1. Ensure You’re Paying the Right Price
As a foreign investor, you might not have access to localized market data. A property appraisal helps verify whether the seller’s asking price reflects the real market value. This helps you avoid overpaying for the property, especially in hot or unfamiliar markets.
A Brazilian investor working with Dowise considered a multifamily property in Houston. Thanks to a professional appraisal, the valuation revealed that the asking price was inflated by 12%. The investor used this insight to negotiate a better deal and saved thousands.
2. Strengthen Your Financing Strategy
Most lenders—especially in U.S. real estate—require an appraisal to determine the loan-to-value (LTV) ratio. If the appraised value is lower than expected, the buyer may need to increase their down payment. Knowing this upfront can help you plan your finances better or reconsider your investment.
Dowise offers foreign investors financing solutions that align with appraisal-based underwriting. This ensures you’re not blindsided by unexpected costs during the loan process.
3. Protect Your Investment Against Future Risks
An accurate appraisal provides you with a solid benchmark for future resale value, helping you assess long-term return on investment (ROI). Appraisals can also flag structural or market issues that may affect appreciation potential—vital for foreign investors planning to resell or lease the property.
4. Support Legal and Tax Compliance
Property valuations also support accurate tax calculations, including property taxes and depreciation schedules. In the case of legal disputes or audits, an independent appraisal can serve as reliable documentation for your investment.
5. Build Credibility with U.S.-Based Sellers and Agents
Coming prepared with an appraisal during negotiations shows that you’re a serious, well-informed investor. It can foster trust and speed up the closing process—an essential advantage in competitive markets.
When Should You Get an Appraisal?
- Before making an Offer, get a preliminary sense of property value through a Comparative Market Analysis (CMA).
- After an Accepted Offer – Proceed with a formal appraisal to finalize your financial decision.
- During Refinance or Cash-Out – Use appraisals to determine equity and potential loan amounts.
Appraisal vs. Home Inspection: What’s the Difference?
While both are part of due diligence, an appraisal estimates value, while a home inspection assesses the property’s condition. Ideally, foreign investors should schedule both before closing to avoid hidden pitfalls.
Choosing a Trusted Appraiser
Ensure your appraiser is:
- Licensed and certified in the state where the property is located.
- Familiar with international buyer needs.
- Experienced in appraising your target property type (residential, commercial, etc.)
Your lender or partner platform, like Dowise, can help connect you with vetted appraisal professionals in your investment market.
Final Thoughts: Appraisals Are an Investment, Not an Expense
While it may seem like an added step, a professional appraisal protects your investment, increases your negotiating power, and ensures regulatory compliance. For foreign investors navigating U.S. real estate, it’s not just smart—it’s essential.
Ready to Invest in U.S. Real Estate with Confidence?
At Dowise, we help foreign investors like you simplify real estate financing in the U.S.—from property evaluation and appraisal assistance to fast approvals and tailored loans. No U.S. credit history required!
Contact Dowise today to get pre-approved and begin your U.S. real estate journey with expert guidance.