How Appraisals Impact Your Loan and Refinances | The STRR Podcast #74 | Tim Hubbard

Short Term Rental RichesApr 17, 202111m 53s74 viewsScore 75
Pricing & Profitability
intermediate
appraisal
loan to value
financing
property valuation
refinance
M

Summary

AI-generated

Learn how property appraisals impact your loan approval and how to navigate situations where an appraisal comes in lower than expected. Understand the different appraisal methods and strategies to contest or adjust for low valuations.

Key insights

  • When refinancing, provide the lender with documentation of any renovations or added value to the property, as this can support a higher appraisal value and potentially improve loan terms.

Mistakes to avoid

  • Receiving an appraisal lower than the purchase price can jeopardize a loan because lenders won't exceed their LTV ratio. This can force a renegotiation of the purchase price, require the buyer to cover the difference, or lead to loan denial.

Tools & resources

  • Expert STR Management Servicesservice

    STR Riches provides expert STR management services for hosts looking to improve guest experiences and reduce stress.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial