Appraisals Part II

Part II

In part one we talked about the importance of getting appraisals. We talked about why this is important and we even looked at a situation involving the appraisal of a piece of property. You have rehabbed the property and are making the last minute decisions on aesthetics. You have gotten a realtor and are ready to put it on the market. Is there anything else you can do? You have been thinking of another situation. Maybe you can even lease it out? Is this a viable option? Since it is in semi war zone it is not one you want to lease option out. Because all you are doing is really creating a problem you will have to fix later.

So what you really need to do it to put it on the market before it is finished with the rehab. And have your realtor bring somebody to look at it. Once you have an offer, then you can deal with what still needs to be completed.

I know this sounds crazy! You may be wondering why you should do this if the rehab is not done. Sure maybe there are a few things besides the carpet. And there are few things that could easily be done to enhance it, but you don't know if you would get the return on the money.

Should this be your biggest conce
? No.

Right now I think your biggest concern is getting out of the property, isn’t it?

Quit worrying about return on the money. Just make sure you make some money.

But sometimes you just got to do what it takes to get it moved and learn your lesson and be a little bit more selective on where you want to do a rehab next time.

And in semi war zones is not where you want to rehab them!

Take it from me. I have rehabbed a lot of them in those areas and every single one of them was hard to sell. And realize this; if you have an appraiser come in before it is ready to show, you are going to suffer from that appraisal.

Yes. You will probably get a little lower appraisal but so what... At least you know you can add a good 10% on to what you are going to get. And the appraiser is going to appraise it assuming the work is done but he is still going to low ball a little. So what? That appraisal is between you and you.

Here is another thought. Why don't you just get the realtor to come out and do a market analysis for you assuming that the house is in excellent condition and you may not even need to hire an appraisal? You have a low volume house. They are not hard to determine the value of. They are easy to put number on.