Warning: fsockopen(): php_network_getaddresses: getaddrinfo failed: Name or service not known in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337

Warning: fsockopen(): unable to connect to otter.topsy.com:80 (php_network_getaddresses: getaddrinfo failed: Name or service not known) in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337
Analyzing the Draft Appraisal and Preparing Information for the Final Document | International Residential Real Estate Investors Association
Monday January 22nd 2018

Join Us On

join the IRREIA linked in group

Analyzing the Draft Appraisal and Preparing Information for the Final Document

Managing completing an appraisal is often undermanaged by investors.  There are many considerations and actions investors must oversee during the appraisal process.  Steps prior to the appraisal, during the appraisal, and in preparing the final document is not a fire and forget exercise.

I will provide a checklist for our members of items to prepare for the appraisal and the  process that I recommend for assuring the appraisal is completed correctly.  Information that I’ve had the distinct pleasure of learning the hard way!  This checklist will be available to all of our members (free and paid).

I’ll be providing an appraisal management document for our paid members as well.  This will walk through preparing information for the appraiser’s  arrival, the tour, and post receipt of the draft appraisal responding to the results.

In the meantime, this post discusses analysis of the actual appraisal and responding to the document.

First, asking the appraiser to conclude they are wrong is a major error.  First, if you’ve selected a reputable and qualified appraiser, this is not the position you should take with the appraiser.  The key point is analyzing the appraisal and providing input showing overlooked points, misinterpretation of data, new information and minor but impactful changes you are making responding to the appraisal.

The appraisal will include the following sections:

  • Market Value Conclusions.  This should state the appraisal premise (“as is”, “as stabilized”, “as improved”, “as is liquidation value”), the date of the value and value conclusion.  This is important because the wrong date assumption can significantly skew the value results or the wrong appraisal premise can produce a very different result than sought.
  • Photographs of the subject property including aerial, outdoors, and in unit photographs.  This should include examples of all the various levels of improvement that you want to assure are in the appraisal.
  • A summary of key  facts including acreage, number of buildings, number of units, square footage, average square footage per unit, occupancy, expected credit loss, assumed capitalization rate, effective gross income, operating expenses, and net operating income.  You should verify that this information is accurate.  Small misinterpretations can change the results dramatically.
  • Other items the appraisal will often include are area analysis, neighborhood analysis, site analysis, improvement analysis, zoning, tax assessment data, highest and best use, sales comparisons, income valuation, liquidation analysis, and assumptions.  Again, verifying this information and assuring major information is not overlooked is critical.

“The IRREIA - Making residential real estate investing more fun and rewarding
through better education, tools, information, and networking!”


No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Reader Feedback

3 Responses to “Analyzing the Draft Appraisal and Preparing Information for the Final Document”

  1. [New blog]: Analyzing the Draft Appraisal and Preparing Information for the Final Document http://bit.ly/b53Y0U

  2. revacinc@roadrunner.com says:

    First Impresion of the Site:

    Good Job…

Leave a Reply

Warning: Illegal string offset 'solo_subscribe' in /home/irreia/public_html/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 304

Subscribe without commenting