Using an appraisal will make everyone FEEL good, but that will not be a fair to either of you. We are not in normal times
Appraisals are performed under FanieMae rules such as selling price of comps within the past six months. Prices have increased in the past six months. Appraisal rules do not reflect the market in this weird market that we are in. Also the selling price is not the price received by the seller (commission).
The appropriate way and fair to both parties is a market analysis by real estate agents (3 or more), the fair price is that price less their five percent commission.
I just flipped a home at 16% more than purchase. I owned it for a few days because I understand this and some rely upon appraisal prices.
Important to note I did zero improvements on this home, not one drop of paint, not one screw tightened. Nothing, nada, zilch.
Last edited by Toymeister; 10-10-2021 at 09:51 PM.
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