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Updated over 7 years ago,
Why not use a Subject-to Appraisal ?
I have a property that Im looking to wholesale however, It is almost becoming a whole tail due to the Seller and their situation to move before summers end for school district. Buyers are having trouble justifying what My ARV and what Im selling it for. I have had two people in the community across the street have appraisals essentially for $30/ Sq.Ft higher than I originally thought the ARV to be. Simliar style home.
My numbers:
contracted at 250K, Original ARV (thought to be) was 340 on the low end. The home needs 20K in repairs I asked 260 for the deal.
The new ARV after comparing the appraisels have it around 400k, low end at 380K
Should I go ahead and pay for a Subject-to appraisal to help a buyer understand what the deal looks like? I haven't heard of many wholesalers using this method to present value on a property.
Or could I have some insight on why this deal looks bad?