Every appraisal I have ever had to do, the market value was lower that the appraised value by a fair amount (usually like 20%) perhaps that is just because I live in Saskatchewan, but I think not. I think it would be fair to say that most appraisals come in higher than the market price. Please correct me if I am wrong, as my experience is only with the 6 appraisals I have actually had intimate knowledge of.

Question for Matt.

What would be wrong with getting a property appraised UP FRONT before you sell it rent to own (probably less than $500.00 which you could also tack onto the price)? If the property appraises for say 15% or more than the market price what would be wrong with marking up the property to this appraised level? They (the buyers) still will be able to get at least the appraised value when they go to get their own financing AND you will have a relatively recent appraisal ready to give to the lender on your tenant buyers behalf. Banks seem to like to lend based on appraisals if they can in my experience.

You make more profit, the tenant buyers can still buy. Everbody gets what they want.

Modified by darren bird at Sun, Feb 06, 2005, 01:55:18