| Investors' view of the appraisal can change | | | | - Contact information for the actual property visit |
| dramatically depending on their view of the | | | | The well prepared investor will also provide: |
| investment situation. The perspectives to consider | | | | - Known sales supportive to the plan; |
| are purchasing, refinancing, purchasing with financing, | | | | - Best known comparable competitive properties |
| or at the sale. The results from the appraisal depend | | | | including information about amenities, floor plans, |
| a great deal on the preparation of the party seeking | | | | management, rents, etc; |
| the appraisal and the specific goals they are | | | | - Any known recently completed appraisals and the |
| motivated to achieve based on their perspective as | | | | results of that activity; |
| already noted. | | | | - Local economic news and information that the |
| Before delving deeper into the perspectives, what | | | | appraiser may have; |
| should the investors over arching intent be as a | | | | - Input regarding why certain areas are or are not |
| buyer? The buyer should always seek to confirm | | | | useful economic indicators for the property; and |
| definitely and avoiding perspective error that the | | | | - Marketing plans |
| investment value is within bounds they and their | | | | Additionally, the new purchaser should explain the |
| other equity partners expect. This objective should | | | | management plan, past history of such management, |
| be precedent to other objectives that having | | | | and how the management plan affect the results |
| satisfied this requirement are successors to the | | | | normally. Finally, the appraiser should understand |
| process. | | | | clearly your view of value and how you reached that |
| Before going further, appraisers generally require a | | | | conclusion given current facts. |
| relatively standard set of basic information including: | | | | With these steps taken, the investor is in the best |
| - Three years financials, | | | | position to gain the investment information from the |
| - Past Taxes, | | | | appraiser to either support their sale or to support a |
| - Copies of past appraisals, | | | | purchase. In all cases, this preparation may offer |
| - Copies of past property condition reports, | | | | significant advantage over the principal opposite your |
| - Pro Forma financials from the new owners, | | | | goal whether they are selling or buying and you are |
| - The business plan if available, | | | | buying or selling. |
| - Planned Improvements and costs, and | | | | |