All Forum Posts by: Aaron Jenin

Thanks Brian. These are financed deals, but maybe they are bringing more cash to closing as well. I feel the same way about the inflated appraisals. I'm just wondering why the banks aren't feeling that way. Unless they just go by what the appraiser says. They're really forcing these values up rapidly and there's little to no justification on some of these blocks. It's quite surprising some of them. 

Thanks guys! I read that some appraisers do go about .25 miles from the subject property to produce a comp value, but in the particular neighborhoods I'm talking about there are 3 month or less comps on the same block. (same bed, baths, sq footage, etc.) And they're coming in almost 100K over that comp. The newly remodeled houses I'm talking about are done beautifully, way over what the neighborhood norm is, and they're in low income neighborhoods. I understand gentrification, and this may be going on, but from the standpoint of the mortgage loan, I'm just wondering how the bank pulls the trigger on these overly valued row homes with no justifiable comps. Do they really just go by what the appraiser's value is?

I'm in the Philadelphia area where the flip market is pretty crazy right now.  I've noticed a lot of newly remodeled homes are selling for way over what the market comps are justifying.  How is this happening?

For example, a property sold for $45,000.00 in November 2016.  It now sold for $189,000.00.  The closest comps in .25 miles are $95,000.00. How are these flips appraising for such a high amount over the current comps? And how are the banks lending so far over the market value of a particular neighborhood?  I always thought an appraiser went off current comps to help get to a price.  I get that high end upgrades and all the best trimmings adds significant value for the retail market, but not that high over market.  What am I missing?