111 lines
3.6 KiB
Markdown
111 lines
3.6 KiB
Markdown
# Property Assessor Underwriting Rules
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## Goal
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Turn messy property data into a fast investor or buyer decision without pretending precision where the data is weak.
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## Practical heuristics
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### 1. Use the most comparable comp set first
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- For condos: same-building active and sold comps first.
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- For houses or townhomes: same subdivision or immediate micro-area first.
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- Expand outward only when the close comp set is thin.
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### 2. Fixed carrying costs can kill a deal
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High HOA, insurance, taxes, or unusual maintenance burden can make a property unattractive even when price-per-sqft looks cheap.
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### 3. Waterfront, coastal, older, or unusual properties deserve extra skepticism
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Assume elevated insurance, maintenance, and assessment risk until proven otherwise.
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### 4. DOM and price cuts are negotiation signals, not automatic value
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Long market time helps the buyer, but a stale listing can still be a mediocre deal if the economics are weak.
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### 5. Unknowns must stay visible
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If reserve studies, bylaws, STR rules, assessment history, lease restrictions, or condition details are missing, list them explicitly as unresolved diligence items.
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## Minimum comp stack
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For each property, aim to collect:
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- target listing facts
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- same-building or same-micro-area active listings
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- sold listings if available
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- nearby similar properties
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- rent or lease signals when investment analysis matters
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## Condition normalization
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Listings with similar asking prices can have very different real basis once make-ready work is included.
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Assess photos for:
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- flooring condition and carpet presence
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- appliance package completeness and age
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- kitchen and bath refresh level
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- paint and trim condition
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- lighting, fans, doors, and visible wear
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- any obvious repair or moisture concerns
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Use a rough make-ready range such as:
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- Light: cosmetic cleanup / paint / fixtures
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- Medium: flooring plus partial appliance or bath refresh
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- Heavy: major interior updates or visible deferred maintenance
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When carpet is present, note it explicitly and include an estimated removal or replacement adjustment in the make-ready range.
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When major appliances are missing, note the likely replacement burden rather than pretending the asking price is fully comparable to turnkey units.
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## Carry framework
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At minimum, estimate:
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- P&I
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- taxes monthly
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- HOA monthly if applicable
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- insurance assumption or uncertainty note
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- effective carry range after maintenance / vacancy / property friction
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- make-ready burden when condition is not turnkey
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If the listing already provides an estimated payment, use it as the starting point, then explain what it leaves out.
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## STR / rental notes
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Never assume STR viability from location alone. Confirm or explicitly mark as unknown:
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- HOA restrictions
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- minimum stay rules
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- city or building constraints
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- whether the micro-location is truly tourist-driven or just adjacent to something attractive
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## Verdict language
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Use one of these:
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- `Buy` — pricing and risk support action now
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- `Pass` — weak economics or too much unresolved risk
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- `Only below X` — decent candidate only if bought at a materially lower basis
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## Suggested memo template
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### Snapshot
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- Address
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- Source links checked
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- Price / type / beds / baths / sqft / HOA / taxes / DOM
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### Market read
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- Same-building or same-area active inventory
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- Nearby active comps
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- Any sold signals
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### Economics
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- Base carry
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- Effective carry range
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- Rent / STR comments when relevant
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### Risk flags
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- HOA or fixed-cost burden
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- insurance / waterfront / age
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- reserves / assessments / restrictions if relevant
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- liquidity / DOM
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### Recommendation
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- Fair value range
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- Opening offer
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- Ceiling offer
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- Final verdict
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