How to Truly Analyze ARV before ordering an Appraisal

[Angela Hansen]

Hi everyone!

I wanted to see how those of you who work with HML are able to analyze the ARV before you ask your HML to order an appraisal (out of my pocket)?

I have a duplex (2 bed, 2 bath) that is rented on one side. Asking price: $92,000. Good area, great schools.

It is fully functional. The only repairs I can see are cosmetic. New carpet, paint, fence around the back yard area maybe, new lighting, a few windows. My HML wants me to come up with a scope of work in order to increase the ARV so that hopefully it appraises and I can be covered by the 70% ARV. It appraised for $120,000 back in 2014, and they haven't done any updating since then besides painting the exterior.

Has anyone experienced this before? Should I be planning out renovations to try and get the ARV higher for the appraisal? How would one be able to analyze before going under contract?