Live with Fast Track Remodeling and NextGen Appraisals!

By 2017-11-14Radio Show

RPRE 226 | Fast Track Remodeling

Right Path Real Estate Radio with Tom Perry and the guys of Fast Track and NextGen Appraisals! Get the answer to your question that’s keeping you from taking action at succeeding today!

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Live with Fast Track Remodeling and NextGen Appraisals!

I have my brother, Jeff, and my good friend, Elijah, my brother from another mother. They’re with Fast Track. Fast Track is the premier. I don’t know anybody that’s better known than you. It’s funny, I went to follow you on Facebook, “Who’s a good general contractor in Houston?” Your name always gets in the list. I always wanted to put your name in there, but I never do because I’m a little bit biased, but someone always puts your name and it always ends up on the list several times. I’ve never heard anything negative said about you.

If you’re wanting to do a buy, fix and flip, or you want to do a buy and hold, remodel, you’re an investor, whether new or experienced, if you’ve ever had contractor problem before, you can put those problems behind you. You can call Fast Track (832) 742-9992 or go to FastTrackRemodeling.com.

Welcome, guys. Anything new in the world of remodeling?

Most people know that there’s been a lot of busy-ness.

One of the things that I was asked was, “What kind of lead time?” Last I had checked with you, the number of days I’d said is about nine days out.

It’s more than that.

How far out is it?

I would say it’s probably at least two and a half to three weeks.

When I say nine days, I’m not talking about nine calendar days. I’m talking about nine business days, so it was like two weeks. If it’s gone to three weeks, that’s about fifteen business days. You’ve got fifteen business days’ worth of work in front of you. It’s not a concern because you shouldn’t be calling Fast Track on the day that you’re closing, saying, “I want you to come out and get a bid.” You should do all of that. You get a property under contract and rarely are you closing a property in two or three days. Occasionally that’s going to happen because you might be buying from a wholesaler and titles had already been out. If you’re marketing direct to sellers, then you’re going to negotiate with that seller, and then you’re going to put that property under contract, typically 30 days. I was just making an offer on a property and the seller said, “How quickly can you close it?” I’m like, “We can close as quick as ten days. What are you looking to do?” She goes, “We were thinking mid-December.” I’m like, “That’s a piece of cake.” If I had it under contract now and knowing that I’m not closed until mid-December, we could time it.

People got to be prepared no matter what. Not just us, everybody basically.

Anybody that’s good. There’s probably some new guy that just came in from Mississippi or something like that. I don’t mean to bash Mississippi people. There might be somebody from out of state that just decided, “There’s opportunity there. I want to start a contracting business,” but don’t know anything about it. Who would do that?

We were talking about that, you’ve got to factor that into your holding costs and everything else.

I can’t go out to do bid right away, maybe almost a week now.

You’re a week booked out?

Yeah.

You’re not the only guy that goes out and give bids, right?

No. He’s probably about a week and a half.

That’s fantastic.

We’re not saying that we can’t do it. It’s just that if people wait, it’s going to even be longer.

That’s the thing, just plan ahead. You sequence your trades in a particular order. For example, if let’s say a tile needs to be laid today, you’re not calling your tile guy this morning and saying, “Jose, come out and lay tile today.” You call him several days in advance saying, “We’re going to be ready on Thursday for you to be there for tile.” You’re planning it out in advance. As an investor you should be doing that also. You should know that after I put the property under contract, the next step I need to do is get a contractor involved. There’s normally going to be fifteen to thirty days in there anyway. If you are running fifteen days out, then you should sequence it just right.

A lot of people can do what you said at the beginning, just put it into your numbers. Put it in basically two, three, four weeks just so that you can know that you have some extra time there, not including the job being worked on. If people are doing that and they have that mindset, then they’re not going to feel like something was taken away from them when they’re told they got to wait a week. If you could put that expectation a bit higher, it almost feels like, “Then I can’t work with you,” and then you go try to find someone else and maybe they are not any better. Who knows? They may be just as far out or they may promise something they can’t deliver on unfortunately. There are things that we have to bear in mind. This is uncharted a little bit for us.

