In case you missed it I have started a Reality Series all about what appraisers see in the trenches and just how we go about our daily business in home valuation.
Sorry I have been gone for a few weeks but I just became a NEW GRANDMA! Mia is her name and she is the apple of her grandma & Grandpa's eye. Here is a picture of our little sweetie.
Okay now onto the series.
Quality is one area that we as appraisers must determine when we inspect a home. Depending upon how the home is rated it can make a significant difference in the overall value of the home in question.
** Look for my upcoming blog of the UAD (Uniform Appraisal Data Set) Fun times ahead for appraiser and all readers/users of appraisal reports...If you had any trouble understanding appraisal reports in the past, look out it's going to get really interesting!
Anyway, when we inspect a home, we start from the outside and look at such things as construction materials used. Brick, Stucco (Real or Synthetic), Hardi Board, Vinyl, Stone, Masonite, LP Siding, etc. Then we look at the roof, what kind of shingles do we see. 20 year Composite, 30, 40 or 50 year Architectural Shingles, Cedar Shake, Metal Roof material, etc. We also look at exterior structures, pools, barns, decking, screen porches, open porches, Garages, ETC.
Then when we go inside and we literally look from the floor to the ceiling to see what quality items may exist. What is the trim work like? Is there a 2 story foyer, family room, etc. What is on the floor, hardwoods, tile, carpet, vinyl, etc. We look at the kitchen and baths to see what kind of counters, Granite, Corian, Laminate, what is on the floors, hardwood, tile, heated tiles, marble, etc, appliances, stainless, black, white, etc. ONE TIME we appaised a home with a custom French Stove with Gold Accents that cost $15,000! WOW. Yes you guessed it, they did not get full or even close to full credit for that item, but it sure looked nice!
We see how high the ceilings are, are there tray domed, coffered ceilings, etc. The variances in the amount of quality items that we see in homes is significant and they all have an impact upon value.
It is a good idea if you have someone selling a home with numerous upgrades to have them list them all out, including costs for the appraiser, just to make sure nothing is missed. This is not to say that everything added to a home will add value, especially if a home is over improved for the neighborhood, but many times there could be thousands of dollars in improvements that the appraiser needs to be made aware of especially if they are not obvious during a visual inspection of the home.
Here is a Reality Fun Fact: We appraised a home once in an upscale Golf Course Development where the wife was bummed because her husband only would allow her a $100,000 allowance for FAUX paint! I kid you not, everything was faux, not just the walls but the cabinets and celings and the murals on the wall were pieces of artwork! As you can imagine, there is no way they will get this kind of return, however someone may walk in and just love it. Hard to put a value on that!
So the moral of this quality story is two-fold, don't be afraid to make that list of the upgrades, including costs and give this to the appraiser or leave it on the counter when they are set to appraise the home because they need to get some credit for all of these amenities. Secondly, if you have a home that has ALL the bells and whistles and it is not typical for the area, then they may not get the value they hope for on all of these improvements. But they should look at it this way....they enjoyed it while they were there and for them it was worth something!
Thanks for stopping by.....
Mary Thompson
Certified Appraiser
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