CHMC wants to do an appraisal, need advise!

[DK123]

Greetings fellow investors.

I have a property, legal duplex in Hamilton, ON. Located on James street north, near waterfront. Great area that saw property prices go up recently.

I got a house, semi detached for 140,000, in awful shape. We completed major renovations, including new plumbing, electrical, panels, drywall, complete gut out and new kitchens, washrooms, etc.



I have it sold for 239.000 now, but the CHMC wants an appraisal. There is really nothing comparable on the street sold recently.



What should I do to ensure the appraisal comes in my favor?



Many thanks for all your comments, advise, maybe prior experience with CHMC appraisals?

 

[ChrisDavies]

Be there when the appraiser shows up. Turn all the lights on, put the toilet seats down, make sure there aren't any weird smells. Meet them on the street, smile, shake their hand and answer any questions they have. You're there to make them have a good day at work, help them see the value of the property and tell a little (very little) of the property's story.

 

[GaryMcGowan]

Great advice Chris,

You need to be there, sell the sizzle on all the upgrades that you have done. Sometimes before and after pictures help.

 

[DanieLL]

We went through refinancing this year after doing significant renos over the last 12 months on a triplex. The property was apprised 40% above what we paid for it last year. No CMHC was involved though.





My advice:


Help him do his/her job.


Bring pictures of rooms, unit before & after.


Bring a summary of materials purchased for the reno, group by scope, unit, etc., Home depot/rona/ other supplier statements help too.


Bring a building permit in case you had one.


Let them know that the MPAC was not updated on the new market value of the property.





Cheers,

 

[kir]

A different issue but.... what if you don't supply the appraisal , can the buyer and seller still do the transaction with two lawyers?? CMHC can do their own appraisal at their expense.





?



Kir.

 

[TodorYordanov]

"Help him do his/her job."



All great advice here. One think I will add is something I've done myself and I think it helps.



When you meet him and start showing him the property in a casual conversation mention the appraisal value that you are looking for. Put a number in his head. Make a personal connection. Tell him what your plan is for the property. Describe the transaction that you are working on. Make him feel appreciated and important.



Ask for what you want and you may just get it.



Good luck,

 

[DK123]

Thanks for all your comments. I actually sold the house for 215000!

The appraisal appraised it at 216000. SO the bank had no problem making a loan.



Some things I learned: Make sure it is going to be a sunny day, no clouds. Everyone feels better on a Sunny day.



number two: I brouhg my laptop with pictures of the units before, during the reno and after the reno.



Show all best features.



As the person how one gets into the profession, guaranteed at leat 15 minute narrative.



The more you have the other person talk, the more he will feel appreciated.



I learned the guy liked hunting, traveling, and driving mercedes... All put to good use!

 

[Seankm21]

I got a house, semi detached for 140,000, in awful shape. We completed major renovations, including new plumbing, electrical, panels, drywall, complete gut out and new kitchens, washrooms, etc.



I have it sold for 239.000 now, but the CHMC wants an appraisal. There is really nothing comparable on the street sold recently.



What happened to the 239,000 price that you mentioned that you had it sold for. You actually sold it for 215,000? Was it the same buyer?