So you've decided to purchase a rental property. Perhaps this is one of your first purchases, or maybe you're a landlording pro. Either way, getting an accurate appraisal from a trusted company will be one of the most important parts of the process. But how do you know the appraiser is legitimate or if the appraisal of your potential purchase is accurate? Check out our top five tips for following through with an appraisal:
Nothing beats local:
- Does the appraiser frequently work in your area? Make sure that your appraiser knows not only the city, but the community where your home is located. If they live near the neighborhood, even better.
Research their credentials:
- Check to see if your appraiser is state licensed or certified, how long they've been in business and if they belong to any trade organizations.
- What better way to know how the appraisal goes than to be present while it's happening? By being there, you can ask questions, notice his or her methods and take note of anything you find inaccurate.
Talk it up:
- When speaking with the appraiser, explain why you are interested in this specific property. Maybe it is in an excellent school district, near plenty of community recreation facilities or has great interior details; whatever it is, it never hurts to mention these great things.
Check their work:
- As an investor, you probably have a pretty good idea about the value of the home. Do the research yourself, and if the appraiser's value is significantly different than your own, gather comps, ask questions, and if necessary, get a second opinion.
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