Among the items I suggest to clients in a consulting situation regarding buying of residential property is as follows.
What will the area look like in 10 years? Will it look pretty much the same, or will that state highway be twice as wide, like up to your front door. Drainage problems. If there is a ditch nearby, there is a drainage problem. How about the neighbors? Talk to them. And look up the prior sales price (in disclosure states).
If the buyer wants to modify the property after buying, perhaps the time to get an estimate is before buying, not after. And advise the owner this part of the investment will not bring a dollar for dollar return in all but the exceptional situation. How many times have I had someone complain what a bozo I am for appraising their $100,000 house which they just spent $50,000 on for only $120,000.
I am researching a sale of $620,000 last week. The property sold in 2001 for $500,000, which was my appraised value in 2000. There have been no changes. It is a chicken farm and the income will not support the higher value. The buyer is clearly unaware of the prior sales price and I predict this person will have a really tough time making this ostrich fly.
ter