The Complete Due Diligence Checklist for Real Estate Investors

We start from after-repair value based on recent comparable sales, subtract the cost to bring the property to market condition, subtract holding and transaction costs, and leave a margin. That's why offers on well-maintained homes come in closer to retail than offers on properties needing major work — the repair number is doing most of the work.

Automated estimates use public records and past sales, so they can't see a new kitchen, a failing foundation, or a shared driveway. They also carry a published margin of error that widens in neighborhoods with few recent sales. Treat them as a starting range and get a real underwritten number before making a decision.

Usually not necessary for a direct sale, since our own underwriting produces the number. A pre-listing appraisal can help when a property is unusual, when heirs or a court need an independent figure, or when you're documenting value for tax purposes. The FHFA House Price Index is a useful free check on how your market has moved.

It depends on your state and how the property was titled. Property held in a living trust or passing through a transfer-on-death deed can often be sold right away, while property that must pass through probate usually needs the court to confirm the executor's authority first. Some states also allow a sale during probate with court approval, so ask the estate attorney which path applies.