Both of the appraisals are back on The Fourfecta House, and we’re very surprised — and happy — that they both came in at the purchase price…
The Trifecta House and The Leak House both sold for $5000 less than what this house is under contract for; given that they are in the same subdivision and very good comps (both appraisers used these as two of the main three comps), we expected this appraisal to come in closer to those sale prices. Had that happened, we would have likely lowered the sale price to the appraised value; but, the appraisers made some good adjustments and brought the value in $5K higher than the others and higher than what we expected.
The buyer’s loan file has now gone to the underwriter for approval, and the last step will be to get underwriting approval from the local down-payment assistance program the buyer is using. Hopefully that will be completed this week and we’ll close by the end of the week or early next week.
I’ll post more once we get this one closed…
Glad to hear all is going well. It’s always nice to be moving forward instead of backtracking and jumping over hurdles.
I’m really glad that you managed to sell it for an extra $5k. Good luck with your future projects Scott.
M Mark
J, Scott,
One question about coming up with ARV when assessing deals. Do the final apprasials ever come up a bit higher when the newly renovated rehabs are compared to comps where houses are in mint to good condition.
Hey Mark,
What we find is that our appraisals are generally coming in right at our sale prices, which are generally near the top of the range of what would be considered “market price.” In other words, we tend to get the highest reasonable amount for our properties, and the appraisals are just barely coming in where they need to be. That said, when there are other renovated houses that are used as comps, we find that the appraisers don’t have to search for houses that are so far away or sales that are too old, so the appraisals seem “easier,” if that makes sense.
And we certainly stress a lot less when we know that there are other remodeled houses in the area that can be used as comps. Though, for the most part, because we buy in the same areas over and over, most of the remodeled houses being used as comps are our own.
All that makes perfect sense, by the way have you caught that new show on Spike TV Flipmen? What are your thoughts on getting properties through the trustee deed sales at the courthouse.
Mark