Appraisal without paying

10 Replies

Is there any way to get a rough Idea of what a house will appraise for without paying for an appraisal? If I think the home will appraise high enough, I will higher an appraiser. I just don't want to pay $300+ and then find out it doesn't appraise high enough. I'm looking at rehabbing a foreclosure.
I'm approved for 80% of appraised value. So if the home appraises for less, then that's money out of my pocket i have to use. Any help is appreciated....
Thanks for your time.

You'll probably need an appraisal on it when you sell it - so why not do it now. It will probably be "current" if you take only a couple months rehab time. Then pass the appraisal fee onto the buyers.

If you want to know IF you should purchase the home, just ask a realtor to run comps or solds for you in the neighborhood. That will tell you what the house will probably sell for.

Here are a couple of free appraisal services you can try:

www.zillow.com
www.domania.com

For a more reliable, yet low fee approach to a physical appraisal would be an AVM (automated valuation method). For less then 30.00, you will receive the same content/information as a tradational appraisal minus the actual visit by the appraiser (AVMs have gained acceptance by several lenders in replacement of a traditional appraisal).

Hope this helps.

Regards,

Scott Miller

Originally posted by "jwilson32":
Is there any way to get a rough Idea of what a house will appraise for without paying for an appraisal? Thanks for your time.
Originally posted by "Roanimare":
...Then pass the appraisal fee onto the buyers...
:protest:

You cannot do this. Appraisals are written for a specific client. You cannot change the name on the appraisal after the fact. When you sell the buyer's lender WILL require a new appraisal.

Originally posted by "EZLoanz":
Here are a couple of free appraisal services you can try:

www.zillow.com
www.domania.com

For a more reliable, yet low fee approach to a physical appraisal would be an AVM (automated valuation method). For less then 30.00, you will receive the same content/information as a tradational appraisal minus the actual visit by the appraiser (AVMs have gained acceptance by several lenders in replacement of a traditional appraisal).

Hope this helps.

Regards,

Scott Miller

Originally posted by "jwilson32":
Is there any way to get a rough Idea of what a house will appraise for without paying for an appraisal? Thanks for your time.

Zillow is an AVM. What a licensed appraiser will provide is more detailed and more reliable than what Zillow will provide. I am a Certified Residential Appraiser. I checked Zillow's opinion of what my home would be, and the were off by a good 30-40k.

If you really don't want to pay for an appraisal, have a local real estate agent give you a CMA. They'll do it for free, and should give you a fairly reliable range of value for the property.

jwilson,

if you are still monitoring this post at all....

When you say in your original post you are approved for 80% of appraised value is that 80% of the current value in current condition? Or is it 80% of the After Repaired Value (ARV)? This makes a huge difference. Most rehab and hard-money loans base your pre-approval off of the after repaired value, not the current value. The current value is (for all intents and purposes) the sales price unless the home appraises for less than that.

If you are looking for a value after repairs are done, then you are going to have to have a real estate appraiser do the job because you will have to give them some written idea of what you are going to put into the home after you buy it. Your lender will probably require you use an appraiser that is acceptable to them, so before you haul off and spend the money, talk to your loan officer. I'd hate to see you have to spend the fee twice just because you chose someone unacceptable to the lender.

good luck.

Call 3 brokers in your area and ask for a CMA from each of them. You may want to start a business relationship with an appraiser and keep them handy for pre-rehab, post rehab, pre-mortgage and consulting. If you do order an appraisal it can be a great tool to communicate with your future lender, however they will need to request an appraisal for their own. The question is what are you willing to spend on maintaining your investments. If you conduct your investing under a business you may be able to take appraisal fees toward you operational cost - but check with an accountant first.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you