There's One Hurdle Left Before I Submitt This Offer!
I have been speaking with a homeowner whos willing to sell their property for a negtiated price of 11k. However, the neighborhood comps are between 40-55k. I'm really needing the appraisal done to give me an exact appraisal value. The problem is, I have to wait for another property to close in order for me to pay for the appraisal. Is it moral or immoral to ask the seller to pay for this appraisal? What "win/win" situation can come out of this? 
[addsig]
if you are giving 11K for a house worht 45K after repairs, what do you need an appraisal for. I hope your making a profit from this and you've estimated your cost correctly.
Quote:
On 2003-11-02 09:27, nebulousd wrote:
if you are giving 11K for a house worht 45K after repairs, what do you need an appraisal for. I hope your making a profit from this and you've estimated your cost correctly.
The repairs are estimated at 12k. In order for this deal to work, I'll need a high appraisal. A hard money lender will do 65% of the ARV.
There are appraisal companies that will wait till closing to get payed. I suggest you call around and try to find one.
Quote:
On 2003-11-02 13:16, boyd4444 wrote:
There are appraisal companies that will wait till closing to get payed. I suggest you call around and try to find one.
That's what I was thinking, but it's a fairly small town, and if the appraisal comes back at 40k, my deal will look like this:
Seller: 11,750
Total repairs: 12k
plus closing cost, title search, ins, etc..
so if the appraisal comes back low (it's between 40-55k), I might be looking at a problem. But worst case senario, I'm out of the cost of the appraisal. I've suggested that the seller pays for the appraisal, I'm waiting on a response.
Put the appraisal on a credit card or borrow the money from a friend if you can't get the seller to pay or an appraisal companyt to wait till closing.