How to get best appraisal episode recommendations

Question

I recall listening awhile back to an episode where the gentleman also had an appraisal business.  He gave great pointers on how to get the best appraisal and I'm looking for some good episodes to listen to.  I used private money to invest into a small commercial office building and essentially BRRR'd the building.  I want to ensure I do everything possible for the best appraisal.  Can anyone point me in the right direction on episodes to listen to?  TIA

Kyle Simmons · Answer

Thank you for the response!  My appraisal went phenomenal!  I had the property cleaned to the max and staged pretty well since the building is not 100% complete (minor finishes still needed).  It is a commercial property bringing in $2750/month in rent on 4 units.  Purchased for 105k, renovations of about 35k, all in around 150k with renovations, closing costs, holding costs, and the purchase price.  Appraised at 260k!  Getting 208k cash out refi, pay back my private investors and walk with about 100k CASH! Insanely successful commercial BRRR!!!

Patrick Britton · Answer

I can tell you that a couple of things matter a lot more than one might realize.  And there are a few things that don't matter at all.  However, everything kind of depends on your specific location and the customs of that area.

But here's an incredibly short list:

Make sure the house is perfectly cleaned, looks very well organized, tidy and smells amazing.  Clean all of the windows, power wash where needed, clean up the gutters, make everything look absolutely gorgeous.

If you have installed certain high end items like quartz countertop or strand woven bamboo flooring or if the roof was written instantly replaced, make sure you have evidence thereof and give it to the appraiser when he or she is conducting the inspection.

In short, you want to make your place look absolutely amazing and you want to get the highest Q & C ratings.  Q stands for quality and C stands for condition.  A property that’s Q1, C1 would be The White House, the Taj Mahal, Burj Khalifa, etc.  Q2, C2, would be something from Frank Lloyd Wright, for example.

Most new construction in very high end areas are going to be Q3 and C3 and recently remodeled properties in neighborhoods considered B- through C- will be Q4 and C4.  Ultimately though it depends on the appraisers opinion and knowledge of the area but do whatever you can to get high marks there.  This means proof of purchase and receipts and a list of all of the renovations, etc.

what doesn't matter?  Any kind of super adequacy.  What is a super adequacy?  Think of anything that your property has above and beyond anybody in the neighborhood.  So, if your property has a pool and nobody else has, that's a super adequacy.  If you have a basement, but nobody else has, that's a super adequacy.  Similarly, if everybody else has air conditioning and you don't, that's a deficiency compared to other properties and will bring your value down.

so, spend a good amount of time making aware of what your competition is doing and make sure that you don't do anything more or anything less.