I attended a meeting this week at the Board of Realtors where we had a group of local Coachella Valley appraisers speak to the issue of appraisal in the valley. With the market shifting quickly- (multiple offers on most homes <500k, and even some in the higher price bands being reported), it is important to understand what constitutes value from an appraiser's perspective.
Many homeowners are beginning to understand that there home is not necessarily going to pull the value they want or need. Short sales and other options are still a big need in our society and market as we continue to adjust from the bubble that we all encountered. Having said that, getting to home owners this information is not only very timely, it is also hopefully a great resource for them to review either before they invest in improvements, or prepare to put there home on the market.
GENERAL GUIDELINES IN SEARCHING FOR COMPARABLES:
GLA (LIVING AREA SQUARE FOOTAGE): 10% + or - and expanding search parameter as required if no comps are found with the standard search.
YEAR BUILT: 5 YEARS +OR- and expanding search parameter as required if no comps are found within the standard search parameter.
ONE MILE RADIUS (some exceptions are made if there are no comps within a mile or if golf course developments or different zoning uses make comps behond a mile).
At least 2 comp sales within last 3 months.
SOME ITEMS THAT CAN TYPICALLY BE ADJUSTED FOR VALUE:
Location.
Natural stone (granite, travertine, marble, limestone) counters and flooring, natural stone baths/showers.
Significant remodeling including new cabinetry, new carpet, new paint, stainless steel/high grade kitchen appliances, new doors, dual pane windows.
Significant site improvements such as professional natural stone patios, professional roofed/covered patios, custom landscape.
No single adjustment (i.e. view, location, upgrades) of an inferior or superior aspect of a comp sale in comparison to the subject property should be more than 10%.
Over-improvement of a property for the market area it is located in is a factor in valuation.
View (mostly for golf course properties).
Lot size (if significant difference in lot size).
FOR FHA:
Inspection guidelines for appraiser:
Safety, security, soundness and salability.
Utilities MUST BE ON!
If possible, agents should have utilities (electric, gas, water) turned on once it is determined that the buyer is acquiring FHA financing.
Appraiser must check all systems relating to utilities
Electrical outlets
Kitchen Appliances (if there is an opening for any appliance including refrigerator, it must be present).
Heating and air conditioning
Lights
Faucets and toilets
Auto garage door openers and sensors for safety.
Visual inspection of roof from exterior and interior through scuttle.
Pools must be filled with clean or relatively clean water and pool pump/equipment must be functioning.
Junk/debris from previous occupant should be removed (REO).
Hopefully you find this useful. And remember, if you are in the market to either buy or sell- I want to be YOUR SOURCE! Check out my website for even more information geared toward both buyers and sellers alike! You can even set up a custom search of your favorite neighborhoods by registering! At the click of a mouse, buy a house!
http://www.TopPalmSpringsHomes.com
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