We are dealing with having delays on things.

What’s the material that you all are seeing in this?

Trimming doors.

Interior doors?

Yeah. Everybody’s trying to get them all at the same time. Somebody we know made a big switch and it has affected some things.

The good thing is if you’re an investor and you’re focusing on investing, and that’s the thing that you’re a ten at, let someone that’s a ten at general contracting, someone that knows the doors, the manufacturers, who’s switching what, all those kinds of things, you don’t have to deal with that. Take that burden off and that’s one less thing to worry about. When you want to call Fast Track, it’s (832) 74- 9992 or FastTrackRemodeling.com. What else do you want to add?

When people are looking at these houses, they are concerned if it’s been sitting for a while, it wasn’t remediated properly, and so on. Some of them are looking to us for that certification expertise. There are companies that do that. That is not necessarily us.

For those who don’t know, the people that do the certification and have to write the plan of work can’t be the same company that does the contracting. Even the contractor has to be certified if you’re going to do that remediation. You don’t do that. You come in after it’s been remediated and all that.

The mold remediation, we don’t do. We will remediate wet stuff.

There’s a difference between remediating wet stuff versus remediating mold stuff. We don’t want to get into the liabilities of mold and all that stuff because that’s a whole another topic and I’m not giving legal advice as it relates to mold. It seems like people make a much bigger deal about mold. What’s the difference between mildew and mold?

I’m not going to get into all that, but there is a difference for sure. I do think that certifications, I stick with it when we’re dealing with mold houses.

There’s a standard with asbestos, like how much asbestos can be in the air before it becomes hazardous and things like that. There’s not a standard for that in terms of mold.

You can find a company that does the testing as far as before you even get a contractor involved. If it’s a house you’re interested in, pay the fee to have somebody come and look at the house. That will tell you ahead of time to where you don’t get stuck with a house that needs $25,000 worth of remediation.

RPRE 226 | Fast Track Remodeling

Fast Track Remodeling: If it’s a house you’re interested in, pay the fee to have somebody come and look at the house.

If you’re concerned about opening up that door, maybe first you would hire a company that does the dry report testing first, as opposed to the mold testing. That can open up a can of worms sometimes. If you’re looking at what’s dry, they can also make their suggestions at that point. Maybe there’s something else here that needs to be addressed at that point.

We’re relatively early in some of the construction things that were unique. People were taking away the moisture barrier. What’s the workaround?

We figured that out. We’re using T-Ply and sliding it in between the studs and then cutting holes, making notches where you can basically make a tab. Screw the tab into the stud and then cutting holes for where the brick ties are, and being able to put the brick ties, attach them back to the studs, and then just tape those with window tape, like the exterior window tape that we use on exteriors.

It seals it all up and gives a good moisture protection. It keeps it dry.

That’s the best solution we found because it covers the entire stud face.

The city of Houston doesn’t have a code for anything like that, do they?

I don’t know about a code thing, but I’m sure they want to have a moisture barrier when it’s missing.

That sounds like a good work around.

I’ll post a video on our Facebook page in the next couple of days about that.

If I’m an investor and I see that that’s gone, is there a way to price that? I look at what I’m going to spend to have that done, is it a price per sheet? Is it a price per linear foot? How are you pricing that?

I got with Mike about that the other day. I have to go back and look. I can put it on the video.

I assume that you’re doing it on the entire downstairs in. You probably have to do it whether it’s siding or whether it’s brick. Let’s say a house is 30 x 40, it’s got 1,200 square foot.

If it’s siding, you’re not going to be able to do it. We are not going to be able to because the siding is actually fixed to the stud.

What would you do there?

