‼️Avoid Low Appraisals 📉
‼️ #realestate Tip 🏡
After completing over 100 property transactions, here is an underrated tip I learned early on in my real estate investing journey. 📈
When I am selling or refinancing a property, I make it a TOP Priority to try and meet the appraiser IN PERSON 🤝 and provide a couple items 📑
You might be asking why it’s important.
You see, the reason I implemented this was that early on when I was newer and less experienced, I had several property appraisal values come in lower than I anticipated and it really hurt from a profit and refinance standpoint.
So here are a couple items I provide to the appraiser:
1. List of relevant comps
must be SIMILAR comps, meaning similar year built, size, features, condition, neighborhood, recently sold
if you provide irrelevant comps, the appraiser may totally disregard them and you lose credibility (ie providing a comparable property from over a year ago)
the more you can provide, the more justifiable your value is in the eyes of the appraiser
2. Comprehensive List of Updates
breakdown of each major item you improved (ie kitchen, baths, flooring, windows, roof, plumbing, electrical, HVAC)
the costs of each item (be honest because an appraiser will have a general sense of what things cost)
the list of updates will signal to the appraiser how significantly you improved the property’s condition and thereby increased its value
Bottom line is that appraisers are human and often pretty busy, so you don’t want to act like you’re doing their job for them, but the human element of meeting them in person can’t be denied and is often appreciated.
Two different appraisers will rarely come up with the same exact value on the same house because most of their job is somewhat subjective since it’s ultimately what value they place on the factors I mentioned above.
Ultimately, the appraiser may use little of the info you provided and that’s part of the appraisal process, but I truly believe that it doesn’t hurt your chances.
✅ Follow @peakinvestingshow 📈
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