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Some recent home appraisal auctions on eBay:
What's It Worth: A Home Inspection and Appraisal Manual | US $3.00 (0 Bid) End Date: Sunday Sep-12-2010 16:16:12 PDT Bid now | Add to watch list |
 | US $0.99 (0 Bid) End Date: Monday Sep-13-2010 8:53:25 PDT Bid now | Add to watch list |
Most popular home appraisal eBay auctions:
What's It Worth: A Home Inspection and Appraisal Manual | US $3.00 (0 Bid) End Date: Sunday Sep-12-2010 16:16:12 PDT Bid now | Add to watch list |
| US $0.99 (0 Bid) End Date: Monday Sep-13-2010 8:53:25 PDT Bid now | Add to watch list |
 | US $199.99 End Date: Wednesday Sep-22-2010 19:31:02 PDT Buy It Now for only: US $199.99 Buy it now | Add to watch list |
Some recent home appraisal auctions on eBay:
Home Appraisal Service Business Plan Bundle | US $39.95 End Date: Thursday Sep-30-2010 17:08:43 PDT Buy It Now for only: US $39.95 Buy it now | Add to watch list |
home appraisal eBay auctions you should keep an eye on:
Appraisal of Historic Homes in Indiana | US $2.50 End Date: Thursday Sep-23-2010 7:53:36 PDT Buy It Now for only: US $2.50 Buy it now | Add to watch list |
 | US $2.50 End Date: Thursday Sep-23-2010 7:55:21 PDT Buy It Now for only: US $2.50 Buy it now | Add to watch list |
 | US $199,999.00 End Date: Saturday Sep-25-2010 7:48:20 PDT Buy It Now for only: US $199,999.00 Buy it now | Add to watch list |
Home Appraisal – Determining The Home’S Value For A Short Sale Package
One of the most important aspects of the short sale business is determining the value of the property you have under contract. Itâs impossible to formulate your offer to the short sale lender without knowing the home appraisal value of the property you are interested in. Likewise, knowing the appraisal value of the property is just as important to the loss mitigator at the bank. The loss mitigator must establish an appraised value for the short sale property so he has a baseline price for negotiation. The appraised value of the property establishes the playing field on which we negotiate the short sale price of the property.
Getting Property Comparisons The best way to determine the home appraisal value of a property is by using property comparisons (comps). Look at the properties in the same area of the short sale property.
You can get these comps with a little effort. There are a few ways to find market value comparisons for your area:
⢠Subscription programs (one is Haines, a subscription service on disc)
⢠Multiple Listing Service (MLS) if you have access
⢠Network with a realtor who can pull comps for you
⢠Free comps services on the Internet
Itâs not recommended that you use the free market comparison services found on the Internet. These free services are worth about as much as you pay for them. If you have to spend some money getting comps, thatâs a good thing. It means that someone is actually doing research behind the website or program.
Finding Home Appraisal Value: An Example A busy real estate investor may outsource their home appraisal needs to another company or a certified FHA appraiser.
When a deal comes in the real estate investor will email the FHA appraiser, the address and ownerâs name. In about 24 to 48 hours the appraiser will send back a limited desktop appraisal with three comparison prices on other similar sold properties and the market value that the appraiser has determined for the property that the company is interested in. The appraisal may also include some additional information and a map.
This appraisal gives an idea of the market value of the property in comparison with other distressed properties in the area. When looking for comps, donât look for sales of well maintained properties, instead look for comparisons of other properties in foreclosure, REO properties, or corporate-owned properties.
Be Prepared to Pay for it!
Companies spend money getting their comps because they want good, accurate market value comparisons. When you are figuring the budget for your short sale business, remember to allocate some funds to pay a company or a certified FHA appraiser for that home appraisal. Itâs well worth it to pay for a home appraisal so that you have accurate comps from third person parties or neutral parties outside of your short sale deal. You present their appraisals as objective evidence to convince the bank to accept your short sale offer.
Factoring in Cost Estimates for Repairs The physical condition of the property is just as important as comps in a home appraisal. See if there are any repairs to be made on the short sale property. Make notes of whatâs wrong, take photos, and get construction estimates for the cost of repairs.
When you do your cost estimates remember that the bank will be making the repairs, not you. Get cost estimates from a general contractor the bank would typically hire.
