Do appraisers just hate flippers or what?

[Kevin Suksi]

So here's a crazy story.

We picked up n REO to rehab. This home is a half mile away from another one that we sold in February for $111,000. The two homes are identical for all intents & purposes - 3/2 brick ranches, 1100 square feet.

We rehabbed house #2 (subject property) identically to house #1 (february sale of 111k). Updated everything, granite, ceramic tile, wet bar in basement, etc.

We put house #2 on the market and got it under contract literally in 12 HOURS for $113,000.

The appraiser comes in and says we're all good.

Then the file gets flagged for review - we're told this is a formality.

Then, they come in and throw out all the comps that had any value, and tell us the only legitimate comp is a house a MILE away that sold for $95K. They mark it up by $3K because the $95K house had ORIGINAL kitchen and bath (we're talking about 1950 houses).

Appraiser comes back and says our house is worth $100K - completely disregards the house WE SOLD a half mile away 4 months ago for 111K!!

I'm totally convinced that it is these folks who are killing the market.