Investing in rehabilitated residential property can be a wise decision. With real estate values on the rise and demand for homes increasing, the potential for impressive returns is evident.

Rehabilitation projects often involve purchasing dilapidated properties and investing considerable time, effort, and resources into their transformation. The result is often an attractive, ready-to-sell property that fetches a substantial return on investment. This process not only creates opportunities for investors but also expands the housing options available in a high-demand market.

However, before you invest, protect yourself by engaging a professional real estate appraisal service that prioritizes your interests. A standard procedure involves an appraisal for the lender, conducted by an appraiser collaborating with sellers, brokers, and agents. Unfortunately, some properties are “flipped” for significantly higher prices than their recent purchase price, without substantial improvements or permits to justify the hike. As the investor, you could be left in a precarious situation if the value doesn’t align with the price. Shouldn’t you ensure your investment is sound?

Protecting yourself is straightforward. Engage a professional real estate appraiser to verify that the property’s improvements warrant the asking price. If you’re purchasing multiple properties from the same seller, it’s even more crucial to have independent appraisals conducted by a professional who represents your interests. Fortunately, there are cost-effective strategies for safeguarding your investment. We offer “drive-by” appraisals, endorsed by Fannie Mae, which can be more cost-effective than full appraisals involving interior inspections. When paired with the expertise of a licensed home inspector, you can purchase with confidence, knowing everything aligns with the seller’s representation.

It’s prudent to always arrange an inspection before closing a deal. Equally essential is obtaining an appraisal to understand the property’s value. An inspector provides insight into the property’s functional integrity, necessary repairs, and potential safety concerns. An appraiser translates this information into dollars. Is the rehabilitated property worth the asking price? If unexpected circumstances arise and you need to sell immediately, could you recoup your investment?

As an investor, you have the right to this knowledge. Safeguard your interests with the assistance of a professional real estate appraiser.