Thursday, January 17, 2013

Preparing For the Residential Real Estate Appraiser Whether For a Single Family Home Or Apartments

Investors' view of the appraisal can change dramatically depending on their view of the investment situation. nnThe perspectives to consider are purchasing, refinancing, purchasing with financing, or at the sale. The results from the appraisal depend a great deal on the preparation of the party seeking the appraisal and the specific goals they are motivated to achieve based on their perspective as already noted.SErobotnnBefore delving deeper into the perspectives, what should the investors over arching intent be as a buyer? The buyer should always seek to confirm definitely and avoiding perspective error that the investment value is within bounds they and their other equity partners expect. This objective should be precedent to other objectives that having satisfied this requirement are successors to the process.nnBefore going further, appraisers generally require a relatively standard set of basic information including:nnThree years financials, nPast Taxes, nCopies of past appraisals, nCopies of past property condition reports, nPro Forma financials from the new owners, nThe business plan if available, nPlanned Improvements and costs, and nContact information for the actual property visit nnThe well prepared investor will also provide:nnKnown sales supportive to the plan; nBest known comparable competitive properties including information about amenities, floor plans, management, rents, etc; nAny known recently completed appraisals and the results of that activity; nLocal economic news and information that the appraiser may have; nInput regarding why certain areas are or are not useful economic indicators for the property; and nMarketing plans nnAdditionally, the new purchaser should explain the management plan, past history of such management, and how the management plan affect the results normally. Finally, the appraiser should understand clearly your view of value and how you reached that conclusion given current facts.nnWith these steps taken, the investor is in the best position to gain the investment information from the appraiser to either support their sale or to support a purchase. In all cases, this preparation may offer significant advantage over the principal opposite your goal whether they are selling or buying and you are buying or selling.

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