Details to maximize appraisals

[Tracey Hamilton]

The husband and I are looking at the market and getting ready for our first flip deal. We intend to get a HELOC on our primary residence (paid off) to mostly or completely finance the first deal.

My questions are, what factors are the appraisers looking at, how are the different factors weighed, and what are the top things I can do to max out my appraisal value? 

Initially, of course, I will be looking at appraisal value on our current home.  I already anticipate issues, because we live very rurally, and comps will be few and far between geographically, with huge variation in the properties they can find.  

Also, how much of a factor will current employment be in a heloc?  My husband is on a,layoff right now, receiving unemployment income.  

Thanks to everyone in the bp community!  The blog and forum are invaluable to us! 

Tracey in Oregon

[Peter Tverdov]

Every time I have an appraisal done, I type out a 2 page cover letter of what recent upgrades were done to the home, what I believe the home to be worth because of the rehab and then I include 6-8 Exhibits of comparable sales that have closed over the past 12 months. I will even print out copy of deeds for houses that closed but were never on the MLS if applicable. Then I meet the appraiser the day of, walk with him and at the end say, "I spent a few days preparing this for you, I thought it might help you as I have found comparable sales and comparable rents. If you have any questions please let me know."

Most thank me, a few grunt and some have even called me and asked questions. It gives me piece of mind that I did everything I could to get the sucker to appraise.