This is actually not a story, but some tips I have on appraisals. How do you make sure an appraisal really reflects the actual value of the property?
I’ve done over 400 homes in my life and never missed an appraisal in Phoenix. Now having been involved in several transactions in the Midwest, I very comfortable about how the process works there also. Knowing what your property is worth is a very important part of being a successful investor.
FYI….Appraisals are really just the opinion of that particular appraiser. And appraisals are not recorded anywhere unless it is accepted. What I am saying is that you do not have to accept one appraiser’s opinion. Don’t be afraid to ask the appraiser where he got his numbers. Point out anything you think he might have missed.
I had one appraisal come in $5,000 below where I though it should be. I immediately told him that I did not except his appraisal and would be getting another opinion. The second appraisal was more accurate.
When evaluating a property, the best place to start is with current sales in the immediate area. I like to at least 3 like properties. Then, the home’s features should be considered. Keep in mind that different areas have different criteria. In Ohio for example, 1 or 2 baths does not make a difference in value. In AZ this could make a $30,000 difference.
Of course recent updating or rehabbing is extremely important. One thing I have done in the past is to provide the appraiser before and after photos. This proves that the improvements were done after the last appraisal and should be factored into the value.
There are many other factors that must be considered. I will be speaking on this subject at an upcoming meeting. Watch for the date.
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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.wealthbuildingequity.com/
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