The best way to get cost estimates for your home appraisal is to hire a certified home inspector. You can look one up in the yellow pages. Thereâs also an organization called the National Association of Home Inspectors (NAHI). NAHI has high standards and finding a home inspector affiliated with this organization is a good way of making sure you get a thorough inspection.
A typical home inspection can take two and a half to three hours. The inspector gets up on the roof, checks the crawlspace and goes over the home with a fine-toothed comb. On completion of the home inspection the inspector hands over a report that can be 20 pages with detailed information about the property defects. Home inspectors may also takes photos and provide detailed cost estimates.
Paying a home inspector to get cost estimates is a great way to calculate the home appraisal value for your property. Youâll know exactly whatâs wrong with that house because youâve gone to a neutral third party expert.
Getting the Cost Estimates: An Example Dan Shields is a typical home inspector. Heâs a member of NAHI and does all of the home appraisal evaluations and repair estimates for many investors.
Dan states that a home inspector will start an inspection from the outside of the property to get a look at the big picture. Heâll check the roofing, gutters, siding, and windows to make sure theyâre properly installed and flashed. He will also check out porches, columns, etc.
From there the home inspector enters the home for the interior survey, to document built-in amenities, appliances, and flooring. He will next go to the mechanical room and check the heating/cooling package and plumbing. Finally, the home inspector will check the attic and find the insulation factor for the short sale property, literally working from the ground up on the home inspection.
A Brokerâs Price Opinion Value
When you complete your home appraisal and submit the short sale package to the bank you will be assigned to a specific loss mitigator who will want to determine their own estimate of property value.
The loss mitigator orders the bankâs appraiser to go look at the property and get a brokerâs price opinion (BPO) or market value. Sometimes itâs done by a realtor, sometimes an appraiser. Itâs your job to be the contact person that the appraiser goes through to get into that property. Itâs very important that you meet the appraiser at the property to convince him your home appraisal value is about the same as the BPO value.
When you meet with the bankâs property appraiser let him know the property is in foreclosure and that youâve been working with the seller to try to do a short sale with the bank. Get that point across immediately.
You don’t want the meeting with the bankâs appraiser to be a confrontation. This is first impression time, so just be yourself and let your personality shine. Shake hands with the property appraiser. Get to know him for the five minutes before you start shoving your material on him.
The whole BPO process will probably take less than 15 minutes. You have 15 minutes to let your personality shine so make it your best effort.
During the BPO When you go out to these appraisals, take three things; a copy of the Real Estate Purchase Contract with your offer amount, your market value comparisons and a copy of your home inspectorâs report
Try to present the material in a conversational tone. Ask if heâd like a copy of the offer you have made on the property and so on. If itâs an appraiser, he will always want a copy. Realtors are a different storyâyou can never tell what theyâre going to take. Just ask and see what heâll take from you. An appraiser will always take the property inspection report because itâs a good, neutral indication of property damage.
Let the appraiser know that your Purchase Contract has been at least preliminarily accepted by the bank and thatâs why he is appraising the market value. Youâd be surprised how often the bankâs appraiser doesnât even realize the property is in foreclosure.
You also want to share comps with the home appraiser. Most of the time, appraisers have pulled comps before they go out to the property, so you may be able to share comps to get an idea of the BPO. Make sure the appraiser knows about specific problems with the property such as; mold, termites, or foundational problems that are not readily apparent. This is something the appraiser wonât spot during his 15 minutes with the property.
Once you get these three documents into the hands of the bankâs home appraiser chances are higher that the bankâs BPO comes in close to your home appraisal value. When you get a good home appraisal value and cost estimates on that short sale property. Youâll have armed yourself with the best tools in convincing the bank to accept your low short sale offer.
Pick up more information about real estate shortsaling at Real Estate Investor.com. This is the place to go for the latest real estate news and advice. Youâll find a network of other real estate investors ready to help you out, along with free articles, blogs, contracts and documents for your use
Colin Egbert is an experienced
Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business.
Most popular home appraisal eBay auctions:
What's It Worth: A Home Inspection and Appraisal Manual | US $3.00 (0 Bid) End Date: Sunday Sep-12-2010 16:16:12 PDT Bid now | Add to watch list |
| US $0.99 (0 Bid) End Date: Monday Sep-13-2010 8:53:25 PDT Bid now | Add to watch list |
| US $199.99 End Date: Wednesday Sep-22-2010 19:31:02 PDT Buy It Now for only: US $199.99 Buy it now | Add to watch list |
Why is a Property Appraiser Important to the Home Buying Process?
