Paying for an Appraisal

[Jeremy White]

Is it important to pay for an appraisal aside from knowing ARV based on comps if I'm going to buy, fix, and sell? Y or Y not?

[Christopher Phillips]

@Jeremy White

Interesting conversation...

If you are buying distressed properties all cash, it's up to you if you wish to have an appraisal done. If you don't have an appraisal conducted, then you have to be good at pricing your investments.

If you are using financing, the lender will order an appraisal.

Once you do your rehab and go to sell, it's up to you on how you want to price the house. There are really two prices: the market value of the house, and the strategic marketing price of the house.

You set the price where it will attract tours and offers, not necessarily where the "value" price might be. An appraisal will tell you the theoretical value, but it won't tell you have to market the home.

To market a home, you can speak to other investors in the area or to real estate agents.