Price of Appraisals - Posted by Metra

Posted by David Krulac on November 14, 2001 at 18:14:10:

Around here a written apprasial is about $250-$300 for a residential property SFH.

But you can do the same thing that an appraiser would do.

You check property actually sold/transferred in the last six months.

You would be looking for houses of similar size, condition, and located as close to the subject as possible. One source of that information would be the courthouse. Another source would be a real estate office with access to the multilist. There are also sources of “comp” , comparable property sales on the internet, and your local courthouse may be on the internet as well.
hth
David Krulac

Price of Appraisals - Posted by Metra

Posted by Metra on November 14, 2001 at 17:27:54:

I’m just getting started. I have NO MONEY. I found a hard money lender who is willing to loan me 70% of the market value of a rehab after it’s been brought up to speed. He is also willing to kick in the rehabbing costs. I found an ugly house in an well-manecured area. I want to find out the value of the property to determine if it’s flippible but I don’t know what to expect in terms of what I have to pay an appraiser. Not to mention an inspector to tell me all what work needs to be done. CS says you can eyeball key things yourself and determine the condition of the property?? How much is the cost of an appraiser?? Please help me on what to do at this point. Thanks in advance.

-Metra

Re: Trade secret… - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on November 15, 2001 at 18:30:47:

If you want to know how much an apprasil costs, ask an appraiser.

You see Metra, we do not know where you are. So David tells you a ballpark figure about around where he is, and we don’t know where he is either. So not knowing the location is a very definate disadvantage as well as not knowing the age of the property.

Some obvious things can be figured out by most any of us. An example would be that if the furnace does not work it will need to be fixed. Some lenders have different requirements than others, so you will need to keep that in mind when figuring out how you expect the house to be either sold or refinanced.

Your question needs a little work here. It is very much like me telling my barber that I have chest pains, and asking him how much it will cost me to go to a heart specialist and have that problem corrected.

Re: Price of Appraisals - Posted by dave(bal’mer)

Posted by dave(bal’mer) on November 15, 2001 at 15:44:33:

Metra,
There is a lot of information out there on flipping to rehabbers etc. It is advisable to read as much as possible. I am not sure if the info provided by CS is adequate enough to start flipping from. But I could be very wrong. Make sure you leave enough profit on the table for the person completing the rehab. I would also think having some financial cushion might be advisable as well, just in case things do not go perfectly. (But these are just my slightly conservative thoughts. I do not want to discourage you, it is very possible to do it with no money, it just frightens me personally not to have a backup plan.)

Prior to an appraisal there are other sources that can give you comp figures. A realtor is very good, their MLS system will let you know the original asking price, the days on market, SF, sold price, and much more info on the comparables.

For a very rough estimate go to:

http://list.realestate.yahoo.com/re/homevalues/
http://homeowners.homepricecheck.com/street.html

and go look at the comparable homes and compare them to your home in question and deduct anticipated cost to renovate and your profit and the profit for rehab, and you can start to get a rough idea.

For public records from you state go to:

And if the home looks good from these resources than bring out the appraiser, you might want to ask your hard money lender if they require the use of a certain appraiser.

I would look up some of Steve Cook’s old posts, I believe by typing Scook85, and he also has written a very comprehensive course on the subject of flipping.

Please note I am writing from my experience, which at this point is nothing more than study.

Best of Luck,

dave(bal’mer)