If you are looking to make some money through re-financing your property, you’ll have to make use of a real estate appraiser. But you can do some work beforehand!
00:00 In this video today I’ll answer some questions about real estate appraisers!
02:23 What is a real estate appraiser?
A real estate appraiser is a person who has lots of real estate knowledge,
especially in your neighborhood. He can give you not only an estimate of how much your house is worth, but a very specific number of what he or she thinks your house is valued at in this current market.
03:38 How does a real estate appraiser do his work?
Well, there are a few steps in this process.
Step 1: He needs to have proven knowledge of the neighborhood the property is at,
so that he can do a serious value estimate of the property he is about to appraise.
Step 2: He needs to have insight in the value of the properties that have been sold in the last few months. He needs to know how much similar properties in the neighborhood have been sold.
Step 3: He’ll go through your home. First on the outside, how does the condition of the property look? And then later on the inside of the home. He’ll also check the state of your home, if it is in a good state or if there are any health issues being violated, like having mold in your home or any vermin in or underneath the home.
05:45 Why do we need a real estate appraiser?
There are many reasons why we need a real estate appraiser, but let me just focus on the 3 main ones for today’s video.
Reason number 1
As a buyer of a property you need to know the value of a property before being able to go to a bank and ask for a certain loan.
Reason number 2
As a seller of a property you would like to get the biggest bang for your buck. But think about what is reasonable.
Reason number 3
We, as investors, prefer not to sell our properties, so instead we liquify the money from our properties by taking out cash the moment the properties grow in value over time and while we pay off our mortgage each month as well of course.
08:47 How much does a Real estate Appraiser cost?
Well, I don’t know about your country, but in the Netherlands an average appraisal will cost you about 600-800 euros per property
The moment we talk about a unique building or structure, like a one of a kind villa or a huge farm. Then, appraisals could go up to 1000 euros per property.
09:48 Why it is important for you as a real estate investor to do a better job than the RE appraiser?
We need an official report from the real estate appraiser to be able to get a loan from the bank. We need the report to know if we can get the money or not. But, the appraiser costs money.
And we don’t want to be paying money if we know the property is not worth it beforehand.
Therefore, as real estate investors, you need to do your own due diligence, just like an appraiser.