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?