Investing in residential property? You need to know EXACTLY what the property is worth now and what it could be worth later. Do you know what renovations pay the highest return for the market area? Should you "Renovate and Sell" or "repair and rent"? How do you protect yourself against illegal "flipping"? The value Pro's at Summit are on your side. Ask us. We live and breath this stuff.
If you're considering investing in the rehabilitation of a residential property, you could be making a smart choice. Real estate values have been climbing at the same time demand for homes has been increasing — an impressive combination. The key is information. Asking questions now, ensures profits later. Youve found a home, but have you considered... What are local homes going for? What are the local marketing times? What is the competition doing? If I sell in six months, what value could I expect? These and a hundred other questions are the difference between a profitable investor and one that sits on a un-marketable house month after month with no buyers in sight!
Often, people and companies that sell rehabilitated real estate buy a dilapidated property, put a lot of money and sweat equity into it to make it attractive to a buyer, and then reap the reward when the property is sold for significantly more than the original buyer paid for it. There's nothing wrong with this; on the contrary, it makes more housing available at a time when it's in demand. And as noted, it's often a good investment choice for the eventual buyer.
But before you invest in a rehabilitated property, you should obtain a professional appraisal, from a value pro at Summit performed with your interests in mind. Normally an appraisal will need to be performed on behalf of the lender, by an appraiser working closely with sellers, brokers and agents. Too often lately homes are "flipped" for considerably more than they were recently paid for without any substantial improvements to justify the higher price. You'd be the one left holding the bag — shouldn't you have someone on your side making sure your money is being invested wisely?
It's easy to protect yourself. Hire a professional appraiser from Summit to ensure the property has had the improvements put into it that justify the asking (or agreed upon) price. If you're buying more than one property at a time from the same buyer, it's even more important to have them appraised by a professional working for you, instead of another party to the transaction. There are cost effective ways to protect yourself in an investment into many properties. We perform "drive-by" appraisals, sanctioned by housing giant Fannie Mae, which can be more cost effective than a full appraisal with an interior inspection. When combined with the expertise of a licensed home inspector, you should be able to buy with confidence that everything is as it is represented to be by the seller.
Now that you have hired the best appraisers in the area and have a warm and cozy on value, it's time to "kick the tires." An appraiser is a" value" pro, a home inspector is a "home" pro.
It's the smart move to always have a home inspection done before closing on a property. An inspector will tell you if everything that is present in the structure is functioning properly, what repairs may need to still be done, and whether there are any safety or soundness issues with the property. An appraiser can translate that into dollars. As rehabilitated, is the property worth what it's selling for? If something unexpected happened and you needed to sell right away, would you be able to recoup your investment?
As an investor, you need and deserve to know. Protect your interests with the help of a professional appraiser. Call us today. Our experienced staff has the answers your looking for.