Question about a home appraisal and deal

[Tom Mills]

Hi,

I have a HUD home under contract at 80K. HUD had it listed for 110K, then 99K, then I won the bid. The house is 1125sqft, a 2br, 2 ba in a nice location and needs an replacement AC, and only other minor cosmetic cleaning/ fixes. I'd estimate about 6K total.

 I plan to live in it for a while and then rent it out. Rents will be around 950 - 1000.

The home last sold for 108K, and I figured after fixing it up it would be at least 100K or so.

The Bank just did an appraisal and it came in at 82K in as is condition.

Question:  Does the bank appraiser know that I am paying 80K and targets their appraisal at close to that for any possible reason?  

I was really hoping for a higher appraisal, and now I am a bit concerned about the spread. 

Thanks

Tom