It might have just felt paper. There’s probably not a brick space in between because it’s attached to the studs. Most of the time, it’s on the brick. We’ve seen that being removed.

Then we just need to look and see a linear foot on the brick.

Those are 4 x 8 sheets of T-Ply.

It’s going to be priced per 4×8 sheet. What are you charging to go in and re-rock a house? How much per sheet are you charging?

We kept the same pricing, which is $55 for hang, tape, and float, and then there’s the small management fee on that, maybe 10% to 13%.

$60 to $62 per sheet, something like that. FastTrackRemodeling.com, (832) 742-9992. You have before and after pictures on Flicker. They can go straight to the FastTrackRemodeling.com website and there’s a link to Flicker.

They can get right on there.

Can I schedule a meeting to have you go out and estimate a house through the website or do they need to call?

There should be a link to be able to do that through the website, or you can call the office and then we’ll get one of us to callback.

I bet you have a Facebook page.

Yeah, we do, @FastTrackRemodeling.

Thanks for coming in guys.

Thank you very much. Have a good day.

 

I’m joined by Michelle Emler. She is with NextGen Appraisals. That’s NextGenAppraisals.com, (713) 346-9911.

If you’re looking at a property that you’re iffy about the numbers, the easiest way to do it is give you guys a call. You’ll do a desktop to give a professional opinion.

If you’re on the fence, sometimes the value is clear and getting an appraisal is a formality. I get that. There are a lot of times, most of the time, where value is not as clear. Definitely get an appraisal at that point, desktop, full appraisal. Just have someone give you their independent opinion of what that value is. That’s the whole purpose of an appraisal.

How long does it take? We were talking to Fast Track. Due to the flooding and all that, they’re about a week to ten days on coming out to give an estimate. They are about fifteen days out from the time that you say, “Yes, let’s get going,” to the time that they can start a job. How far out are you?

We still have the same turn time. We still have five full business days for a full appraisal. We are capable of rushes on a case-by-case basis. Just give us a call or email. Our desktops are two business days.

How far away do you go? Does it take longer to do a flooded house versus a non-flooded house?

The only hiccup we’re seeing where we might need some extra time is if it’s a multiple fluid property or it has some other high-risk indicator, like it’s in a flood way, something that’s not necessarily in the norm that is going to cause someone to hesitate before they purchase that house. We’re going to have to do the same thing and hesitate before we give a value.

What are some of the strangest appraisals that you’ve seen? We won’t call them horror stories, but since Harvey, what are you seeing out there?

I haven’t seen any real horror stories yet with flood houses. I’m personally having an emotional reaction to going through these devastated areas. I’ll have to take a step back and put my emotions in check and go back to that independent appraisal mindset. I haven’t seen anything out of the norm per se with the flood house. It sounds terrible, they all look the same.

There are some that still have some debris in the yards and stuff like that.

There are some entire neighborhoods that are still going through, and that’s the part that I’m having a hard time with. How do I account for that? I know it’s going to happen. If you’re flipping a house, it’s most likely going to happen before you go to flip it, but you’re not asking me to give you a value two months from now. You’re asking me to give you a value today. I’m thinking if a buyer is coming through and seeing all of this debris everywhere, are they going to have the same logical opinion I did or, “This will eventually be cleaned up,” or are they going to think more on the negative side of “There’s a lot of vacant houses and crime rates.” It’s difficult for me to quantify that in an appraisal right now.

As an investor, that’s the difference. Sometimes people will say, “When you’re running comps versus when you’re getting an appraiser involved, what’s the difference there?” I’m looking to see what’s this house going to be worth, not today, but after I rehabbed it. We’re talking about four months, five months, six months down the road. What’s it going to be worth then? What you have to take into considerations is there’re a lot of factors that when I look at, “A house down the street sold for X number of dollars,” or, “In the neighborhood sold for this,” but it doesn’t take into consideration that my house is on one of the main access roads to the neighborhood or I’ve got high-tension power lines in the back of my house, because you don’t necessarily look at that.

