Are appraisals regular practice for flippers paying with cash?

[Danny Jimenez]

Hello all! Is it normal practice for someone looking to flip a property to run an appraisal prior to buying in all cash?

I understand that appraisals are needed when working with a bank and I believe are optional when there is no bank in the transaction but was looking to see what others are doing.

My thought is that I would understand why you want one after the rehab but not sure if it makes sense before.

Thanks in advance! Happy Friday all.

[Randall Alan]

Quote from @Danny Jimenez:

Hello all! Is it normal practice for someone looking to flip a property to run an appraisal prior to buying in all cash?

I understand that appraisals are needed when working with a bank and I believe are optional when there is no bank in the transaction but was looking to see what others are doing.

My thought is that I would understand why you want one after the rehab but not sure if it makes sense before.

Thanks in advance! Happy Friday all.

 Appraisals aren’t necessary when paying cash… but could be useful as a marketing tool if you were trying to explain to someone their house isn’t worth what they are asking, perhaps.  

We’ve never done an appraisal on a cash buy.  We already knew it was a good deal.  Zillow’s tools will give you 90% of the info you need anyway..  price of houses selling around your subject house.  Historical pricing of already sold properties, etc.

randy