Getting the appraisal # you want. $$

[Jim Sestito]

Hey BP,

Currently refinancing a property I bought (MA, Massachusetts), rehabbed, and rented.  Now it is time to cash out refi for down payment $ on the next property.

My lender quoted me a value and has now sent out an appraiser to confirm.  The appraiser works for the mortgage company so I feel good he will appraise the house to the value quoted.

Is this normally the case?  Are there any small improvements I can do in a week time to get a stronger appraisal dollar amount?

Any insight on the subject would be helpful.

Thank you - Jim 

[Russell Brazil]

Small things you do to your property will not affect the appraisers number. What you really need is to be armed with the appropriate comps for the appraiser to get to the number you need.  You will need 3 sold comps (get more in case he doesnt like your comps) that closed within the last 6 months, and that are within 1 mile of the property (or 6 blocks in cities). They  need to have comparable square footage, same number of bathrooms preferably, and be in similar conditions. The appraiser will also look at 2 properties that are either currently on the market, or under contract and take I think 98% of the value on the list price to show properties in the area are still selling for that price point.

The appraisal is one of the harder parts of real estate that people overlook. Agents deal with them all the time and know how to push that appraisal price in the right direction. Often case this alone can make an agents fee worth it, because they understand the comp and valuing process a lot better than the laymen. But in your case you are just going to have to educate yourself.