INVESTOR GUIDE · APPRAISALS
How to prepare for an appraisal
The appraisal sets your cash-out. How it’s ordered and supported matters more than most investors realize.
The short answer
- Your appraised value sets your loan amount. At 80% of ARV, every $10,000 of value is $8,000 of cash-out.
- Our proprietary process, from the scope of work to the before-and-after documentation to how the appraisal order is positioned, has helped investors see anywhere from $10,000 to $100,000 more in value.
- Get the Appraisal Advantage guide before your next appraisal is ordered.
WHY IT MATTERS
Value is your cash-out
On a cash-out refinance, you can borrow up to 80% of ARV. That makes the appraisal the single biggest number in your deal: every $10,000 of value is $8,000 more cash back in your pocket, or a lower LTV and a better rate.
WHAT GOES INTO IT
The appraisal is won before the appraiser shows up
Most lenders order the appraisal and hope for the best. We don’t. A clearly articulated scope of work, documented before-and-after photos and how the appraisal order is positioned are all critical to the value you get.
Every investor who closes with us gets our scope of work (SOW) template. It lays out every improvement you made and what it cost, in a format an appraiser can use. Appraisers can only give credit for what they can see and verify, and the SOW puts your work in front of them.
The rest is our proprietary process, and it’s helped a lot of investors get anywhere between $10,000 and $100,000 more in appraised value than they would have otherwise.
THE GUIDE
Get the Appraisal Advantage
Our Appraisal Advantage guide walks through how to prepare for an investor appraisal. Read it before your next appraisal is ordered, then talk to us about putting the full process to work on your deal.
STRAIGHT ANSWERS
Appraisal questions
How can I get a higher appraisal on a refinance?
Prepare before the appraisal is ordered: a clear scope of work, documented before-and-after photos and a well-positioned appraisal order. Our process has helped investors see $10,000 to $100,000 more in value.
How much cash-out does a higher appraisal get me?
At 80% of ARV, every $10,000 of added value is $8,000 more in loan proceeds.
What if my appraisal still comes in low?
There are options, from challenging the value to taking the deal to a lender with different guidelines. Talk to us before you accept a low number.
KEEP READING
DSCR KINGS · INVESTOR FINANCING
Refinancing soon? Get the appraisal right first
Talk to us before the appraisal is ordered. It’s the cheapest money you’ll ever make.
Business-purpose loans for investment properties only; not for owner-occupied homes. Lending guidelines, leverage and loan programs vary by lender and by state and are subject to change. Terms and approval depend on the property, the borrower’s credit and capital-partner guidelines and are not guaranteed. Examples are for illustration only.
