When you’re selling a rehabbed house, the buyer’s lender is going to send out an appraiser to see just how much it’s worth. That will tell the lender how much money they can be comfortable giving the buyer—but how does the appraiser arrive at his or her estimated value of the house?
How Appraisers Compare Your House
The appraiser will look at hundreds of factors to value the house you’re selling, from the age of the HVAC system to the quality and condition of the tile in the bathroom.
Once the appraiser has a finger on the house’s pulse, he’ll compare it to recent sales of similar homes to find out what buyers are likely willing to pay in your market.
What Are Comparable Sales?
In order to qualify as a comparable sale, at least for valuation purposes, a house must have:
- Sold within the last 3 to 6 months
- Be near the subject house (usually within a quarter-mile or half-mile)
- Similar square footage
- Similar age and construction
- Similar quality and condition
- Similar lot size
The appraiser will compare your house to several other comparable houses and make a determination on what your house should be worth under the condition it’s in right now.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.
Read our frequently asked questions and take a few minutes to learn about the hard money loan process.