OfflineI came across an house thats for sale...Its a duplex with 30k in upgrades and owner says it has been appraised at 605k...The asking price is 309k..Its been on the market for 3 months so I think I may be able to offer way below asking price.
I entered the property info on the real estate analysis system and the e-appraisal says its valued at around 200k...There weren't any comps available.My question is why is there such a large difference in price between the e-appraisal price and the price the owner says it was appraised at?
What do I need to research to get a more accurate price?
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the owner has given you an inflated price. How long ago was the appraisal done? The appraisal should be no more than 30 to 60 days old. In addition, when dealing with income properties there is a whole new set of rules for whether it is a good deal or not. What are the rents? Has there been any vacancies? Does it need repairs? For this market, unless it is on the ocean, 309k seems very high for a duplex and I live in CA where prices are low, but high compared to the rest of the country.
KimmyJ is correct. Owners will sometimes over inflate a price. It is not like they are trying to be dishonest but sometimes they are.
I have heard stories of homes in Southern California where there are homes in a neighborhood almost identical where one person is asking $820,000.00 and when another homeowner decides to sell, they ask the same pricing for a property that they know is not of the same condition, has many issues with repairs and they feel like they should get the same price for their property.
Many lenders will not accept any appraisal that has not been ordered by them or is not as KimmyJ stated, from no more than 60 days past.
Thanks guys...I'm going to dig a little deeper into this and get some more info
Make sure you do your homework first before jumping in and buying any property. You do not want to buy something that you paid way too much for and will be a problem for you. Remember all that glitters is not gold. They may tell you it is a great deal but check it out for yourself. If you check it out at least you know either way.