You might have seen some home flipping TV shows and got the idea of making $30,000 in a few weeks. Well, this term “reality show” partially applies to this situation. A big part of your success will be getting the highest value on your flip appraisal.
That means if you are a real estate investor who flips houses, you can earn a good return over a comparatively short period of time. But it is only possible when you are willing to invest efforts and time – more than you see in the reality TV shows. And it all begins with investing in the right house and preparing it for the prospect buyers to make profits.
Whether it is your first flip project, or you have had experienced the process before, it is essential to prepare a plan for your flip appraisal to attract the prospect buyers. It is one of the critical components of the whole process that not only attract the potential buyer but also determine the market value of your property.
That is to say, revamping your flip into the right shape is mandatory. It is worth mentioning that appraisal influences the loan decisions lenders take for potential buyers.
If you want to make the most of your flip project and make a hefty profit, take a look at these steps to get your property ready for a home appraisal.
Steps to Follow to Prepare Flip for Prospect Buyers
Prepare Flip for a Thorough Clean up
Remember that a messy, squelchy, and cluttered home never appeals to anyone. It goes the same for the flip projects. Keeping it in top condition is of paramount importance, and cleaning plays a considerable role in that.
A well-kept property reflects a well-maintained house. If homeowners keep their house tidy, they also pay enough attention to fix maintenance issues. Cleaning up home before appraisal might sound a trivial task, but it creates a strong impression on the appraiser as he or she pays close attention to these minor details.
Look at the home with the appraiser’s eye and clean up everything. You can make an appraisal checklist and do work according to it. For instance, remove any clutter, weeds in the yard, toys on the floor, or useless furniture that is occupying space. Put some more plant pots, clean window’s exterior, hosing down sidewalks. This minor touch up can really add to the value of your flip.
Use the $500 Rule
It is essential to understand that your flip appraisal does not entirely depend on increasing or decreasing property value.
However, appraisers also measure the value of a flip in a $500 increment. If your property requires some minor repairs, they might hurt the flip appraisal. That means you need to fix these small issues such as non-functioning door handles and latches, worn-out carpets, and torn window glasses.
Moreover, make sure all the necessary light fixtures and tabs function correctly. Although appraisers do not thoroughly inspect or evaluate plumbing, they do notice if a flip project has these issues. So never hesitate to spend $500 to fix these minor issues and increase your property’s value.
Make a List of Upgrades and Repairs
Making a list of upgrades and repairs is one of the tasks you must do, whether you want an appraisal of your property or not. They earn some excellent points to make your appraiser notify the changes, along with other features of your flip project. Fireplaces, enclosed garages, pools, and other things like these can help you increase the home’s s market value.
Furthermore, when you show your appraiser a list of upgrades you made, it helps him understand how much time you have put into your flip.
The following are some of the common repairs and upgrades you can include on your list:
- Loose floorboard
- Rain gutters
- Leaky roof
- Functioning /fixed doorbell
- Dripping pipes or faucets
- Bathroom caulk
Invite Your Real Estate Agent and Realtor
In case you are not able to attend the flip appraisal, your realtor or real estate agent can be your voice behind you. Since they have expertise in the relevant field that puts them in the ideal position to represent you and discuss comparable flip projects in the same area and upgrades you have done to the house.
Inform about Your Neighborhood
This is another crucial step you can include in your flip appraisal process. Before you prepare your property for appraisal, do some research about comparable prices in the market to determine the right pricing range you should expect?
Show the appraiser a list of sales prices in the neighborhood. Do not forget to highlight the unique features such as a new shopping place in the area, a college that won an award, a new recreational park opened nearby, and many more like these. Make sure you talk about all great amenities in the neighborhood that add value to your flip project.
Complete Your Appraisal Process Early
There is no denying that selling a house is a stressful process. And when you get your appraisal process completed early, it not only reduces uncertainty but also allows you to make upgrades and repairs.
Add Some Additional Touch-ups
Once you are done with all the necessary preparations, it is time to focus on the elevate curb appeal of your house. Make a few changes in décor by neutralizing and decluttering to create a difference. For example, you can put lights in the walkway, place new handles or cabinets in the kitchen, or paint the walls.
This tip may sound bizarre, but not all appraisers like having you around all the time. When you follow your appraiser too much, he /she might think you want to create a distraction, or there is an issue in the home that you do not want them to notice. You have to be available to calm their concerns but give the space to do the job.
Final Verdict – Flip Appraisal
Overall, your flip project has to focus on the critical elements to target the potential buyers and increase the value. Thus, the guide can help you prepare your property for appraisal.