Preparing an Appraisal Package

Preparing an Appraisal Package

Real Estate Investor · Lake Balboa, CA · Member since 2016 · 75 posts · 31 votes

I'm currently putting together a package to give the appraiser on a home valuation.

The Home was a foreclosure that was basicly ripped clean when the former owners left and we put a significant amount of money, work and sweat equity into it.  I was planning on including:

1) List of Work complete and costs.

2) Before Pictures ... Are after pictures necessary as they will basicly be looking at the after?

I'm sure they will want their own comps. Would anything else be helpful?  

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  • Investor · Midlothian, VA · Member since 2015 · 980 posts · 823 votes
    9y

    They better pull their own comps, however, it doesn't hurt to give them the comps you used to price the property. If they are comparable, they should use them.

  • Real Estate Investor · Lake Balboa, CA · Member since 2016 · 75 posts · 31 votes
    9y

    How about after picture or are they not neccesary?

  • Real Estate Investor · Lake Balboa, CA · Member since 2016 · 75 posts · 31 votes
    9y

    Just to follow up.  Before BP it would never occurred to me to put a package together for the appraiser.  It was something I heard on one of the Pod casts.

    I ended up putting a packet together of

    1) Before pictures prior to any improvements I did on the property at the original purchase. He ended up taking a ton of pictures of the "after" that he included in his report.

    2) Break Down of Improvements with related costs

    3) CMA with my own selected comps for his review in comparison.

    End of the day the Property appraised for $70,000 more then what the lender and I anticipated.  

    I have to feel the information I provided helped?

  • Rental Property Investor · Singapore · Member since 2018 · 128 posts · 48 votes
    4y
    Originally posted by @Greg C.:

    Just to follow up.  Before BP it would never occurred to me to put a package together for the appraiser.  It was something I heard on one of the Pod casts.

    I ended up putting a packet together of

    1) Before pictures prior to any improvements I did on the property at the original purchase. He ended up taking a ton of pictures of the "after" that he included in his report.

    2) Break Down of Improvements with related costs

    3) CMA with my own selected comps for his review in comparison.

    End of the day the Property appraised for $70,000 more then what the lender and I anticipated.  

    I have to feel the information I provided helped?

     Wow! I'm following your lead and preparing similar packets now. I heard in one of BP's podcasts a suggestion to mention comps but not their prices, what do you think about it? Did you write down their prices as well or just the addresses?

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    4y

    Appraisers don't like being told how to do their job. So you are walking a fine line, when you are providing comps, don't cross it, it can backfire.

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