I'm reading David Greene's BRRRR book, and he notes:
First off, it’s important to recognize that appraisers in different areas use different formulas to determine the values of single-family homes. They are all still comparing them to other single-family houses, but they give weight differently depending on certain aspects of a home. For example, a California-based appraiser is much more likely to give more weight to the proximity and condition of a home than to the square feet of the home. In other areas, like the South, appraisers are more likely to use the price per square foot of a home than the condition it’s in. Understanding
Greene, David M. Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple (p. 60). BiggerPockets Publishing. Kindle Edition.
What is the biggest component to appraisals in Texarkana? Have you found that appraisers start with the price per square foot and adjust from there, as Mr. Greene suggests?
