Appraisal value higher than market value?
How can I negotiate with seller who only wants to sell at or near the appraisal value, where appraisal seems higher than its market value. It is a class c property used auto sales shop with good traffic counts. What are some ways you can negotiate with seller?
[{"id": "f0vlzgj", "text": "So he wants you to pay retail for his property.  Is it worth it to you?", "replies": [{"id": "f0w103d", "text": "Not worth in its condition to price, it will be once improved.", "replies": [{"id": "f0w60cm", "text": "Exactly. It's almost never worth it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "f0vm4xw", "text": "My recommendation is to get your own appraisal and show it to them. If they don\u2019t negotiate, walk.", "replies": [{"id": "f0wc7q8", "text": "Don\u2019t pay for a commercial appraisal if you don\u2019t have it tied up in Escrow. That\u2019s just lighting money on fire. \n\nOP is obviously just negotiating a P/P.", "replies": [], "depth": 2}], "depth": 1}, {"id": "f0vmepj", "text": "I can't imagine using an appraisal as a purchase price. Just because this person massaged a high appraisal doesn't mean that's what it's worth.", "replies": [{"id": "f0vt5ix", "text": "Tell that to every land seller in Florida right now. Guys are getting appraisals of land zoned ag or vacant based on the idea that it can be upzoned to MF 23u/acre... and then convincing themselves that its worth that... except no one in their right mind would ever build 350 MF units on this land in these locations.", "replies": [], "depth": 2}], "depth": 1}, {"id": "f0vnc3p", "text": "What\u2019s environmental look like. Get a Phase I", "replies": [], "depth": 1}, {"id": "f0vo847", "text": "Time on the market unsold is a great tool.", "replies": [{"id": "f0walye", "text": "What app do you use?", "replies": [], "depth": 2}], "depth": 1}, {"id": "f0voeqb", "text": "Its seems there are no environmental issues, the seller thinks the appraisal is what he should get for the property, regardless of property condition", "replies": [{"id": "f0wsklb", "text": "Can you clarify if a Phase 1 and/or 2 Environmental Site Assessment was/were completed?", "replies": [], "depth": 2}], "depth": 1}, {"id": "f0vsc5n", "text": "Are you buying the business along with the real estate? Are you going to keep it as an auto shop? \n\nTry land basis approach or income cap approach to see if it pencils out.", "replies": [{"id": "f0w0piv", "text": "It's current lease ends in few years, it will be same use after purchase. Thanks", "replies": [{"id": "f0w3owh", "text": "Lease end date is your strongest bargaining tool. Every day they hold uncertainty rises in future profit and value goes down. Tell them you\u2019ll pay market price now, or in a year you\u2019ll be offering 80%.", "replies": [{"id": "f0wlk8f", "text": "Second this", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "f0vsuna", "text": "Appraisals can be tweaked to so multiple values - look into his methodology. \n\nWhat kind of comps is he pulling ? What cap rate is he using? Make sure the appraiser isn't throwing growth #'s into his projections", "replies": [], "depth": 1}, {"id": "f0vusxk", "text": "This is a frustrating process and usually an exercise in futility. Has the seller let you see the appraisal? It's pretty easy to tear those things apart in either direction. Beyond that, arm yourself with information (sales comps, zoning issues, environmental issues, impact fees, costs of required infrastructure improvements, etc) and attempt to talk sense into them.", "replies": [], "depth": 1}, {"id": "f0wcdgs", "text": "Short answer is;\n\nYou can\u2019t. \n\nYou can never get a deal off an unmotivated seller. \n\nBut the truth is - he doesn\u2019t determine market value. You don\u2019t. The appraiser doesn\u2019t. \n\nThe market does. That is absolute. If he has higher offers, you\u2019re SOL. If he doesn\u2019t, and this thing sits on the market for a while, then you can convince him to sell lower. If you\u2019re the only interested party at a certain price point... well. Buyer beware.", "replies": [], "depth": 1}]