Appraisers and flipping

I have had concerns over seasoning of title in the past year. I have found some lenders that do not require seasoning, but now there are questions about appraisal values.

I bought a house for $76,000 that was worth $125,000. It is a relatively new neighborhood, and houses are selling for $120,000 to $170,000. An appraiser said that it would not appraise for much more than I paid for it due to chain of title concerns. Has anyone else run into this issue?

I am going to meet an appraiser at another property to explain what we did to it, so he can possibly overlook chain of title issues: although there are many comparables in the neighborhood.

I am being penalized for making a good deal. Anyone else with these issues?

Title should have nothing to do with appraisal value. Appraisals are done based on market comps. If this is in a subdivison with many same floor plan homes then they should be using those comps on sales 6months to 1yr out.

However since you bought undervalued, many times the appraiser would reference as to why if marketable knowledge is know, such as distressed sale. I would recommend going back to the original appraiser. The house should have appraisered for 125K back then if that is what it was worth, pending market trends. If you do not know who did the appraisal, contact the mortgage company and they will have a copy to give you with their information.

I have heard appraisal being low because of recent foreclosures in the neighborhood. One appraor I spoke with said, if foreclosures are what are selling, then thats what he bases his opinion on.

a single houses individual title has 0% bearing on a houses value though. Theres a good chance that he doesn’t even know anything about the deed to the house, why should he waste his time researching that (unless he’s not very busy)?