Why no mention of appraisers?

Question

I read a lot of posts here about deals and buying and selling etc. And most people seem to look at their team as Broker/agent, GC, broker/lender, equity partners, PM, maybe a title company is discussed now and then.  But no one ever talks about finding a great appraiser to give you accurate ARV #s etc. Why is this?

Right now, I am thinking that finding a good appraiser to evaluate my deals could be worth its weight in gold. At the end of the day its the appraised value that matters, not the BPO or someones guess etc...

thoughts?

Greg H. · Answer

@David Schach

Are you willing to pay $400-600 for every potential deal ? If so , the appraiser will be getting all the gold

Account Closed · Answer

Ok, I'll put in my 2 cents. Any appraiser/consultant  you might hire is a source of knowledge, insight, and data. You only hire someone who knows more than you do in your market, and you pay whatever he/she asks, because you need the help and because it will benefit you in your deal. An interview in advance of hiring the appraiser will benefit you both.

Kevin

Robert M. · Answer

Appraisals for banks do cost $400-$600 but a basic appraisal to determine current market value without all the bank required documentation can be had for $275 ( and banks order but do not pay the bill,  a third party that cannot choose the appraiser does) . I know because I just ordered one today to get a starting point for discussions on possibly selling a house to the tenant.

Little better in my mind than a "comparables" because appraiser actually visits/inspects the house, and is supposedly third party independent.

Patrick Johnson · Answer

Hi David. I like that idea to. Seems like it could be beneficial since I can see how the investor and the appraiser have something good to gain from the relationship, but I'm a newbie. Maybe I'll see things differently after I get some territory behind me.

As a newbie I'm excited to find opportunities to add value to what I give in order to increase the value that comes back to me, even if it is just the value of good relationships.

Rhondalette W. · Answer

Currently I am in the middle of closing my first single family home and I was surprised to find out that the appraisal cost $475. I agree I wish there were more conversations here about appraisals.

Account Closed · Answer

It is hard to find a good appraiser.

If you are getting a loan, the bank will order the appraisal, thus choosing an appraiser is out of your hands. The bank will typically only honor the appraisal they ordered.

If someone is buying your property and they are getting financing, it is the same story - the bank will order their own appraisal and disregard others (in most cases).

I see where you are going with that idea, but I would encourage you to go through the underwriting process yourself and get comfortable doing it. This will give you confidence, especially when it comes time to negotiate.

David Schach · Answer

good point. last time i paid an appraiser it was closer to $200. but i think dropping $600 and not getting a deal done would be wasting time and money.

Account Closed · Answer

If there is a purchase agreement in place that typically becomes the appraised value since that is the price a buyer is willing to pay, and that a seller is willing to sell.  That alone usually gets the appraised value in a sale.

Now if you are looking to have an appraiser value your property at the top of market value for refinancing options or maybe the opposite for purchasing a property at a dirt cheap price.  I would say go for it and start networking with an appraiser who you can bring out of your back pocket to give you the price in your favor.

Good luck!

Michael

Why no mention of appraisers?

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