What, two appraisals?!?

By
Real Estate Broker/Owner with The Hilbun Team DRE# 01872559

If your client is buying a flipped home, then be aware of the previous purchase date!  If a flipped home is sold within 90 days of the said property, then the lender may require a 2nd appraisal.

Money TrapI just got caught in this trap and didn't even see it coming!  Apparently, there's also a new law in California stating that you must use the lenders approved appraisal company, which has created an inflated appraisal cost!  You usually can get an appraisal done for $400-$450, but with this new legislation the cost has jumped up to $550, ouch!  Then they're asking us for 1 more?  That's $1100 in just appraisal costs!

Also, another part of the FLIP to be aware is if it's going FHA, then the home cannot be marked up more than 20% of the last purchase price.  You may waste time for your client because the loan may get denied.

Agents in California, be aware of the this and share this with your clients and don't get caught in this money trap!  Thankfully, everything panned out for this home.

Comments (1)

Marcie Sandalow
Marcie Sandalow, Compass 301.758.4894 - Bethesda, MD
Bethesda Chevy Chase DC real estate

California and Maryland are in stiff competition for messing with real estate agents.  Good information, even if I don't reside in CA.  

Sep 01, 2010 07:49 AM