We take it into consideration to an extent.

You’re looking more historically. I’d rather go back five years and see what did the house on the busy street sell for because then I realize that the marketplace has already priced that busy street into the house price.

We take that in consideration, too. We also take in consideration that there’s a difference between backing toward power lines versus a school versus a manure factory. Those are very different scenarios, different sounds and smells per se, so that’s going to have a different impact, a negative impact, on value. Just recently we did an appraisal where we had two properties, same street, but only one backed to the golf course. The golf course was also acting as the floodway to carry water away, and so houses that were on the golf course flood first. Houses on the golf course flooded tax day, but none on the golf course did, but they all flooded this time. We were able to accurately determine that that golf view actually wasn’t adding any value because it was, pardon the pun, being washed away with a higher risk of flooding.

You got a plus for the view and a minus for the fact that it floods first.

There are higher risks of flooding, I guess you could put it that way, too.

When you’re talking to a seller and he goes, “I should sell my house for more because I’m right on the golf course and I’ve got the view,” “I hear what you’re saying, Mr. Seller, but your house is also the first to flood.”

Your house is now the one that’s flooded twice versus these other guys that only flooded on Harvey.

What are you saying about the houses that are along Buffalo Bayou, for example? The bayou was carrying a lot of water towards the Gulf of Mexico. That’s the direction that it heads. To say that we got a lot of rain that time, that’s the understatement of the year. Hurricanes drop rain, but no hurricane has ever dropped as much rain in the history of all hurricanes in the United States. There are houses along the bayou, like in Memorial and stuff like that, they’ve never flooded in 40 plus years of a person living there. They back up to the bayou. They’re not even in the flood plain and yet they flooded. They got three feet of water in them. It was because of the reservoir being released. How do you evaluate that?

I had an instance like that. You would treat it the same as a flood property. Typically, even if they’ve never flooded, they’re probably still in a flood zone. They already had that stigma of being a risk of flooding. You need to find comps that were in a flood zone then, because it now has that stigma of being a risk of flooding property. You need that same flood risk.

Is there a percentage you would take off?

No, not off the top because it’s different for every neighborhood and every market in every price range. Like Bel Air, that specific neighborhood, there’s people leaving and listing their homes as well, but there are also buyers that are trying to trade up into that neighborhood. I’m wondering is it going to have a negative impact on value because sections of that neighborhood were already in a flood zone? Some of them have flooded twice now or even three times because they flooded with Allison as well. It’s difficult to say. We can’t predict the future, but if there are no more major floods for the next three years, everything’s going to equalize back out. If it starts becoming a trend where we have this major flood event every year, that’s going to be wet.

RPRE 226 | Fast Track Remodeling

Fast Track Remodeling: We can’t predict the future but if there are no more major floods for the next three years, everything’s going to equalize back out.

We won’t know until next April, May or June?

Yeah, probably in the next eighteen months if we have no flood.

This particular house, I don’t want to give the exact area or anything like that because I’m still negotiating with them, but their pre-flood ARV, in my opinion, was about $495,000. They were trying to sell the property in the $550,000 range. They had gotten an offer of like $500,000 but it was contingent on the buyer selling their house. I thought $495,000 is a pretty good pre-flood ARV, then I took off 15% straight off the top. Now I’m around for $420,000 as an ARV. Then I look at how much repair it needs and I calculate my holding cost and I calculate the profit I want to make, I’m down around $225,000 as an offer price. There’s as-is property selling in the $320,000 range, but they’re not investors. They’re the retail buyers that want to trade up to get into this neighborhood. They like the schools, those kinds of things. I can’t compete with that guy. As an investor, I can’t compete with the guy that wants to live in the house. That establishes a comp and then as-is value, because that’s what you’re looking at. I can’t pay based on that because that guy is not going to have an exit strategy cost. He’s not going to have his holding cost. He’s going to have construction costs and then he’s got a nice new house and if he spends $100,000 on the rehab. Now he is all in for $420,000 and he’s in at retail. I’ve got other costs.

