Appraisal Question - Posted by BR

Posted by BR on January 01, 1999 at 11:41:35:

For some stupid reason I thought the mortgage company would accept my appraisal. I guess I’ll just wait.

But, does it matter if the property is vacant/occupied. Right now the house is spotless. I’m afraid I might get someone who is not a great housekeeper and the appraiser will take this into consideration.

P.S. I’ll have a rental contract in place before applying for the mortgage. Move in date will be shortly after the appraisal.

Appraisal Question - Posted by BR

Posted by BR on December 31, 1998 at 18:09:58:

Just purchased 2nd property, all cash. I’m wondering what is the best way to handle an appraisal. Is it better to get an appraisal prior to renters moving in, or after? This home is small, approx. 900 sq. ft., no defects on inside.

Also, home is in need of roof repairs and minor cement work around the porch but I can’t get repairs done until spring. How much will this affect the appraisal? Should I wait until all repairs are made and then get the appraisal? At this time I’m ‘cash poor’ but I don’t have anything in the works.

All responses appreciated.

Re: Appraisal Question - Posted by Randy -IL-

Posted by Randy -IL- on January 01, 1999 at 11:48:49:

Your appraiser is required to report any prior sales of the subject property within one year. You paid for the property with cash, so unless you bought the property at a super size discount, the appraiser will see that you paid close to retail. An appraiser will analyze the prior sale and should compare the current condition of the house to the circumstances of the prior sale. You’ll need to explain to the appraiser how you arrived at your puchase price and how much of a discount you feel you received by paying all cash. It somtimes helps to find good comps to mention to the appraiser also.

As far as the minor repairs go, do they affect the rentability of the house? Are they big and obvious? Sometimes a strategically placed potted plant or throw rug will do the trick. The roof repairs are considered a vital part of the structure and must be in good condition for most lenders. If you don’t have the repairs done yet, simply have the appraiser do the appraisal subject to the completion of those repairs. Don’t expect a big increase in value for the repairs you decribed, especially the roof. It is expected by most buyers to already have a roof that operates correctly.

Why are you having an appraisal done if you already bought the place? Are you doing a refi?

Re: Appraisal? What’s the Purpose? - Posted by Irwin

Posted by Irwin on January 01, 1999 at 08:42:12:

You bought it, so I assume you have a pretty good idea of how much it’s worth. So why pay for an appraisal at this point. If you plan to mortgage it and get your cash back out, the lender will get its’ own appraisal, and completely disregard yours. Save your money.

Re: Appraisal Question - Posted by BR

Posted by BR on January 01, 1999 at 18:27:24:

Thinking about doing a refi. The house is small, I was wondering if an appraisal would be more or less if vacant or rented. I guess I’m concerned with getting tenants that have too much furniture making the place look cluttered or not well maintained. Vacant, the place looks really nice.

I believe I got it at a good price. Comps came in around 27k. Listing price was 25k. Offer by another party of 18k was rejected by seller. Realtor had to be reminded that he has to submit all offers. After being on the market 6 months, 18k cash started looking good! New homes are being built on the street behind this home. Hopefully this will increase the value of homes on this street.