Having trouble with appraisals?

ATTN House-flippers: Are you having trouble with your house flips appraising? This overview will help you understand the loan process better as well as add some tips to make sure your homes appraise.

Heres the break down of the new guidelines lenders are requiring in order to process, underwrite and schedule the clear to close on loan appliacants.

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Typically most sales are FHA or even VA right now and for professional house flippers looking to get premium dollar for their premium property this is a daunting challenge. Appraisers are scared straight and value conscious concerning underwriting values. Due to high amount of foreclosures and the term "flipping" being thrown around like a loosely tied tarp on the highway, most appraisers are considering the purchase price of what the investors paid and then adding a small resale markup to the new adjusted selling price.

Showing the value: There are a few tried and true methods of getting the appraiser to "sway" your way on the side of value and unfortunately this comes back to the good ole schmoozing method. Meet EVERY appraiser at the home at the time of appraisal. Speak to them, build rapport. Show value by bringing your repair list, holding costs, finance costs etc. This is America after all and if you find a deal for one dollar and sell it for 1 million, as long as you show the VALUE you will have no problem collecting your return.

In addition to showing them the amount you paid and the amount you did in repairs you ultimately need to pull your own comps. Many appraisers subscribe to different MLS boards, premium zillow accounts, cyberhomes, etc. and usually miss valuable properties that you may be able to find.

Finally, create a packet or presentation. Show them you care, your here to help. They collect their fee whether you come in at sale price or not. Your reputation flys with you on the next sale or meeting with that appraiser (although very slim chance to get same appraiser twice). Print the listing of when you bought it. Highlight the date, price, square feet, bedrooms, baths, features, custom attributes, finished basements, custom patio or woodwork and do the same with your comparable value properties so they see the facts. Stay within your 90 day period and try to search more than just your MLS. County records often reflect private owned FSBO's that quite often get higher amounts and less paid fee's resulting in more net profit.

Place the original listing first, repair values, holding costs, pictures if your able, the new listing for your property, and then comparable sales with all highlighted features in a $.97 CVS clear cover binder and hand it to them.

Even bringing them a cup of coffee doesnt hurt...