Refi appraisal

5 Replies

I am in the process of doing a cash out refinancing on a house that I have completely renovated. I'm hoping to pull out enough cash to payback loans that were used for purchase and construction so need as high of value as possible. I have an appraisal scheduled next week and was wondering if anyone has any tips on any ways that I might improve or help influence the appraiser. Thanks

You might try providing a list of comps that you feel are comparable and favorable to your property. Maybe he'll be respectful and try to use the ones provided as long as they work. 

Make their job as easy as possible by give them comps that are in worse shape and sold for what you are aiming for, or more. To contest or verify replacement costs, one of the ways of valuation, you could check around with contractors to get an idea of what it costs to build a new house per square foot. (There may be too many variables to get an estimate, but worth asking)  

Or you could go a step further and do an appraisal yourself and give it to them. I had a high school teacher who told me to write my own letter of recommendation and he would sign it. (Oh the possibilities!) I think you could do the same here. It would be a bit of a learning curve if you've never done it before (it was for me!) and open to interpretation about the condition of a house. But there is also a definite value to one material over another, i.e. vinyl flooring vs. marble. You may be able to get information on how certain materials factor into the value.  I can send you a copy of a professional appraisal that I in the process of looking at a duplex. It would shed some light on the appraisal process and how they reach numbers. It would also probably help with choosing building materials in the future (assuming up-front cost of the materials is the same).

@Aaron Reynolds

Listen to the Bigger Pockets podcast show number 7 with Ryan Lundquist. There are plenty of ideas in there. Ryan is an appraiser! Next time I am about to get an appraisal, I will listen to that show again beforehand.

I am an appraiser. Make sure you know if giving him/her comps will aggravate them; call and ask them for the answer. There are lots of opinions on this matter amongst appraisers, so ask before you give them sales; some it bothers and some it does not. I will give you all a hint: if the appraiser is good and knowledgeable (sometimes a big "if"), they already have all of the comps. If you have some insight into those sales, tell them, but they SHOULD already have them in their database or have access to them. My suggestion is give them a list of all repairs and costs for your property and tell them what your thoughts were when you purchased the property, ie...renovate and flip for profit. If you thought you bought it "X" percentage below ARV minus repairs, then tell them that too. DO NOT try to tell them what you think it is worth in so many savvy. Do not do an appraisal if you are not a licensed or certified appraiser, in some state you can get into trouble. Appraisers are just people, so talk to them with the same respect you would like to be talked to with. Having said that, appraisers should be the most knowledgeable people concerning the real estate market (they are the eyes and ears of the market); the trick is getting a knowledgeable one because those that are not knowledgeable are a nightmare.


Thanks for the tips.  I'll be listening to podcast #7 on the way home today.

And will have renovation costs broken out and ready to share.

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