There’s some 70 something houses that have been recorded as being flooded houses with Harvey. There’s actually more. That question’s being left blank in MLS, but there’s such a wide spread. You’re seeing that where these investors are going in and getting good deals and able to rehab it, and then you’re seeing the top end almost retail practically for a flood house. When you see that, when everything’s spread that far apart, I can’t predict the future. I don’t know what’s going to happen with these values in the future.

The ones that we’re making offers on, they’re off market deals. You’re not going to see what we’re paying for the property as a comp, which is probably good and bad in terms of establishing values for investors. In years past, you could see, “An investor bought that one,” and you can see what the investor paid and then you’d see it fixed up. Now, there are different price points based on did an investor buy it? Did a retail buyer buy it? When I say retail, it’s got to be someone because you can’t get financing on these houses, so it has to be a cash sale, hard money sale, or private money lender sales, something like that.

It will be someone with the means to buy it. If it’s a retail side, it’s probably not a hard money lender, someone with cash.

Hard money lenders won’t lend to an end-user owner occupant. They only lend on investor homes.

I’m talking to Michelle Emler about appraisals. If you’ve got an appraisal question, put your fear of calling behind you. Call (713) 785-1817. Step out there, ask a question, or come to the book of faces, and ask a question.

I remember when I first started the radio show, I wouldn’t say that I was nervous because you get nervous when you’re talking about stuff that you don’t know anything at all about and you care how you look. Two things, if you’re talking about something you don’t know about and you don’t care how you look, then that’s pretty easy to do and you’ll do just fine. If you’re talking about something that you know, then I don’t think most people get too nervous about that.

It’s easy to talk about something that you’re an expert at.

I remember when we started the radio show, we started February of 2016.

That’s funny because the first time I was on with you was in March.

You came to the studio.

It was like a celebrity experience. I was like, “I’m on the tenth floor,” or something like that.

Which is like our experience now.

This is also very luxurious, don’t get me wrong.

I remember the video that we were doing back then. In fact, I don’t even think we were doing Facebook yet. We started out doing Facebook just off of our phones. Now, the fact that we can do Facebook and YouTube and we have the green screen, it’s amazing.

I got my logo. You can’t touch this.

We’ve changed a little bit. We’ve started doing radio advertising and we’re on AM 610, we’re on the Eagle and stuff like that for Right Path. They’re promoting our free events. We just recently went and spoke to the talent that’s doing our radio spots, doing live reads, things like that. It’s different when you go into a studio like that but the audio is still just as good.

It’s great, it’s fine. This is closer to my house, so it’s all good.

It’s also funny when you meet the real DJ, that’s all they do, that’s their profession and how animated they are. It’s almost like you feel like they’re getting ready to go like, “Sunday, Sunday, Sunday.”

We sound so boring in comparison.

What else are you seeing? I see tons of opportunity, but I’m an experienced investor. I can go in and buy a house that somebody was living in up until this most recent flood and they could have sold that house for $185,000 all day long for a 2,100 square foot, four-bedroom, two and a half baths, two car garage in a nice neighborhood, good schools, good jobs, all of that in a nice, safe, clean neighborhood. Then it flooded and now I can go in and buy that house. They had flood insurance, they have a mortgage, they’re going to get $150,000 that’s going to pay off the mortgage and I’m going to give them $87,000 for their house. They’re able to walk away, go plant seeds someplace else, plant roots, all that. I put $30,000 into the rehab. I’ve got $185,000 rental house. That’s not the price range I would normally want to buy. I mean that’s a major upgrade for the price. It’s $1,600 a month rental.

That’s almost the strategy because there’s more of a need for rentals than for retail buys.

I’ll be all in for $117,000.

