Let us continue our exploration of real estate team members. Two weeks ago we looked at the value of having these real estate professionals on your team: Coach, Real Estate Agent/Broker and an Insurance Agent on your team. Last week we looked at the importance of including these professionals on your real estate team: Accountant, Title Agent, Home Inspector and Contractor.
- Real Estate Agent/Broker
- Insurance Agent
- Title Agent Rep.
- Certified Home Inspector
- Mortgage Banker
- Property Manager
- Real Estate Attorney
- Closing Person/Escrow Officer
This week we will cover handyman and appraiser.
Handyman: A handyman is different from a contractor. A handyman generally does smaller projects such as repairs and maintenance. Even if you are a Mr. Fix-it, it’s always good to get an outside third party evaluation. For example, say you are buying a property as a long-term rental property. It could be useful to have a handyman come in and provide an estimate for the cost of rehabbing the units and for an idea of the cost when units are turned over. They can also be very helpful with things like clearing pipes, leaky faucets and clogged toilets as well as things that need to be done on a regular and routine basis. Even if you are handy, there will be times you can’t get to your property and you’ll need somebody who is familiar with that property to handle the issue.
There are also many ways a handyman can help with Fix and Flip properties. Fix and Flips are more project related. If you are not good at directing and keeping people accountable, a handyman can be a cost effective solution.
Appraiser: A state certified real estate appraiser is another important part of the real estate process if you are going to use a loan to purchase the property or you want an independent third party opinion on the property value. An appraiser can give value if there is no loan also. Cash buyers find that there is value for paying for an appraisal.
The results of the appraisal will depend on the value of local real estate, property location, property condition and its particular amenities. Because of the changes made by the Dodd-Frank act, appraisers must be completely independent from the buyer, seller, and lender. There are two reasons you would have an appraiser as a team member. One, if you wanted an independent third party opinion. Two, if you are flipping the property, the buyer (and their lender) may require an appraisal showing the increase in value you added to the property. You can find an appraiser or validate their credentials by visiting www.narea-assoc.org.
There is a great deal of information to know about appraisals and their importance. If you would like to learn more, I suggest you look at these articles:
- Getting an Appraisal? Know the Facts of the Home Valuation Code
- Understanding what an appraisal is and how to prepare for it
Real Estate investing at any level is a people business. You need the right people.
Diana D. Hill