Foreclosure Appraiser
A Foreclosure Appraiser Can Tell You if You're Really Getting a Deal
Those who are interested in investing in real estate have surely come across advice saying that buying foreclosed homes is a great way to get deals. In some cases, this is actually true. However, in other cases, it is quite the opposite. The price can be outright set too high, the property may be falling apart by the time it hits the market, or a combination of the two.
There are a few ways to avoid the second possibility. The easiest is simply to drive to the property in question, get out of the car, and take a good look at it. In some cases, signs of deterioration will be so obvious that you immediately decide that it'll be too big or expensive of a project to try to fix it, and that the offer isn't for you.
If it passes the "take a look" test, it's time to get help from professionals to make sure there aren't any hidden surprises. This is where a foreclosure appraiser comes in. This type of real estate appraiser uses a couple of main methods to determine value. One is to do the basics that most real estate agents would, which is to compare the values of similar properties, the area's overall market, and other factors of this sort. The next aspect of foreclosure-oriented real estate appraisals involves checking the physical condition of the house, much like a home inspector does. All of the data is then combined to provide the foreclosure appraiser's final figure.
Note that there are several types of values that real estate appraisers can give. These depend on the intended use of the property. It can be valued according to its expected resale price, how much it would be worth to someone actually using it, its value as an investment, and more. Therefore, you should be sure to tell the appraiser which value you are interested in so that you get the right real estate appraisals.
Once you have the value in hand, you will have a much better idea of whether or not you should proceed with bidding on the foreclosed home. In some cases, you'll be able to jump in without hesitation, but in others, you'll be thankful that you got someone to value the property before you touched it.
One of the biggest red flags would be if the bank won't allow your foreclosure appraiser to take a good look. If this happens, consider it a solid sign that you should run away fast. Sellers don't try to hide good news.