Getting appraisal and need to note improvements, recommendations?

Question

Hi BP. I am in the process of refinancing one of my properties and have the appraiser coming next week. I have made a number of capital project improvements including insulating the entire building, renovating one unit, and installing two new water heaters. I would like to develop a report for the appraiser noting the improvements and providing local comps. Anyone have any recommended formats or examples? Much appreciated!

Brian Merzlock · Answer

The appraiser may appreciate the added information and these improvements do, at times, help offset any downside the property.  Be very professional in your presentation of the information and avoid trying to influence or oversell items.  I always like to ask for a separate letter for my personal records addressing the 'as is' cash value of the property as well for a few extra dollars.  This helps me know the difference between the intrinsic and the extrinsic value in the appraiser's opinion.  Remember there are typically 3 approaches to determine 'value' and the sales comparison analysis is only one of the three.

Andrew Freed · Answer

@Brian Merzlock Fantastic advice, I appreciate your insight.

Andrew Freed · Answer

Here is a link to a binder I created. I need it to appraise for $675K I appreciate any feedback you can provide.

https://drive.google.com/file/...