Cambridge, MA · Member since 2013 · 18 posts · 0 votes
Hi,
I have been offered a deal in Philadelphia. This property stil needs to be rehabbed by the person who is offering me the deal. I would like to know if I can get an independent appraisal for the ARV from a professional. If you can recommend me a person to do it, please feel free to msg me.
Hello, I am an appraiser in the South Florida market area but i recommend you going to the appraisal institute website & locating an appraiser. Let him know you are looking for an after repaired value & provide with a list of things that will be done to the property. http://www.appraisalinstitute.org/findappraiser/default.aspx
If you can find a Realtor to work with they can print out the recent rehabbed sales for you. That information might solve your problem and it won't cost anything unless you want to buy your agent lunch for his/her time.
"This property stil needs to be rehabbed by the person who is offering me the deal."
How well do you know this person and their level of experience? If you have very solid references or a good way of verifying the legitimacy of the person you are dealing with, that might turn out okay, but I think the ARV is trivial compared to knowing the "joker" you are dealing with can deliver a satisfactorily completed rehab.
great thing about Philly is that comps are usually readily available. Lots of identical properties in the same street. Any agent can pull for you.
Average value for the street is easy to assess. Rehab cost is a bit trickier.....unless its just cosmetic
Make sure you're accurate on rehab....it's the single variable that drives the value of the deal. Watch out for cheap houses advertised with low rehab estimates. A $20k rehab can quickly become $3ok. Ask me how I know !!
Hey Antonio, try using Redfin.com it's the closest thing you'll get to the MLS if you are unlicensed and it's free.
Type in the address of the property you are looking at acquiring and the map will center on it. Then delete the address, click "Sold" within 1 year or so, and zoom out the map for an area of a few city blocks. You can narrow the sold comps down by age, square footage, price and proximity to your subject property.
I have been hunting property in Philly and using Redfin my Agents, Contractors and Attorneys have affirmed my ARV's are pretty accurate. After all, you'll be using very similar information to arrive at the ARV as they would be using.
Check out my blog as it develops I will give more detail as to how I estimate values, and how correct my initial estimations were.
If you don't have the skills and knowledge to come to a value and want to get an appraisal, and you will be buying, go to your lender!
If you hire an appraiser, their estimate of value will or can be similar as to the purpose for the appraisal as a sale, but to do that they must have a sale contract too. They will be hired by you and that appraisal won't be acceptable for the lender's loan purposes, The lender needs to order it. Or, you'll be getting 2 appraisals.
The appraisal can be done with the plans and specifications of materials before the property is completed, but there will be a final inspection and statement of value.
If you ever use any valuation system off the internet I suggest you validate and confirm the data, most are not that reliable, IMO. :)
I am cash buying so there is no appraisal from any lender implicated. What I am buying is a turnkey property for cash-flow that still needs to be rehabbed and I wanted to be sure that what I'm paying now is matching the ARV.
Thank you to everybody again and in particular to Euri Lorenzo for the link, I find it really useful! Thank you as well to Clifford Lasky for sharing his knowledge. The problem with the area I am buying is that there are too many foreclosed properties so the price range is really confusing and that's hy I was thinking to hire a professional.