“Some Features May Not have Relevance to Value”

Oh yes, this is so difficult. The biggest issue is when things are "taste specific."   Custom kitchens or custom anything and specific types/species of woods are not appealing to everyone and hence lower value.  I would think the radiant heat would be adding some value but yes, basements aren't worth as much (maybe 1/3" of key living space).

Good Morning Joe: This is a very common perception among the silent generation... basing it on my past experiences and encounters. It would be harder to convince them of the actual value but it will come around after their listings expired three times.

And I would not be the one who would be listing it the first and second time.

I see this so very often, Joe... homeowners putting in upgrades that appeal to them and are nice to look at, but don't really add serious value to the home or even provide value to a potential buyer. 

Big mistake so many home owners make.....not everything they do adds value. This is a huge variance.

Joe, Seller do always think their home is worth much more with unique additions that appraisers feel the value is much less! 

Good morning Joe,

Sounds like a unique home that would be interesting to see.

Good luck with the appraisal.

Make yourself an astonishing day.

Good morning Joe. There are things that do not fit into appraisal guidelines but do add value. It depends on the kind of appraisal and most refinances and mortgages don't do the kind that would allow for unusual properties.

Appraisers really have a hard time with some of these properties, I know. Because I have gotten a lot of calls over the years asking for my help in comps. Oh, why would they call me? Because I'm known for having had truly unique listings along the way.

Joe, great example of the difference between "value" and "market price". That's an especially tough concept to explain to homeowners who have lived in a property for a long time.

Joe Petrowsky appraisal is an art, not a science. Too many appraisers want to attack the problem as if it were science.

Replacemnt cost is a valid approach to appraisal, not only market value.

Bill Roberts

Joe-Appraisals for unique properties are art, some science,  and subjective to an extent. Tough to reconcile and with that difference of opinion it may be on the market a while.

Replacement value should not be confused with market value.

This is a good story to share.

Joe - yes it is all about the market forces.  With no buyers it is just a value to the owner.

Hi Joe -- most times pricing involves a combination of art and science.  It's not always so black and white.

I had a client tell me it cost her $3,000 to replace a boiler that had fallen down the hill, crashing into her home, and for that reason, she should get $10,000 more. What? She won't even get $3,000 extra. Maintenance does not equal value.

Joe love how you articulated this, indeed value to the home owner does not always translate to the value perceived by buyers, appraisers....and the list goes on and on.... Sounds to me they either become realistic or they need a cash buyer....Endre

Joe not having good comps is a problem, especially with unique properties

That is terminal uniqueness Joe. It is hard for some people to see around this.

I just went through that with a seller.  The house had many features that were just different and showed care and additional cost to build. It didn't justify the $250,000 additional value the seller wanted when comps were there to support lower values, land included.

Great discussion Joe, and value must be in the minds of the appraiser not beholder...support all you want with good comps but it does come down to that for sellers.