Investors’ view of the appraisal can change dramatically depending on their view of the investment situation. The perspectives to consider are purchasing, refinancing, purchasing with financing, or at the sale. The results from the appraisal depend a great deal on the preparation of the party seeking the appraisal and the specific goals they are motivated to achieve based on their perspective as already noted.

Before delving deeper into the perspectives, what should the investors over arching intent be as a buyer? The buyer should always seek to confirm definitely and avoiding perspective error that the investment value is within bounds they and their other equity partners expect. This objective should be precedent to other objectives that having satisfied this requirement are successors to the process.

Before going further, appraisers generally require a relatively standard set of basic information including:

Three years financials, Past Taxes, Copies of past appraisals, Copies of past property condition reports, Pro Forma financials from the new owners, The business plan if available, Planned Improvements and costs, and Contact information for the actual property visit

The well prepared investor will also provide:

Known sales supportive to the plan; Best known comparable competitive properties including information about amenities, floor plans, management, rents, etc; Any known recently completed appraisals and the results of that activity; Local economic news and information that the appraiser may have; Input regarding why certain areas are or are not useful economic indicators for the property; and Marketing plans

Additionally, the new purchaser should explain the management plan, past history of such management, and how the management plan affect the results normally. Finally, the appraiser should understand clearly your view of value and how you reached that conclusion given current facts.

With these steps taken, the investor is in the best position to gain the investment information from the appraiser to either support their sale or to support a purchase. In all cases, this preparation may offer significant advantage over the principal opposite your goal whether they are selling or buying and you are buying or selling.

By: Blake Dale Ratcliff

About the Author:
Mr. Ratcliff is a US Naval Academy graduate and past class president, former Marine Officer, residential / multifamily investor and and founder of the International Residential Real Estate Investors Association – http://www.irreia.org.

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Most lenders require you to purchase a home appraisal before the mortgage can be closed upon. The appraisal will tell you how much the appraiser believes a piece of property is worth. The appraisal will look at things like the age of the home, the condition of the property, and the condition and values of other pieces of property in the same area.

The appraisal amount

The appraisal amount is the most important aspect of the appraisal report. Your appraisal amount can make or break your sales agreement and mortgage. If your home comes in valued less than the sales price of your home, the buyer of the home can decide that he won’t pay as much for the property and the sales price can be renegotiated. If the home comes in valued at greater than the sales price, the buyer might just be getting a great deal.

In addition, your mortgage lender decides whether to allow you to borrow money based on the appraisal. If the appraisal amount is less than the mortgage amount, the lender might decide that the property is being sold at too high of a price for the worth of the property and not allow the buyer to acquire the loan.

Your neighborhood side-by-side comparisons

Take a look at the other properties in the neighborhood. These comparisons will be made in detail in the appraisal. You’ll be able to look at other properties in your neighborhood with a similar number of bedrooms, bathrooms, and square footage, and how much those homes are worth. This neighborhood side-by-side comparison is the main indicator of how much your home is valued at.

Negative adjustments

Negative adjustments on the property are things like fewer than a normal number of bathrooms for a house’s size or a one-car garage when most homes in the area have a two-car garage. If you look at the negative adjustments on your home, you may decide you want to do some remodeling to increase the home’s value.

By: C.L. Haehl

About the Author:
Mortgage Sanity provides help and information for people about many different aspects of the mortgage process. Visit http://www.mortgagesanity.com for help with your mortgage loan.

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