Before you invest in a rehabilitated property, it’s important you request a professional appraisal from an appraiser with your interests in mind. Corrupt sellers, brokers and agents have been known to collude and misrepresent the value of the renovations made to a home that’s been “flipped.” In other words, without making any substantial improvements to the property, they’ll significantly raise the price and won’t disclose how the renovations account for the increase in price.
Fortunately, it’s not difficult to protect yourself. Hire a professional appraiser to ensure the property has had the improvements put into it to justify the asking (or agreed upon) price. Our RIA services are also cost effective: we perform “drive-by” appraisals, sanctioned by housing giant Fannie Mae, which can be more affordable than a full appraisal with an interior inspection. When combined with the expertise of a licensed home inspector, you should be able to buy with the confidence that everything is as it’s been represented by the seller.
When considering a rehabilitated property, having both an inspection and an appraisal is prudent. An inspector will tell you what within the structure is presently non-functional, what repairs may still need completing, and whether there are any safety risks/concerns within the property. Once your inspection is complete, a real estate appraiser can then translate those repairs into dollars. This is the soundest way to know that the property is worth the selling price. This ensures that you’re not overpaying, and that, if for whatever reason you needed to immediately re-sell the property, you’d be able to recoup your investment.
As an investor, you deserve to know what you’re paying for. If you’re in need of both inspection and residential appraisal services, we can offer you both together at a discounted price. For more information on the inspection services we provide, visit our RAI Home Inspection site, or contact us today!