Last month, I posted a story about how the contract on my rehab project at 3969 Humphrey fell through due to under-appraisal. It somehow appraised at $101,000. Thankfully, everyone but that appraiser thought the number to be totally off and I had it back under contract within a few days. Actually closing on the property this very afternoon.
The thing I find so interesting about this situation is what the second appraisal came in at. This one came in at $135,000. That means the second appraisal was a whopping 34% higher than the first one. There is no question that the first appraiser simply didn’t know what they were doing. It just boggles my mind that two appraisers looking at the same building and same comps can be so radically different. If you weren’t convinced already, just add this one to the ever-growing proof that the current market is pretty crazy.