Posted by Paul_NY on February 06, 2000 at 23:12:45:
As a former appraiser, I’ll say you’re right on the money. Giving the appraiser a number to work with IS key.
Is there a way I can learn what appraisers know? - Posted by Tony James
Posted by Tony James on February 06, 2000 at 07:05:16:
I would like to have the same knowledge as an appraiser so that when I view a house I will know what it will appraise at so that I wont go crazy waiting to find out what it will appraise at. Also I will know what repairs to make to get the most money I can out of it.
It’s not nessesary. - Posted by Mark-NC
Posted by Mark-NC on February 06, 2000 at 11:31:01:
Tony,
You do not have to take a course to get the information you are looking for. You have access to most of same information they do. If you are looking for a way to determine values Check out JP Vaughn’s article in the how to section called “How to determine market Value”. It is an exellent article.
Just as a couple of notes. Appraisals are not an exact science. I have had as much as $14,000 difference on a $50,000 property from different appraisers.
I find that the key to getting the appraisal you want is to ask for it. What I mean by that is when you order an appraisal, give the appraiser a number to work with.If you just tell them to appraise it, who knows what you will get. If you are trying to get a higher apprasial to make the deals work try to stay within the the higher price per SG FT on the homes in the area when you are trying to determine your estimated values.When you are doing this you still have to take into consideration the condition of the home and the homes sold.
You see, the object of the apprasier is to get you the number you need to make your deal work for you they want your business. If you are within reason you will get it even if you are pushing the envelope slightly. You are not asking for anything illegal but if the appraiser can provide the comps to make it work, you will get it, If they can’t you wont.
As far as estimating repairs, most of the appraisers I use make estimated guesses. If you don’t know how to estimate repairs I would use a contractor for estimates they will be more accurate.
The point I am trying to make to you is, The course is not nessesary unless you really would like to take it. Once you start doing deals in the same area you will become familliar with the comps in the area and it will be really easy to quickly tell if a property is a deal or not right off the top of your head.
Mark
Re: Is there a way I can learn what appraisers know? - Posted by CarolFL
Posted by CarolFL on February 06, 2000 at 11:26:58:
Tony, let’s first agree that we are talking residential, not commercial, RE here.
Second, taking a class is a great idea, but the info is available, and it is not rocket science.
Read an appraisal. They give the criteria they use for coming up with their values … a certain distance from the subject property, a certain time frame for the comparable sales, and they then detail the “plusses and minuses” from the comps to the subject property.
Via an online service or RE broker, you too can access recent sales in the area, of comparable properties. You too can physically check the properties out … at least the exterior … and if you choose you can speak with the owner or tenant, or try to do so, about the state of the property. You too can see if this was a foreclosure or other extenuating circumstance which might skew the real value. You too can see how long the subject property has been on the market and how long the average property of similar ilk is on the market in that area.
Tony, by the time you have done this several times in your target areas, you will / should have a really good feel for the values.
Our appraisers occasionally surprise me - up or down - and I occasionally go to bat (with comps in hand) for the values I think should prevail.
With a good appraiser, you should be able to discuss these things, and how you arrived at your conclusion, and how they arrived at theirs. I don’t tell them how to do their job - but rather let them know I’m always ‘learning’, and value their expertise.
When I make a good case, I usually get some ‘cooperation’ from them on the final value. When they make a better case, I don’t!
Income property - ie multi family properties - is slightly different because market rents and operating expenses come into play. But going through a few appraisals done in your area should give you the elements needed to come up with a pretty accurate idea of what those appraisals will be also.
Whew.
You’d probably just as soon go take a class. It will, however, tell you to do all of the above anyway!
Good luck.
Carol
Re: Is there a way I can learn what appraisers know? - Posted by Steve (NY)
Posted by Steve (NY) on February 06, 2000 at 08:51:20:
I took an appraisal course this fall and am glad that I did. It really opened my eyes to the true value of realestate.
Contact your local board of Realetors; they should be able to tell you when and where courses are offered in your area.
-Steve
Re: Is there a way I can learn what appraisers know? - Posted by Robert McNeely
Posted by Robert McNeely on February 06, 2000 at 08:04:00:
Your local community college should offer a class on appraising as part of the required RE license courses.