Appraisers - What to give them when selling?
Hello BP community!
I am getting ready to put my first flip on the market. I have heard and read multiple people giving/leaving a packet of information for the appraisers. This packet would be information about the property they might have not been aware of. Such as an itemized list of updates, cost of said updates, comps (I have heard different opinions on this), etc.
I am curious to know if anyone has had luck with doing such and what information you have given appraisers to get help get your property appraised at top value.
Thank you in advance,
Caleb.
@Caleb Vance I leave a packet for my appraisers, including an overview of the property (1 page), list of updates, and some comps in the area that i believe justify my ARV. I try to keep it short, clean and simple so they actually take the time to look through it. If you PM me i can send you an example of what i use
They're appraisers they get people telling them how great and how much the property is worth.
If they can see the improvements they'll factor it in. If it's an improvement that's not readily apparent, prob won't matter to him.
I guess it doesn't hurt since you can probably give the same info to a buyer and it'd help you more.
#4 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#4 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Caleb Vance, we always leave an improvement list but do not include costs. If they know costs, they may limit your value creation to cost, but their imagination is their limit if you don't include.
I leave them 3-4 reasonable comps to support the value.
If there are multiple offers, I leave them the front page of the other offers that I didn't accept. This is key, as it proves that the buyer isn't the only one that saw the value in the property.
I always try to meet them at the property.
At the end of the day, I try to do as much work for them as possible. A good one will take my info and then do their own research, but the only appraisal I have had come short was on my own house refi (non-arms length transaction). Flips have always appraised at what I needed them to with my strategy.
@Evan Polaski Thank you for the advice and information, I appreciate it!
#3 Starting Out Contributor
- Specialist
- Mendham, NJ
A others have said, your list of upgrades is the most important, without costs. If it is hard to comp, I will leave comps with notes, but appraisers always feel like you are stepping on their toes so lately I've left the upgrades and waited for them to contact me, letting them know if they have any questions at all to call me. When you are too into it, they think it's fishy.
