Appraisal coming in too low.

[Jimmy Stainback]

Hey everyone. I have used the BRRRR method on several projects in the past year and despite the market being hot, the properties aren't appraising for how much my comps, research, data proves they should so I ultimately end up leaving more money in the deal than I'd like to. My question is not how to add value to a property in order for it to appraise properly. Rather, when an appraisal comes in low, what do you do? Do you challenge the appraisal with your own sales comps? Do you have a different appraiser from the same lender come out to reassess? Do you start over with another lender? I have challenged an appraisal once and it worked in my favor. But seems odd to me that this has happened several times now. Is this an issue you all are facing? Is there a way I can avoid this in the future? Thanks in advance.

Lindsey Stainback