Rent it out for a couple of years and then sell it if you want.

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Fast Track Remodeling: It’s always nerve wracking when your rehab budget exceeds what you’re buying the house for.

Why not keep it?

Yes, but there’s a bunch of stuff where you can modify that loan.

Is there any way I can lose money on that? Is it ever going to be worth less than $117,000?

If you have to get interior foundation.

Even that, that’s $10,000 or $15,000, I’m getting a great deal.

You are getting a great deal.

I can do that over and over. I don’t think there are two or three of those great deals out there. There’s hundreds. There’s thousands.

The difference between you guys and what I see with other investors is you all have the confidence to walk away from a deal if the numbers don’t work. You already have gone into the deal, pre‑determined of what that number needs to be.

You can do it on the fly. I had a guy call me yesterday. He had a house up in Conroe. It’s right on the water and he basically said, “So and so referred me. He used you a lot when you were with Fast Track. I’m a broker. He works for me.” It’s always a red flag to me when somebody, an agent or a broker or something like that, wants to sell a house to us. I’m like, “Why don’t you just put it on MLS? Why are you selling it to me? You’re not going to give it to me at the number that I want.” He goes, “What would you give me?” I’m like, “I’m not going to come out there because I don’t think I’m going to get in the ballpark, but I’ll just use your numbers. Let’s say that pre-flood, it was worth $600,000.” He goes, “It didn’t really flood but it’s right on the water. It didn’t really flood.”

What do they mean it didn’t really flood? It’s just one or the other.

“Did it get water inside it or did it not?” He goes, “It didn’t flood from rising water, but the way that the water flows towards the house,” and what he wants to do is he said, “If I had a berm in front of the house, then it wouldn’t have.” It didn’t flood all, it’s just that the water was channeled towards his front door. Does that count as a flood or not a flood? I mean, to me it sounds like it flooded, it got water inside. He’s completely demoed the house.

Technically, we could all put those aqua dams around our house and it will all be just fine and nobody lives in a flood zone. It doesn’t work like that in real life.

I said it’s got to be at least 10% to 15% less because it’s flooded. Let’s just take the low end of that at 10%. We’re now at $540,000, and then I’ve got 10% closing cost when I sell the house. I started working back and I said, “How much is the rehab?” and he goes, “I think the rehabs about $150,000.” I’m like, “How many square feet is it?” He said, “4,000-square feet.” I said, “Is it one storey or two stories?” He said “One story.” It’s like a 4,000-square foot, one-story house. I’m like “The problem is it’s probably closer to $50 a foot if everything has been ripped out.” That’s $200,000 rehab, and by the way, it’s in Conroe. Fast Track will go to Conroe but they charge extra to do it. There is no local Fast Track Conroe company, and so I’ve got to pay somebody an extra 10% or 15% just to go out there. Now I’ve got $220,000. I keep working the numbers backwards.

Now, you got to pay me to buy your house.

I’m probably best case scenario in the $180,000 range, but it’s $180,000 and I’ve got $225,000 in rehab and it’s going take me thirteen months. It’s eight months to do the rehab. It’s three or four months on market.

It’s always nerve wracking when your rehab budget exceeds what you’re buying the house for, too.

It’s just a numbers thing.

It’s just a cautionary thing.

We started getting down and he goes, “The lot value is like $260,000” and I’m like “Sell it as a lot because to rehab that house, I need to buy it for $180,000.”

I always have a hard time with that. The lot value in this scenario is $260,000 if there’s nothing on the lot.

It’s going to be priced if you’re tearing the house down, and apparently he had. It’s about $10,000 to tear that house down. The problem is he bought it for like $230,000 and he meant to rehab it, live in it for a while, and rehab it to his specs. He said, “I don’t disagree with any of your numbers,” but he said “I can’t sell it for that,” and I’m like “Great, because I can’t buy it.”

Talk to you in five months.

