25: What Appraisers Look For and What it Means for You with Investor/Appraiser Josiah Smelser

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 19 August 2020

⏱️ 74 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Here, by popular demand: the Appraisal Episode! Josiah Smelser – podcaster, two-time BiggerPockets Real Estate Podcast guest, and Certified General Appraiser – is here to answer your many questions, and he delivers the goods. We played some questions from the Rookie Request Line and touched on subjects like which data and documents you can provide an appraiser, how to challenge an appraisal, and how to keep your emotions in check when estimating After Repair Value. Whether you're a rookie who plans to flip, BRRRR, or invest in rental properties, understanding how properties are appraised – and the mindset of an appraiser – is key to coming out on top. So enjoy this episode, and tell Josiah what you think in the show notes at biggerpockets.com/rookie25. In This Episode We Cover: Getting inside the mind of an appraiser What information you can and should provide an appraiser The top 3 variables that determine value Approaching the appraisal process with "data and humility" How appraisals vary by market The Sales Comparison Approach vs. the Income Approach Kitchens, bathrooms, and added square footage How doing unpermitted work can come back to bite you Why you should never outright ask an appraiser to come back with a specific number The right way to challenge a low appraisal And SO much more! Links from the Show Real Estate Rookie Facebook Group Felipe's Instagram Ashley's Instagram BiggerPockets Podcast BiggerPockets Podcast 382: No Money Down BRRRR Investing with Josiah Smelser (Part 1, Recorded Pre-Coronavirus) BiggerPockets Podcast 382.5: Surviving When the BRRRR Hits the Fan with Josiah Smelser (Part 2, Post-Coronavirus) CBRE Rookie Podcast 11: Using Home Inspections to Spot “Deal Killers” and Negotiate Better Prices with Rose Buckley USPAP BiggerPockets Glossary Grant Cardone Rookie Podcast 23: From Dave Ramsey Disciple to No-Money-Down Real Estate Investor with Sarah Brandenberger Craigslist Zillow Trulia Instagram Check the full show notes here: http://biggerpockets.com/rookie25 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the real estate rookie show number 25
0:05.0	I've been to some properties that are way over improved and it's really sad because the owner's like well I put
0:14.7	this into it the sad response to that is that doesn't really matter what matters
0:19.5	is what the market is valuing this property at. Hey, what's going on everybody?
0:28.0	This is Ashley Care and I am here with my co-host Felipe Mejia.
0:32.0	And today he is a little upset because nobody
0:36.1	brought up him flexing or his biceps.
0:39.1	Why are we talking about this? I asked Josiah in the show. I was like,
0:43.5	just like, you're gonna leave that out, right? We're not gonna talk about this time.
0:46.0	I'm trying to break that curse. That was the error, before we started recording, the one
0:50.9	thing he wanted to ask Josiah. Josiah, who is our guest today, is an appraisal.
0:57.7	He's also invests in real estate.
1:00.1	And I was really excited to have him on the show because he's given some great tips on how to actually
1:04.9	add value to your property when you're going to do the birth strategy or you're going to refinance or even for lines of credit,
1:12.0	you know, part of everyone's strategy is how do I get my money back, right?
1:15.3	I mean, that's what you're thinking about.
1:16.3	And Josiah dropped some huge nuggets on how to truly add value to your property.
1:21.1	Yeah, and he just goes through how to actually read an
1:24.4	appraisal report and what are the different kinds of formulas and you find out my new
1:28.7	nickname too. So make sure you guys listen and at the end he gives actually a really great tip just for buying
1:37.0	rental property in general or buying any kind of property for flip whatever really great
1:41.8	tip as to how to find that hidden value.
	...

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