Appraisers can offer specific consulting services for almost each and every participant in any real estate transaction. For a person buying property they usually are represented by a Real Estate Broker or Agent. A real estate appraiser may be something you should consider as either an alternative or as an addition to your home search process. An appraiser is naturally good at interviewing people for what they want in a home, and with a professional appraiser’s extensive real estate experience they have the ability to make a buyer’s search more effective, easier, and quicker with little to no stress. If they wish an appraiser can provide an opinion of market value on the home they pick, prior to making an offer. This allows you, as a buyer, to feel completely confident in an offer and any subsequent appraisal performed as part of the mortgage process. If you are a cash buyer, such an appraiser consultant may be your best option as an appraisal is the most accurate way to ascertain a market value. In addition to all the extra services an Appraiser Consultant can provide the same information a buyer’s real estate agent can provide.
For a Seller an appraising consultant is the perfect partner to a Listing Broker. Some Listing Brokers even recommend that a Seller procure an appraisal as part of the listing process. An Appraiser Consultant can offer extensive services to the typical seller, in addition to an appraisal. Perhaps as a seller you want to know whether or not finishing the basement or attic, converting a half bath into a full, or adding a walk-in closet to a bedroom will bring in more value than cost when you sell your home. An appraiser can give you these answers along with suggestions as to what is worth spending money on prior to a sale. An appraiser that is FHA Approved can perform an inspection for FHA/HUD Compliance allowing you, the homeowner, to know whether your home qualifies for FHA Financing which may be a marketable feature for your Listing Agent to tout. An appraiser is an expert of market value or real estate and will know what your local market area is willing to spend for specific amenities. It is this line of ability that the modern day Investor is interested in. Investors like to buy a home “cheap” that needs some work, have the work completed or spend some sweat equity doing it themselves, and then sell the home for a profit (how much they sell the home for minus the cost of home and the cost of renovations.) An appraiser can help you, the investor, find a home to purchase, renovate, and sell for a profit.
Why take unnecessary risk? Hire an appraisal consultant and have an expert that can assist you on the entire investment process. Real Estate Appraisers are impartial experts which means you can rely on their answers to any appraisal problem because they advocate for no one or nothing but the contributory market value of real estate or part of. Whether you are an Investor, Seller, Buyer, Real Estate Agent, or Homeowner an Appraiser Consultant could be the answer to your real estate problem. Call a local Real Estate Appraiser today. Click on the contact information to speak with someone at JD Appraisal within 24 hours!
A FSBO is a property For Sale By Owner, implying that the property is not marketed by a Broker/Agent, and may not be listed on MLS. There are options between “selling it yourself” and hiring a broker to sell the home for you. I would recommend asking about “entry only listings” and any other options the agent would be willing to offer. If you do decide to sell the property yourself I would recommend contacting a local appraiser.
As discussed in earlier posts an appraiser offers services beyond an appraisal of a property (an opinion of value) such as consulting. An appraiser can be hired to appraise the home, providing an estimate of market value as of the inspection date. Depending on the market trends the value may be very helpful for preparation of a FSBO. What if the market is declining, or appreciating?
An appraiser can also provide a forecast as supplement to an appraisal. In this process an appraiser will analyze historical market trends, and interpret current market trends to determine the likely future trend of value. Using this information combined with the likely marketing time (also based on analyzing of market data) can lead the appraiser to render an opinion of the Anticipated Sales Price which can help a homeowner price their FSBO. An appraiser can take into account any specific restrictions, such as a target marketing time of 3 months, that may affect your FSBO.
Another service of consulting that a homeowner may consider to support a successful FSBO transaction would be cost benefit analysis of possible upgrades and remodeling. This can actually be a great service for homeowners in general, but is particularly helpful for a FSBO. Perhaps you just gained ownership to a home that is not in the best condition, and you don’t know whether putting in new carpeting, redoing the bathroom, and replacing the rotted back deck benefit you financially when selling the home.
Using the example of the home in less than good condition above an appraiser would look at recently sold homes in your market area, taking note of condition between similar sales and how that condition affect sale price. Perhaps there are REOs (Real Estate Owned, property foreclosed on and owned by the lender) selling in your subdivision in similar condition. It comes down to how much of a discount a buyer would typically seek for a home in the Subject’s condition as opposed to a home in renovated condition.
After figuring the buyer’s reaction the appraiser would then perform a cost estimate for the work, and compare the costs to the price at sale. If it costs $10,000 to rehab the home, and the market pays $20,000 more for a rehabbed home than it would be cost effective to perform the repairs. An appraiser has the knowledge and expertise to provide you with these vital answers. A proper valuation, with forecast if needed, and some quality consulting will be well worth it to any homeowner selling their home as a FSBO.