A new series of articles that will talk about Flips

What is going to happen?

I haven't written to you in a long time and I'm excited to be back, as most of us know during the summer in the US, so it's hard to find any time.

I am starting a new series of articles that talk about flips, I will try as usual to give more advanced information than usual, to give real value to the members of the group and try to innovate with all the content that is published here on the topic.

The first topic I will talk about is the correct calculation of the size of the house and all its components.

When we first see a home, the first step in the asset valuation process begins with an absolute understanding of the size of the property. And no, I don't mean the number we list on US marketing sites or MLS. Remember that all sites will see the numbers that the seller or agent will type, and not necessarily the actual size of the property.

In addition, most will not have any real reference to the additions to the property (parking, extensions, patios, pool, etc.) The issue seems relatively straightforward at first, but you will be surprised to know that most of the incorrect price estimates I saw stem from the above basic information.

Flip is a property that we sell, in 90% of sales will reach an appraiser's property, and it will not really matter what is registered to you if Al-Ace, its estimate is critical to the sale, because in many cases the buyer will not be able to cover the gap between the asking price and the appraiser's estimate.

Not just any second property will already be listed in the initial text "The size of the house and the rooms are the only estimate, the buyer's responsibility to make sure himself"

So how do you check and why pay attention?

The first visit made after receiving the property (even before we arrived) is a visit to the county site. The sites vary from county to county but the main thing remains, the county looks from what consists of the built up area of ​​the property.

Some settings that are important to know:

Living SQF

Spaces of the property that are under the central roof of the building or roof of the same finish level are under the building's cooling / heating system, the same finishing level as the rest of the building, spaces that allow for life throughout the year and are above ground level.

Base / Main building

Living area of ​​the property, let's find the bedrooms, kitchen toilets etc.

Enclosed

Extensions or additions closed from all parties

Open

Extensions or extensions that are open to at least one part of the extension

Finished

The finish level is the same or nearly the same as the living area of ​​the property

Unfinished

The finish level is lower than the property's living area

And now we move on to the study itself, in front of us a table that describes on the one hand the squar from her life, and on the other hand additions worth considering.

What will come to life? Basically, and anything else that is enclosed, Finished, and meets Living standards (full explanation above) closed balconies in some cases (depending on living room settings) Laundry rooms in some cases (depending on living room settings)

Some examples (estimates I specify can vary by region):

Finished enclosed porch

How do we know if we are considered part of the living or not? We will check the property if the balcony meets Living Square Pete conditions. Not meeting conditions? The appraiser will only be considered an extension and should be priced separately from the structure. An enclosed porch that is not part of the living will be assessed by an appraiser at $ 2500 for 100 Squar Pitt. Y Appraiser at 1000 $ to 100 Square.

Note that there are many types of balconies, the only one that can enter as a living area, the rest of the balconies will always be classified as extensions.

Finished / unfinished Garage

Does not enter into the Levying (will never meet the Levying criteria) but is classified as an extension with value, valued by an appraiser at $ 1 for single parking, and $ 2 for double finish finish finishes, a bit less than finish.

Yard

The appraiser will not give value to the patio.

Base finished / Semi finished

It is very rare for a basement to be classified as part of the building, so it is important to treat it as an extension.

Pool / Screened pool

Does not add to Living but definitely classify as an extension, depending on the size of the pool and the level of finish (open, closed, networked pool) will be estimated at approximately 10-20 $ 1,000 by an appraiser.

Of course there are many different and different classifications for parts of the structure, my desire is to explain to you how important it is to take them into consideration, the differences in value can be huge between living space and space of some kind or extension.

Have you classified everything in a simple table? Do you understand the size of the house and the size of the extensions? Map The valuation work becomes much easier.

Attached are two pictures of two balconies that are classified in the same county, one is considered part of the Living and the other is not, what is what?

I will be happy to answer questions.

Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)

The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion

• Vadim Lichtik Saar Bam
• If you bring a balcony to the finish level of Living it increases the sqf of the property in favor of the valuation?
• Nir Day
• Prince of You… This is a post that can be 2 posts
• thanks Michael! As far as insurance is concerned, the insurance companies do not cover thefts, and those who do do so cover very high self-participation. How do you deal with this risk? For example stealing ac, or copper from an outdoor pipe?
• Post bomb Michael?
• Extra professional and interesting post. Well done!!
• Tal Saadon
• Michael Zalkind
  Which state do you work for?
  In North Carolina, for example, a pool can lower the value of the property in certain areas. In addition, living is defined a bit differently in the law - there must be a heated area, but there must be no cooling.
• Works in Florida. Interesting thing about the pool, the first time I hear about something like that. As for living settings, they really vary from country to country, reflective of the area should be usable throughout the year with the same finish level as the property. Thanks for the refinement!
• Achla Post
• Excellent list, I kept aside. Thanks!
• Great, thanks????