New to Renting or Selling? When to Call a Property Appraiser


October 31, 2018

Owning a rental property is a lot more work than people realize. Most of the time you'll just be trying to keep your property running smoothly. Also, there will be times when you'll have to focus on financing for the property. Maybe you want to make location improvements, or you just want to improve your mortgage. Either way, it's important to understand when to get a property appraiser. Let us explain how to make the most of an industry expert.

 

Getting a property appraiser for refinancing

A property appraiser is crucial when you want to refinance your property. If you've owned rental properties for years, chances are your mortgage interest rate is higher than what investors pay. That's one of the best reasons to try and have your property refinanced. Take the time to get your building refinanced because it can help you get a lower interest rate. Specifically, if you have good enough credit.

a man wearing a dark blue blazer and working as a property appraiser with a model house and a calculator and laptop and paperwork on the wooden table in front of him

Before you can refinance a property though, you need to have it appraised once again. The lender has to know whether it's worth enough to be tied to a new mortgage. After you go through the appraisal process, you'll find out whether your lender can qualify you for a new mortgage at the lower interest rate. If the process goes properly, you'll have the same property with a lower mortgage payment. Meaning, you'll gain more profit every single month.

 

Using an appraisal to update a property

While it's best to save excess rental income for future property improvements, it's not always possible. There are instances where you simply can't save enough money to fully remodel your properties. Therefore, you may be able to use a property appraiser to help get the money that you need. It's possible to refinance your property and get more than your loan amount in the process. This excess money can be used to remodel your property and to help it become more competitive for the market. This is a similar technique for taking out an equity loan. However, in many instances, you won't increase your monthly payment with this technique. Especially if you can get a lower interest rate than what you currently have.

 

Getting an appraisal to use the property as collateral

woman wearing a white shirt and a man wearing a blue shirt are hugging and smiling while sitting across froma  man wearing a blue shirt and a dark tie while he explains his appraisal on their property

Are you interested in using one of your properties as collateral for a future property purchase? An appraisal may be worth your while. If you own several properties you can utilize those properties to help you obtain additional properties. If you decide to do this you need to have your rental appraised. With an updated appraisal you can use your property as a tool to secure a loan for more properties.

 

Making the most of your appraisal

When it's time to work with a property appraiser, it's important that you do your best to get the highest value possible. A higher appraisal means it will be easier to obtain a loan for your property and that your property will have more use for other purposes as well. That's why it's so important to make sure you get the best appraisal possible. Follow our appraisal tips below to maximize your value without making a huge investment in your property.

  • Update the landscape around your property.
  • Clean the interior and make sure it isn't cluttered if you have the ability to do so.
  • Take care of basic maintenance tasks, it's important to demonstrate your property is in good shape and well cared for.
    • Replace smoke alarm batteries
    • Replace the furnace filter
    • Repair lifted or the damaged flooring
    • Make sure the door and cabinet hardware is in good shape
  • Open up the blinds to let in as much natural light as possible.
  • Supply documents detailing any major improvements you've made to the property.
  • Try and clear out tenants and pets so the appraiser has easy access.

A property appraiser makes sure your property is valued as high as possible. Whether you want to refinance, use your property as collateral or make improvements to the space, a good appraisal helps. Use our tips below to make sure you have good results when working with a property appraiser. Alternatively, consider hiring a property manager to help you with tasks like these.

Blueground specializes in property management. We will handle most rental property maintenance and management tasks for you. In becoming your primary tenant, we find senior executives as sublessees, thereby guaranteeing you a steady rental income. Get in touch with Blueground today to see how we can leverage your existing property investments.


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