House #1: Appraisal

April 18, 2011 · 0 comments

We just got the appraisal back for The Corn House, and I’m thrilled to say that it came in $2500 above the contract price…

I was seriously concerned about this particular appraisal, as there aren’t a lot of comps in the area, and this is the same appraised value that we received about a year ago, when the market was stronger. The last hurdle for this deal will be underwriting, which we don’t expect to be a problem. The buyer is using a downpayment assistance program that does a lot of upfront underwriting tasks — so they’ve already done much of the underwriting around the buyer. Plus, the buyer works for this particular program, so I have a feeling those in charge aren’t going to let her down… 🙂

Anyway, this has been one of the easier transactions we’ve done recently, probably because we’ve owned the house for nearly three years, and so we haven’t had to jump through a lot of hoops with second appraisals, documenting rehab costs, etc. The last issue is that we agreed to install a fence for the buyer; we have that scheduled for next week, and my guess is that — assuming no last-minute issues — we’ll probably close next week as well.

The profit on this one will be next to nothing (remember, this was our first house, and we made A LOT of mistakes), but it doesn’t look like we’ll lose money, and the experience we’ve gotten from this two-and-a-half year project has been invaluable to our business and our success.

I’ll have more to say once this one is sold…






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