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Updated over 4 years ago,
How to help appraiser include value added through rehab?
Like many people here, I live in constant fear of an appraiser coming back with a crazy low number for any rental property refinance. I recently did about $55k of work on a property with a $50k purchase price so I am into the property for ~$105k. Our repairs included a new roof for a 2 car garage, new bathrooms, kitchen, drywall, flooring, electrical and more. The house was a DUMP before.
I want to make sure whoever comes to inspect the house takes into account what we did to make it a more livable space. I understand that there is a fine line to walk here since I want a higher value but appraisers try very hard to be objective.
I have provided my loan officer with all pre and post rehab pictures, as well as our line-by-line scope of work and a signed contract with the rehab company for doing that amount of work.
Does anyone here have any strategies for helping an appraiser see the value we have added?