STR Appraisals in Pigeon Forge
Hi there,
We put a contract on a cabin in the Smokies and were asked to remove the appraisal contingency. There were multiple offers on the property and our bid was $1K over the next highest. Sellar said she would just sell to that person if we didn't want to waive the appraisal. We went forward with the contract given how the cabin cash flowed and how hot the market was BUT our appraisal came back at 20% less than purchase price. So, we had to make the difference up in cash which changed the numbers quite a bit.
I was expecting it to be a bit lower but not that much lower and looking at other houses I don't really don't think you could purchase it for the appraised value. Is this normal now for that area? Are there any good ways to try to time the appraisal to get info back sooner ie prior to inspection to avoid this given how it changes the numbers? If not how can you calculate your coc with such an unknown? Our numbers should still work but it was a surprise for sure. Thanks so much for any input!
Most Popular Reply
@Jessica Folger eek sorry that happened. We have a few strategies that we use to deal with that situation. But at the end of the day, an appraisal is just one person’s assessment of the value, and appraisers are human, and can do a bad job. Every now and then you will run across a bad appraisal in either direction.