Appraisals on flipped, as-is properties?

Appraisers cannot exclude comps if they are relevant when valuing the subject property.  Appraisers are not allowed to ignore any comp if it is relevant, despite the client’s wants , needs and guidelines.   FHA can tell an appraiser to ignore or to not use certain comps, but the appraiser is not bound to follow the client’s guidelines.

Springs

in Appraisals 12 years and 6 months ago

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bigwayne | 12 years and 6 months ago

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I’ve been looking into buying an “as is” house (because that’s what I can afford), and a lot of these places seem to have been short sales, estate sales, etc., that are now back on the market unrenovated but at a substantial markup — sometimes more than double what they sold for just weeks earlier. I’m wondering about getting financing for such a place. How would an appraiser evaluate it? Is it likely that the house will appraise at much less than the marked-up asking price?

emilyfrances | 12 years and 6 months ago

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We are in contract on a house (not a flipped one) and FHA does not allow the apprasier to use a flipped house as a comp.  I imagine they also have rules regarding the purchase of a flipped house.  It will likely be that you can’t purchase a house that changed hands less than X months ago.  Banks probably have guidelines they need to follow on conventional loans as well.  You should check with your bank to determine if they’ll finance a flipped property.