BRRRR help! Anyone ever make a "comp packet" for the appraiser?

Question

Hey BP community, big favor to ask here. I'm going to try and BRRRR a place that I just renovated and have rented (In Indianapolis if it matters). Obviously the trickiest part of the BRRRR is getting the appraisal to come in where you need it to. I've gotten the advice previously that you can actually put together a comp packet or presentation for the appraiser. Whether or not they look at it is another thing, but I figured that its worth a shot? I've heard that you should have pictures and a list of what you renovated and then maybe even some suggested comps? I feel like this is especially important for me cause my house is in a tiny pocket of a neighborhood where nothing else much has sold recently (cause its such a small area) and houses to the immediate east are way less and houses to the immediate west are way more. So I feel like it would be helpful to suggest some comps?

Anyways, my big ask is does anyone have a sample one of these that they could share? Having a template to work from is so much easier for me than creating something like this out of scratch. Obviously feel free to take out all of your actual numbers. Does somebody have one that they could share out to the larger community? OR... PM me and we can even figure out a fair trade if that makes the most sense.

This is a big ask and a big help that I'm sure would help many others :)

Anyways, my big ask is does anyone have a sample one of these that they could share?  Having a template to work from is so much easier for me than creating something like this out of scratch.  Obviously feel free to take out all of your actual numbers.  Does somebody have one that they could share out to the larger community?  OR... PM me and we can even figure out a fair trade if that makes the most sense.

This is a big ask and a big help that I'm sure would help many others :)

Dan Maciejewski · Answer

Best practices include:

Keeping it short -- the appraiser has a ton of work and will only spend a short time on any one property

Include notes on the comps that might affect the value compared to yours (old carpet, non-upgraded kitchen, pool needed re-surfacing, etc) Also notes on the variance in sales prices in neighborhoods for your case -- don't assume the appraiser will be local.

Have a list of ALL upgrades on your property with prices

And in most markets the appraiser would rather go out further in distance than time -- they would rather see sales in the last 30 days if possible.

Your agent can help with this -- I would make sure I did it on my property,as well, though! Make this with the idea that you're trying to help the appraiser and save them time and effort, and good luck!

Lien Vuong · Answer

Hey Adam,

Why don't you ask your agent to do it? This is very standard procedure when it comes to selling a property because the selling side does the appraisal. The ones I have used in the past have been very straight forward using three comparables in the neighborhood (.5 miles whenever possible), within a 6 month timeframe of houses SOLD - do not use currently listed, as well as similar specs of the house such as bed and baths. Obviously you're going to use the higher ones in the area so that it will represent it in a better light but this is a fairly common practice.

MLS systems will definitely be able to do this and that is why I asked you to reach out to your agent. Alternatively you can search Realtors.com or Zillow for solds in your local area also if you do not have that resource.

Good luck!

Aaron K. · Answer

You don't need anything too fancy, if you are pulling good comps a list of addresses would be just fine.  If they are truly good comps the appraiser may use them simply because they are likely to see them if they are poor comps that you selected to try and stretch the value they may discount everything you give them.

Adam Sankowski · Answer

@Kenneth Garrett you bring up something I should have mentioned in the post in that I am in Boston and the property is in Indianapolis so I can't really be there to meet the appraiser.  I'll def. try to get my agent to but that's the other reason why I wanted to put something together as I'm a long distance investor.

Kenneth Garrett · Answer

@Adam Sankowski

I don’t have one I use.  It’s typically pretty informal.  I give them addresses, when it sold and sale price.  I usually type it not hand written.  I would recommend meeting with the appraisal when they come out.  Do not send them to the property on there own.  They usually ask what if any remodeling you have done.  I have emailed them a list in the past. Once again it’s informal.  Sorry do not have a list.

Good Luck.

BRRRR help! Anyone ever make a "comp packet" for the appraiser?

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