How To Impress Appraiser And Help Tell Our Story

Question

We are refinancing a 36 unit property, and have an appraisal coming up. What sort of things can we do to give ourselves the best chance at hitting the appraisal value we want, outside of the core business function of having signed good leases, having a strong rent roll, cap-ex improvements, etc.

Basically, is there anything we can do to "give ourselves an edge" when it comes to getting an appraisal? Can we package information in a way that is helpful/powerful, or anything like that?

The building's financials and fundamentals are what they are, and we are proud of them, we just want to be able to squeeze every dollar of value out that we can.

Thanks in advance.

Jeff Copeland · Answer

Most appraisers appreciate as much DATA as they can get their hands on.

You can provide a folder or binder full of information about the property: Financials, rent roll, copies of leases, letters of explanation for anything that isn't obvious, info on capex, marketing, comps, etc. Along the lines of an offering memorandum if you were selling the property.

Pro Tip: You may want to do this electronically and send it to them as soon as you have their contact info, because of lot of the work that goes into an appraisal gets done before the actual appraisal inspection (so handing them a physical binder on the day of the appraisal could be too little, too late in some cases - but is still better than nothing).

They may use it, they may not. But at least the info was there and you did everything you could to fill in the blanks.

Evan Polaski · Answer

Account Closed, agreed. The financials are what the financials are, and the other work is done. So your major point to move value is in cap rate now. Finding realistic comps that paint the best picture for you.

How To Impress Appraiser And Help Tell Our Story

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