Your Financial Pharmacist Real Estate Investing Podcast 128: Did I Pay Too Much? Residential Appraisals 101 with Nate Hedrick and David Bright

YFP REI 128: Did I Pay Too Much? Residential Appraisals 101


Nate Hedrick and David Bright unpack the latest market trends, revealing how list prices can mislead, why appraisals tell the real story, and how smart renovations and a knowledgeable realtor can unlock hidden property value.

Episode Summary

In this episode, hosts Nate Hedrick and David Bright dive into the latest twists and turns of the real estate market, giving an insider’s look at the fall slowdown and what’s really going on behind those flashy list prices. They reveal why the numbers you see don’t always tell the full story—and how true market value is actually determined through appraisals that factor in key details like location, size, age, and condition.

Nate and David also share their strategies for finding hidden value through smart renovations and why understanding local market trends can make or break an investment. Plus, they break down the critical role of a savvy realtor in spotting the right opportunities and navigating offers.

About Today’s Guests

Nate Hedrick is full-time pharmacist by day, husband and father by evening and weekend, and real estate agent, investor, and blogger by late night and early morning. He has a passion for staying uncomfortable and is always on the lookout for a new challenge or a project. He found real estate investing in 2016 after his $300,000+ student loan debt lead him to read Rich Dad Poor Dad. This book opened his mind to the possibilities of financial freedom and he has been obsessed ever since. After earning his real estate license in 2017, Nate founded Real Estate RPH as a source for real estate education designed with pharmacists in mind. Since then, he has helped dozens of pharmacists around the country realize their dream of owning a home or starting their investing journey. Nate resides in Cleveland, Ohio with his wife, Kristen, his two daughters Molly and Lucy, and his rescue dog Lexi.   

David Bright is a pharmacist with a heart for teaching. He’s been a full-time professor since 2009 with a passion for implementing and improving pharmacy services. Themes of “implementing and improving” in the pharmacy space are quite similar to themes of “building and fixing” in real estate, which has been a growing hobby for David and his wife, Heather, who bought their first house more than ten years ago. That fixer-upper house became a live-in house flip, which they sold a few years later, only to repeat the process with their next house. When David and Heather got sick of perpetually living in a construction zone, they pivoted to fixing up rental properties in West Michigan, where they now live. 

David invests in real estate as a way to bring greater diversity to financial planning and to fund memorable life experiences with family and friends.

Key Points from the Episode

  • Market Conditions and List Price [0:00]
  • Understanding List Price and Market Value [2:11]
  • Assessing Market Value and Appraisal Process [4:58]
  • Broker Price Opinions and Automated Valuation Models [37:29]
  • Value-Add Strategies and Renovation Potential [37:37]
  • Making Offers Based on Value and Market Conditions [37:47]
  • The Role of Real Estate Agents in the Process [38:11]
  • Understanding the Seller’s Perspective [40:14]
  • Final Thoughts and Safety Checks [40:44]

Episode Highlights

“I say this to every single one of my clients: the list price does not matter. It is completely made up. List price is literally something that the agent and the seller get together and decide on a number, and that’s how you make up the list price. It has almost nothing to do with market value.” – Nate Hedrick [2:37]

“When you look at a house with an investor hat on, oftentimes you’re looking for what that value is. Look at what other properties have sold in the area, look at the condition of the house. How does the roof look? The furnace and water heater? Are they from the 1960s or are they updated? When you know what’s going on in that house, and that helps you to determine that value a little better.” – David Bright [17:58]

Links Mentioned in Today’s Episode

Episode Transcript

 

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