Guess at Refi value?

Question

Bought a 3/1 in cosmetically roughy shape with a dead central ac unit. Had some mold/mildew built up inside and very dirty white paint. Appraised for 70,000k. I installed new ac unit, repaired and painted outside, kilz the. Painted entire inside. Comps in the area are 90-95k. Do you think those repairs could bring it in line with those comps? Could fixing all of that raise an appraisal 20-25k from a year ago?

Kyle Dwyer · Answer

Congratulations on your investment property! It sounds like you've made some significant improvements to the property, and that's always a positive step towards increasing its value. However, estimating the refinance value can be tricky without considering all the variables involved.

One suggestion is to look at recent sales comps in your area that are similar to your improved home. Take note of properties that have recently sold and compare their condition, square footage, and location to yours. This will give you a better idea of what the market is currently supporting in terms of value.

It's also worth consulting with a local realtor or appraiser who is familiar with your market. They can provide valuable insights and help you gauge the potential increase in appraisal value based on the improvements you've made.

Keep in mind that while repairs like a new AC unit and fresh paint can add value, appraisers may also consider other factors such as the condition of the kitchen and bathroom when comparing your property to comps. Make sure these areas are in line with the expectations of the market in your area.

Best of luck with your refinance and future investments!

Eliott Elias · Answer

Talk to a local realtor about this. If you bring the property up to the level of the comps, you can justify a raise in ARV even a few months after you’ve purchased the property.

Caroline Gerardo · Answer

Look at the comps. Sold in past three months with a loan? Interior photos look the same as yours now? Same square footage and area?

Paint and cleaning mold has no appraisal value. Some areas are decreased in value since last year, depends on location.

AC does have value, again depends on location and how hot it is in summer.

Greg Kasmer · Answer

Alex - When you say "cosmetically in rough shape" are you talking about the mold/mildew issue or other parts (kitchen, bath) of the home? I think the appraisers will compare the finishes in Kitchen and baths when comparing homes and determine if they are relative comps. I'd also had appraisers ask the type (and how much) work was done to the house. If you installed an A/C and painted the house I could see them determining that is about $15k worth of work to the house and maybe get you a $85-$90k ARV assuming the kitchen and bath is similar to other comps. Good Luck!

Mason Liu · Answer

Lot of variables here to make a guess based off the information provided. Assuming that you have multiple comps in the areas that are recent and look similar to your improved home, then yes the repairs and improvements + market fluctuation could lead to your property being worth closer to 90-95k now.

Guess at Refi value?

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