Why is a Property Appraiser Important to the Home Buying Process?
It doesn’t matter what part of the home buying process you are a part of — the buyer or the seller — a real estate appraiser is important to you and necessary to the home transaction. An impartial appraiser will come in and check out the home and property and come up with true value. The appraiser does this in order to protect the seller, buyer and lender, all of whom are involved in a home purchase. Here are some reasons why real estate appraisers are important.
Discovery of the True Value of a Property
A seller will naturally want to take the home and promote how much it is worth. That’s because it will make for a higher selling price, which if it works out for the seller will be more than what was paid for the home. For a buyer, there is a desire for the knowledge that the price is right. And the lender wants that true value to know that the money loaned out is worth it and it is a good business move for them to fund. If a true value was to come in lower, then it might not make for a good business deal for the lender, especially if the home may not sell for a profit in the future.
With the impartiality of the appraiser, all parties can expect an honest finding of the value of the property, which is based on its neighborhood, its market, its improvements and the size of the home.
How it Works for the Buyer
If you are the prospective buyer, you will want to make sure you are getting something of real worth in your new home. With the appraisal, you get to see what that fair price is and from there you can decide if you want to spend money on it. If not, you can always reconsider what you want to pay for the property and could decide not to make the deal.
How it Works for the Seller
If you are a prospective seller, you want to discover the value of your home so you can make a fair selling price for your property when you put it out into the market. If you have a low valued home, you may change the cost of the home or make more improvements in order to increase the value.
How it Works for the Lender
As the lender, the bank is making a gamble by lending money to the prospective buyer. To the lender, determining the value of a home will enable the best possible contract with the buyer. Instead of giving money to the buyer for the price they paid, the lender knows the entire value of the home and can then assess the risk.
And that’s where the role of the appraiser comes in — assuring that the property’s value is right for all involved. Without the appraiser, the true value won’t be known, which impacts all of the parties who are touched.
This article is provided by LocateAppraisers.com (http://www.locateappraisers.com), an appraisal directory site that connects lenders and appraisers. Whether you’re looking for a New Mexico real estate appraiser, a Florida real estate appraiser, or a Washington real estate appraiser, the great tools at LocateAppraisers.com include everything you’ll need to find the best appraisal professional in your area.
Home Appraisal – Determining the Home’s Value for a Short Sale Package
One of the most important aspects of the short sale business is determining the value of the property you have under contract. Itâs impossible to formulate your offer to the short sale lender without knowing the home appraisal value of the property you are interested in. Likewise, knowing the appraisal value of the property is just as important to the loss mitigator at the bank. The loss mitigator must establish an appraised value for the short sale property so he has a baseline price for negotiation. The appraised value of the property establishes the playing field on which we negotiate the short sale price of the property.
Getting Property Comparisons
The best way to determine the home appraisal value of a property is by using property comparisons (comps). Look at the properties in the same area of the short sale property.
You can get these comps with a little effort. There are a few ways to find market value comparisons for your area:
⢠Subscription programs (one is Haines, a subscription service on disc)
⢠Multiple Listing Service (MLS) if you have access
⢠Network with a realtor who can pull comps for you
⢠Free comps services on the Internet
Itâs not recommended that you use the free market comparison services found on the Internet. These free services are worth about as much as you pay for them. If you have to spend some money getting comps, thatâs a good thing. It means that someone is actually doing research behind the website or program.
Finding Home Appraisal Value: An Example
A busy real estate investor may outsource their home appraisal needs to another company or a certified FHA appraiser.
When a deal comes in the real estate investor will email the FHA appraiser, the address and ownerâs name. In about 24 to 48 hours the appraiser will send back a limited desktop appraisal with three comparison prices on other similar sold properties and the market value that the appraiser has determined for the property that the company is interested in. The appraisal may also include some additional information and a map.
This appraisal gives an idea of the market value of the property in comparison with other distressed properties in the area. When looking for comps, donât look for sales of well maintained properties, instead look for comparisons of other properties in foreclosure, REO properties, or corporate-owned properties.
Be Prepared to Pay for it!
Companies spend money getting their comps because they want good, accurate market value comparisons. When you are figuring the budget for your short sale business, remember to allocate some funds to pay a company or a certified FHA appraiser for that home appraisal. Itâs well worth it to pay for a home appraisal so that you have accurate comps from third person parties or neutral parties outside of your short sale deal. You present their appraisals as objective evidence to convince the bank to accept your short sale offer.