That’s great, but I can’t buy it for more than that. I’m willing to walk away. That’s the thing, I feel like I’m a kid in a candy store.

There is so much opportunity in front of your face everywhere, but it doesn’t mean you have to have all of it.

I have to have all of them that fit my numbers.

I’m joined by Michelle Emler. She’s with NextGen Appraisals. Her phone number is (713) 346-9911, and her web address is NextGenAppraisals.com. There’s probably a story behind the name of your appraisal company.

I’m a second-generation appraiser. I learned how to appraise real estate from my dad.

You didn’t want to call it Second Gen appraisals, and you couldn’t call it First Gen because that’d be your dad.

Surprisingly, coming up with a business name was the hardest thing I’ve had to do. I don’t know why I over-thought it so much. Finally, it came out of my brain and I was like, “Finally, move on.” It’s like so many decisions you have to wait on making before you have a business name. Literally, it was harder to name my business than my child, and it shouldn’t be that difficult. It took me like eighteen months to come up with a business name.

We’ve got a couple of different brands. We have the SellUsYourHouse.com brand. I can’t say that I took creative genius to do that. I was driving south of the Southwest Freeway at the Westpark curve and right where that little Mexican market is on the curve, there’s always a Texas Direct Auto sign that says, “Sell us your car” and I’m just like, “Sell us your car. Sell us your house will be just awesome,” and then I was able to buy that domain name.

Simpler business names are better.

In the modern 21st century that we’re living in, if you think of a company name, it’s like “Is the domain name available?” It’s not whether or not it’s available to the Secretary of State. Is this domain name available? Then you check the Secretary of State’s office.

There’s meaning behind the name. It’s still a good name.

Did you go with your dad to appraise?

No. My dad worked in the oil business. It was right before high school, the last year of junior high when he started learning how to be an appraiser. I remember going out to jobs with him when he was first learning how to do it and everything like that. I just thought it was the coolest thing in the world, but I also have this bad rebellious streak. When you get to know me, I just don’t want to do something if you ask me to do it. I was like “No, I don’t want to do it how everybody else does it. I got to be different.” I went off on my own, did my own thing, and eventually came back to learn how to do it. It’s been a great journey.

Do you have that rebellious streak in terms of how you do your appraisals?

No. You have to do the trend line with those, you can’t be a rebel.

What would you say are one or two things that a brand new investor should know about? You’ve been coming in as a vendor to our free events and people have been coming up asking questions because they don’t even know what purpose an appraiser serves.

There’s this misconception that appraisers pull comps. There’s a large difference between pulling comps, determining a value, analyzing a market, arriving at an appraised value, and delivering an appraise report with my signature, license, and insurance. There’s a big difference between saying these are three good comps and this is the value that I am holding myself accountable for. Investors have to learn the basics. You need to know what an appraiser is and you need to know what an inspector is. Some audience probably are like, “Duh, I know what an appraiser is.” Believe it or not, there is a starting point for everyone.

RPRE 226 | Fast Track Remodeling

Fast Track Remodeling: Investors have to learn the basics. You need to know what an appraiser is and you need to know what an inspector is.

Most people know what an inspector is but they don’t really know. What they think an inspector does and what an inspector actually does is different.

A lot of times people think appraisers and inspectors are the same thing. Appraisers do not inspect homes. I do not know the difference between all this other stuff. Jeremy presented at an event and he’s explaining this flood barrier between the brick and the wood and all this other stuff and if that’s gone and what you have to do. I don’t know stuff to that extent and that knowledge that Jeremy has. There are different levels.

They’re looking at the seventeen major systems. You’re not looking if the air conditioner new or old or things like that. Do you look to that level?

We take into account if the window is new, old, the condition of major aspects of the property, but I’m not going to individually turn on all of their water faucets and check the load.

Give NextGen Appraisals a call. That’s NextGenAppraisals.com, (713) 346-9911.

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