Why Real Estate Investors Need An Appraiser


29 Mar Why Real Estate Investors Need An Appraiser

There’s no question that real estate investors need a great team and specific knowledge to be successful. Many investors start building their real estate investing teams with a few key players. Then, as portfolios grow and diversify, it becomes important to add more critical resources to your real estate investing community for ongoing success.

Do real estate investors need an appraiser? The answer is yes! Real estate appraisers are essential for any investor looking to buy or sell a property. Today the property investing experts at Privy talk about why partnering with a good appraiser is crucial for long-term success.

What Does An Appraiser Do?

An appraiser can help you determine a property's "true" condition—separate from a seller's description in a real estate listing. With an appraisal, a real estate investor as an unbiased third party opinion about a property to help make informed decisions before closing.

Close-up Of A Mans Hand Filling Real Estate Appraisal Form At Home

Without an appraisal on every property, investors risk buying properties that require too much rehab to generate a profit on fix-and-flip investments or long-term buy-and-hold rental properties. In addition, a qualified appraiser helps investors make good offers on properties while reducing the potential of overpaying for a residential property with a sale price much higher than the reasonable value of the home.

What Are the Benefits of Adding an Appraiser To Your Real Estate Investment Team?

Now that you understand the importance of the appraisal process, how does it benefit real estate investors to add an experienced appraiser to their real estate investment teams? Partnering with one of these professionals helps build long-term property investing success in a variety of ways!

Analyzing the Exterior Condition of a Property

Qualified appraisers analyze the exterior condition of a property compared to the seller's description. This can help investors understand if a property needs significant repairs to external structures, like patios, decks, pools, or foundations.

Reviewing Interior Property Conditions

Your appraiser also assesses the interior condition of potential investment properties with a room-by-room walkthrough. They evaluate amenities such as a finished basement, square footage, and the ages of systems and appliances. They can also look for safety or health code violations that could be warning signs of a bad rental property investment before moving forward with the purchase of a new investment property.

Providing Insights Into Real Estate Market Conditions

In addition, property appraisers can provide valuable insight into the real estate market. They can give you an idea of what similar properties in the area have sold for, the current market conditions, and even what to expect when it comes to future real estate market changes.

Reducing the Risk of Fraud

Real estate appraisers can help reduce the risk of fraud in real estate investing. By providing an unbiased opinion on a property, investors can be sure they're making informed decisions about the potential for their investments in real estate assets.

Expediting Funding for Real Estate Investing

Many lenders require a satisfactory report from a qualified appraiser before approving financing for real estate investments. With an appraiser on your team and readily available, you can deliver a report to your lender without delay.

What Can You Expect From An Appraiser?

When real estate investors partner with a qualified and experienced appraiser, they can expect the following:

  • Detailed analysis of a property's exterior and interior features
  • An objective market valuation of the property

  • Insight into real estate market trends

  • A report accepted by most lenders

An appraiser's report usually includes a street map showing the location of the property, photos of the interior and exterior, explanations about calculating square footage, building sketches, and other relevant information used to calculate the property's value.

How To Find an Appraiser

The best real estate investing strategies include a well-rounded team of experts to support your success! When searching for the ideal appraiser, make sure they understand the types of properties you prefer. For example, an appraising expert that focuses on condos for short-term rentals might not be ideal for you if you prefer investing in single-family homes as long-term rental properties.

real estate appraiser taking pictures of property with phone

Work with your real estate agent to connect you with trusted appraisers. In some cases, you might need multiple appraisers when investing in different markets. Appraisers should understand specific market conditions and factors that influence residential property values.

Make sure your appraiser has the appropriate licenses and certifications to provide legitimate reports accepted by lenders. Lastly, ask about pricing and ensure that your preferred appraiser's fees fit within your budget.

Build a Real Estate Portfolio with Privy and an Experienced Appraiser!

When real estate investors have an appraiser on their side, they're able to make better-informed decisions about which properties to invest in and which deals to pass on. This leads to fewer costly mistakes and a more successful real estate investing career!

To begin (or continue) investing in real estate, you also need a reliable source that helps you find the best properties in your preferred markets. Privy works within your set criteria to scour the MLS in multiple markets, then deliver the best deals and investor insights to your inbox! Grow your real estate portfolio faster with the Privy Advantage. Reach out soon to learn more!

Support your long-term success with the right players on your team. Use our free "Assemble Your Real Estate Investing Team: A Worksheet!”


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