Factoring in Cost Estimates for Repairs
The physical condition of the property is just as important as comps in a home appraisal. See if there are any repairs to be made on the short sale property. Make notes of whatâs wrong, take photos, and get construction estimates for the cost of repairs.
When you do your cost estimates remember that the bank will be making the repairs, not you. Get cost estimates from a general contractor the bank would typically hire.
The best way to get cost estimates for your home appraisal is to hire a certified home inspector. You can look one up in the yellow pages. Thereâs also an organization called the National Association of Home Inspectors (NAHI). NAHI has high standards and finding a home inspector affiliated with this organization is a good way of making sure you get a thorough inspection.
A typical home inspection can take two and a half to three hours. The inspector gets up on the roof, checks the crawlspace and goes over the home with a fine-toothed comb. On completion of the home inspection the inspector hands over a report that can be 20 pages with detailed information about the property defects. Home inspectors may also takes photos and provide detailed cost estimates.
Paying a home inspector to get cost estimates is a great way to calculate the home appraisal value for your property. Youâll know exactly whatâs wrong with that house because youâve gone to a neutral third party expert.
Getting the Cost Estimates: An Example
Dan Shields is a typical home inspector. Heâs a member of NAHI and does all of the home appraisal evaluations and repair estimates for many investors.
Dan states that a home inspector will start an inspection from the outside of the property to get a look at the big picture. Heâll check the roofing, gutters, siding, and windows to make sure theyâre properly installed and flashed. He will also check out porches, columns, etc.
From there the home inspector enters the home for the interior survey, to document built-in amenities, appliances, and flooring. He will next go to the mechanical room and check the heating/cooling package and plumbing. Finally, the home inspector will check the attic and find the insulation factor for the short sale property, literally working from the ground up on the home inspection.
A Brokerâs Price Opinion Value
When you complete your home appraisal and submit the short sale package to the bank you will be assigned to a specific loss mitigator who will want to determine their own estimate of property value.
The loss mitigator orders the bankâs appraiser to go look at the property and get a brokerâs price opinion (BPO) or market value. Sometimes itâs done by a realtor, sometimes an appraiser. Itâs your job to be the contact person that the appraiser goes through to get into that property. Itâs very important that you meet the appraiser at the property to convince him your home appraisal value is about the same as the BPO value.
When you meet with the bankâs property appraiser let him know the property is in foreclosure and that youâve been working with the seller to try to do a short sale with the bank. Get that point across immediately.
You don’t want the meeting with the bankâs appraiser to be a confrontation. This is first impression time, so just be yourself and let your personality shine. Shake hands with the property appraiser. Get to know him for the five minutes before you start shoving your material on him.
The whole BPO process will probably take less than 15 minutes. You have 15 minutes to let your personality shine so make it your best effort.
During the BPO
When you go out to these appraisals, take three things; a copy of the Real Estate Purchase Contract with your offer amount, your market value comparisons and a copy of your home inspectorâs report
Try to present the material in a conversational tone. Ask if heâd like a copy of the offer you have made on the property and so on. If itâs an appraiser, he will always want a copy. Realtors are a different storyâyou can never tell what theyâre going to take. Just ask and see what heâll take from you. An appraiser will always take the property inspection report because itâs a good, neutral indication of property damage.
Let the appraiser know that your Purchase Contract has been at least preliminarily accepted by the bank and thatâs why he is appraising the market value. Youâd be surprised how often the bankâs appraiser doesnât even realize the property is in foreclosure.
You also want to share comps with the home appraiser. Most of the time, appraisers have pulled comps before they go out to the property, so you may be able to share comps to get an idea of the BPO. Make sure the appraiser knows about specific problems with the property such as; mold, termites, or foundational problems that are not readily apparent. This is something the appraiser wonât spot during his 15 minutes with the property.
Once you get these three documents into the hands of the bankâs home appraiser chances are higher that the bankâs BPO comes in close to your home appraisal value. When you get a good home appraisal value and cost estimates on that short sale property. Youâll have armed yourself with the best tools in convincing the bank to accept your low short sale offer.
Pick up more information about real estate shortsaling at Real Estate Investor.com. This is the place to go for the latest real estate news and advice. Youâll find a network of other real estate investors ready to help you out, along with free articles, blogs, contracts and documents for your use.
Colin Egbert is an experienced
Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business.
