Okay well the appraisal wasn’t THAT bad, but it’s something to consider when you are flipping houses. Especially in the $500k plus range, you’ll see why at the end.
My client and I just completed a great flip in Lake Highlands. We bought it for $294k, put $120k into the remodel, and ended up getting it under contract for our $525k list price in 3 days. A slam dunk in anyone’s book. Well Mr. Appraiser decided that our house was worth $490k. First of all, here’s what the house looks like…
Killer Curb Appeal!
Landscaping makes ALL the difference!
The contrast makes it pop!
A picture window can make the sale. They are double the price, but worth it for maximum resale value!
Flowed the nailed down wood floors throughout most of the house. Never use anything less when you’re trying to get $400k+ Also, you shouldn’t be paying more than $8/sqft for all materials and labor.
Always removed the wall dividing the kitchen and the living room. This is what buyers want, a kitchen built for entertaining.
Don’t skimp on the appliances and lighting. Buyers know when something looks cheap, so don’t give them a reason not to like the house. Spend the extra 20% to get the RIGHT appliances. I chose Samsung’s latest and greatest range for $1100 online.
Here’s a better shot of the Samsung range I was just talking about.
Always do canned lighting in your master. I prefer to do it in every room since it’s about the same price as installing a fan, but looks 100 times better. In this case, we did both!
Make sure you buy houses that have a spacious master bath. You can always remodel, it’s harder to add square footage.
This is the 5th bedroom / Study / 2nd Living … or Flex Room as the builders are calling them these days.
This is the bathroom off the flex room. I’m all about using frameless shower glass anytime I can. It doesn’t cost much more than framed glass, and buyer EAT IT UP!
Inside the shower…
Inside the bedrooms we did a solid color carpet on a 1/2 inch pad.
The Jack and Jill Bath. Remember to always use framed mirrors in all your bathrooms. I like to go to Home Goods.
Board on board fence is the way to go! It does cost a little more, but again, buyers love it. If you have to replace the fence, do it right. And please don’t forget to stain it!
We knocked down the wall that made that an enclosed patio to make it a better space for outdoor entertaining. Buyers love to have outdoor living spaces and will pay extra for houses with them.
This driveway came like this, but it’s a huge selling point because you can fit like 6 cars and a boat if you wanted.
SO I send all the recent comps to this appraiser and tell him that he’s off by at least $20k. I knew that the appraisal would come in under list price, but this was absurd. After a few days of phones calls and badgering, we got the appraisal up to $500k. The buyer was able to come up with $10k cash above and beyond their down payment, so we settle at $510k.
Two things to keep in mind when selling a house that’s over $500k. 1: Jumbo Loan – Any loan over $417k is a jumbo loan and will require a minimum of 10% down, 20% in some cases. So make sure your buyer has at least 15 to 20 percent down payment to cover any difference in the sales price and appraisal price. 2. Typically a smaller buyer pool, which is why you definitely want to price it competitively. Even so, the appraisal can come back to bite you!
Happy flipping guys!