Posted by Kristine-CA on March 28, 2006 at 11:41:53:
I’ve never paid for an appraisal upon selling. Is that common where
you are? It’s the buyer’s job to determine value. Most often, of course,
it’s their lender that will require the appraisal.
You don’t need to justify price. You need to make sure that your
asking price after improvements are comparable so that you can sell to
a retail buyer. Trouble with comps is that you most likely won’t be able
to tell what properties were sold with major improvements. Where I
am, the comps are not very different for remodeled vs unremodeled.
It’s a hot market and the comps reflect square footage and major
amenities–not whether the bathroom had new tub and tile. You may
want talk to some appraisers in your area to get clear about this.
My guess is that selling as-is may be more profitable, but I don’t know
your market. If you figure out your bottom line in regards to profit
goals AND time you want to spend, I think you’ll be able to figure out
which way is best for you. Kristine
Would 2nd appraisal be beneficial? - Posted by Drew Brown
Posted by Drew Brown on March 28, 2006 at 11:17:47:
My question of the day is this: I do some work on a property or two that I have. After this, I want to put them on the market. Would I need to get another appraisal so I can justify my asking price or would it be better to find out the comp prices in that neighborhood and sell as is?
Hey there, this one hits me close to home since I make a living as an appraiser. You sound like you are trying to maximize your selling price but don’t know if a full appraisal report is needed since the buyer will need a new one anyway. Appraisers can perform consulting work in addition to filling forms out for banks! Find a good one locally who will work with you in researching the market and determining an asking price that should be supportable when the buyer needs the appraisal for their bank. You can also work something out where the appraiser helps evaluate a property before you jump in with both feet. That would probably be the most beneficial for an investor, at least from my perspective. Better to know what you are getting into before committing.
Most improvements in a house add less to sale price than they cost. Many add nothing. Unless there are problems (such as a damaged bathroom or floor) that would amke buyers lookelsewhere. It depends on your local market.
You can use CMAs from the MLS system to see what things are actually selling for (this is often different than what the seller is asking). An appraiser will use a method similar to this. This can help you set the price, but the buyer actually determines the value either by making an offer or moving on to the next property.