How to sell an rough house in St Louis Missouri miniseries part 2

First, figure out the rough Saint Louis house’s After Repair Value

Brought to you by: STL Real Estate, Property Solutions for Saint Louis homeowners

There are a couple of different ways that you can figure out the ARV (after repair value) of your house.  Your personal situation and the house’s condition will dictate the most appropriate ARV method to use.  Our recommendations are based on what is best for most of the people that we come across with a property in need of repair.  This should not be considered as legal advice, and because each person’s situation is different there is not a one size fits all strategy.

First ARV Option – Spend Money and Hire an Appraiser

The first option that you can do is to hire an appraiser to come out and give you a valuation of the property.  Appraisals are a pretty expensive option, and the valuation will often come in based on what you ask him to come up with.  So, if you order one you need to be very specific with your instructions. I know this sounds bad, and like it shouldn’t happen, but appraisers are human and often can come up with different figures for a house’s value based upon what the person ordering the appraisal wants.  For example, a major problem used to happen consistently in the loan industry.  A homeowner would order an appraisal in an effort to get their loan refinanced.  The appraiser would come, and the homeowner would talk to the appraiser about why the need the refinance, and to please get figure as high as possible so the refinance would go through.

Whether we like to admit it or not, appraisers are human and their valuations can be affected by what the homeowner requests from them.  As a result, you need to be very specific with your instructions to the appraisers.

Tell them you need to get two seperate valuations from them.

• First, what would the house be worth if it was fixed up.
• Second, what it would be worth today in its current condition.

Now, this is the best shot you have at getting an accurate figure from the appraiser.

There is a weakness to appraisals that you need to be aware of:

At any given moment, a house is only worth what a person is willing to buy it for.

An appraisal is a theory on a house value.  Many times appraisals come in accurate, but this isn’t always the case.  The difference is analagous to learning something in school compared to learning something in the real world.  You can get a degree in business management that gives you all sorts of theories on the best way to manage people.  Then the student gets a management job in the real world and realizes how different it is to actually manage a person in real life.  So, you need to keep this in mind if you are going to order an appraisal on your house.  The figure can be used as a bench mark but should not be taken as gospel.

Because of this, we only recommend that a client does an appraisal if the homeowner has a substantial amount of money.  If a person needs to sell a house fast, this isn’t a good option because it is a time intensive process, and at the end of the day, a house is only worth what a person is willing to buy it for.

Please feel free to contact STL Real Estate to sell your house quickly, or if just want some solid real estate advice.

This concludes the second part of the mini-series.  Click here to contact a we buy houses saint louis company.  The next part of the selling an rough St. Louis house mini-series will go over the other ARV options that you have available to you.

Click here to read part 3: Sell an rough House in St. Louis, Missouri Part 3

The other parts of the miniseries can be found by clicking on the below links:

Sell a rough House in St. Louis, Missouri Part 1, Sell a rough House in St. Louis, Missouri Part 4, Sell a rough House in St. Louis, Missouri Part 5, Sell a rough House in St. Louis, Missouri Part 6, Sell a rough House in St. Louis, Missouri Part 7, Sell a rough House in St. Louis, Missouri Part 8, Sell a rough House in St. Louis, Missouri Part 9, Sell a rough House in St. Louis, Missouri Part 10, Sell a rough House in St. Louis, Missouri Part 11, Sell a rough House in St. Louis, Missouri Part 12