In episode 8 of the Profitable Powerhouse Properties Podcast, your hosts are joined by Tom Horn, a real estate appraiser in the Birmingham area. Tom talks about appraisals, how he conducts his business, and what adds the most value to the property.
Episode Highlights:
- Learn about the property management summit AHI is putting on in Birmingham on June 5th, 2019.
- Why appraisal is one of the most important parts of the buying/selling process.
- How to identify comparables that will support or disprove a property value.
- You have to look at what services and initiatives are coming into an area to get a picture of what property in the area is worth.
- The first thing that comes to mind when Tom sees a property that’s fully updated and outfitted.
- How to know what kind of finishes to put in your rental home.
- How Tom collects rental comps and how that differs from sales value.
- Where Tom gets his information for his workflow.
- Whether bathrooms and kitchens are the most valuable upgrades in a property.
- The valuation of a retail flip in a higher rate market.
- How to approach different properties in different ways based on classification.
- Zillow is great at reporting home sale prices, but what’s very inaccurate is the Zestimate.
- Whatever the market holds is the most a home is going to go for.
- Look at your market an know what it holds from a rental and sales standpoint.
- The value of a good property management team and other local partnerships are extremely important.
- Buy in an area that’s under restoration - if you buy in earlier you may stand to reap a greater reward.
- The biggest and most important thing to know is market value - what kind of margins you’re working with and how much you want.
- Know what properties are selling for and know what those properties are.
- One simple thing you can check on your appraisal to be sure it’s valued properly.
Key Points:
- Using comps is not a matter of averaging the top three, there are a lot of factors that go into how a comp supports a property value.
- Don’t have the biggest or most expensive house in the neighborhood.
- Market absorption is vitally important with the greater impact on the sales side.
Tweetable Quotes:
- “It’s not just one or two things an appraiser looks at, it’s a lot of things.” -Tom Horn
- “If someone wants to sell at the top of the market, the house has to look like what’s at the top of the market.
- “Curb appeal has an impact because if two homes are identical the buyer will choose the one with better curb appeal.”
Resources Mentioned:
- Check out our website ahiproperties.com
- Check out Birmingham Insurance Group
- Start earning passive income with Roofstock.com
- Email Jonathan and Bryan at Podcast@AHIProperties.com
- Get your appraisal questions answered and learn more about Tom Horn at birminghamappraisalblog.com
- Call Tom Horn at 205-243-9304