How to Appraise a House Part 1 - with Bruce Glenn

[Music] we are out here with mr. Bruce Glenn appraiser does a lot of stuff but today he's an appraiser and we're gonna try to learn how to from an investment standpoint how to be able to really calculate after repair value that's really what people are most interested in trying to do obviously it comes as a big part of that which we can't really talk about today unless maybe maybe late I mean I can add a little bit later but today look we're gonna walk through this house it's a little loud out here but we're gonna walk through this house over here in the huffman area and I just want you to kind of tell us yeah do you just do your job and kind of talk through it as you do it yeah because basically this is really probably the easiest part this is actually a physical inspection you know so I come out here and the main things I'm looking for I've got to measure the house I got to do all the measurements so I'm gonna get the exact square footage and that's both upstairs and this is split foyer so we're gonna have some finished basement area I'll have to measure that and then it's just taking notes you know I take notes of all the construction materials how you know what's been updated and all that so that's all I do you know on this trip so doesn't yeah so yeah I'm gonna start this would measure because that's the first thing I do is I come home measure all the way around the house we're gonna watch you measure good yeah now I'm gonna ask you some questions as you do that if you don't mind so when you measure square foot I ask you this on the pot and Brut by the way Bruce is on our podcast it's gonna be that episode is gonna be released in March when you measure you're actually measuring from the outside not from the inside like because when I go to measure square footage I think you got to measure each room and then add them together so so actual square footage that appraisers use is is done on the outside totally from the outside squared yeah and now for single-family homes like this now there are differences with you do a condo those are interior measurements I have to measure but for 98 percent of the stuff single families are townhomes that's an exterior measurement and so what you do sometimes like here it's easy I'm gonna go all the way around it and measure but II you know you get some of these newer story and a half's where I can't get outside on the second floor I'll measure on the inside and add six nine inches depending on whatever material is there you know to get an exterior measurement but it is exterior measurement interesting I never would have known that yeah and if something too a lot of times I will you know spot new measurements on the inside with my rooms so that when I go back and do the sketch I know kind of where that wall is you know so I don't really have to but it gives me bearing you know dividing out the room walls so it looks to me like with something like this it's sticking out it looks to me like that's gonna be the upstairs gonna be a little bit different of a square footage than the with the downstairs gonna be we kind of talked about this the podcast because it's a split for life but you had to deal with everything down here is below grade now a lot of times people will say define that yeah exactly if any part of this area is below grade like right here is below grade now it might be in the back you can walk right out and it's not below grade but if there's any part on that house then the whole the whole basement is kazoo so what does that mean them so it's divided up you get credit see people say highlighting any credit for my basement what you do it's just in a different area of the appraisal so this will be the gross living area everything above gray which is upstairs all this upstairs and that'll include all the bedrooms baths that I just sketch out and then this is gonna have some finished area in the basement and then one car basement garage so but I have to measure down there and get credit for it's just in a different area yes and and not as much credit not as much exactly gotcha yeah so even though so hope you guys paid attention there even though it's a finished basement you're not getting the full credit like it was the upstairs just because it's below grade if you had like say this was a thousand square feet and a thousand square feet and then you were comparing it to a 2000 square-foot one-story with no basement that 2,000 square foot it's gonna be worth more the square footage is worth more mm gotcha that makes a lot of sense now I hope you guys are paying attention to this because this is stuff I've been doing this for almost five years and that all this is really really good information to know before you go into a flip before you go into anything that's gonna need to be appraised because the appraisal like I'm dealing with it right now if the lender is don't only gonna go buy the appraisal and they only want to lend if the appraisal is it like my cases their appraisals 137 but the contract price is 150 they got to go with the 137 they won't do the 150 so the appraisals vital unless they're paying with cash yeah and that's that's one of the things it's really it helps me I mean it gives me an advantage I mean just being appraised for 25 26 years before I make an offer on something I know what it's comprised for in your instance I sometimes shy away from split borders with one bath upstairs even though it's got finished with the bath downstairs some appraisers it's it's all subjective it doesn't you know what I might come up with and you saw the difference in two appraisals you know might may not be what somebody else comes up with so I kind of go more with I know that there's gonna be no question with the appraiser and I never have a question would be price right now so or if I bought something like that I'd be thinking out I'm very low in what would be my worst case if an appraisal came in yeah

Channel: REI LIVE

Views: 40,285

Keywords: brian trippe, alareia, bruce glenn, innovative renovations, appraisals, appraising, appraising real estate, real estate, real estate investing, real estate investors, creative real estate, reia, alabama reia, alabama real estate, birmingham, alabama, birmingham alabama, birmingham reia, real estate investors association, alabama real estate investors association, alabama real estate investing, alabama real estate investors

Id: m6bjWaG_AhE

Length: 6min 14sec (374 seconds)

Published: Fri Feb 24 2017