Home value help? Should I change the layout? (floor, counter, cabinetry)
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Hi All,
Hopefully someone can help me out with a question on this. I recently took over a family home and decided to refinance to consolidate some bills and add a deck. I ordered the appraisal and to my surprise he valued the home at $200,000 less the the appraisal that was done in 2011 by the original family owner for the same type of loan. When I questioned him on it he said the the home took a big hit because of the curb appeal... no decking, and the fact that the entire downstairs was one large open concept kitchen and living area. He said that the room is too large and drastically needs divided. When the house was originally built my family wanted a large area for entertaining family and friends on the holidays, which I personally love about the house and have always seen it as a plus. Does this sound accurate or should I divide the down stairs up? The downstairs is 2009 sq ft with 2 bathrooms and also opens into a large pool area which is great for entertaining. The upstairs still has 4 bedrooms and 3 bath, but he listed the house as unfunctional? Anyone out there know about these things? I love it the way it is, but its too big for me so I will more than likely be selling in a few years and would hate to lose value over an easy fix
Very very very hard to say without LOTS of pictures of the home AND the comparable homes in the SAME neighborhood that have recently sold.
I suspect you may have run into an appraiser that is going a little too much by their own PERSONAL tastes and it MIGHT make sense to really dig into the comps that were used to arrive at the stated value. Unless the place was sort of "not yet done" in 2011 and somebody REALLY cheaped out on finishes it seems unlikely that there is truly a $200k devaluation.
I will say that I have encountered some homes that were not well thought out during renovations -- when folks "open things up" so much that there is lack of wall space in the kitchen for adequate cabinetry, the living area has nothing to hang artwork, the entry is literally swinging right into big barn of space that lacks closets or anything to give privacy to the rest of the home it certainly would make sense to at least consult with a skilled designer that could perhaps make suggestions that will increase the range of buyers that might consider the home. Sometimes this can be accomplished with just thoughtful changes to a few windows, maybe appropriately grouped furnishings, and creative use of rugs / floor coverings. Other times you may need to construct or buy some kind of "room dividers", worst case some actual walls / pocket doors / built-in cabinetry may be wise to install. If your 2000+sq ft is a "box" of 40x50 ft or something similar and there is no real "view" that is screaming for at least a designer to make changes that make it less of "blank slate"...
As far as "easy fix" I fully agree that a home lacking true "see it from the street and fall in love" curb appeal will ALWAYS take longer to sell AND sell for less than a place that has CHARM / UTILITY. In different areas that means different things -- a Spanish style mission home might be THE thing in LA, in the northeast maybe that means a Cape Code, Miami Beach a perfect Art Nouveau, Wyoming something that screams "Big Sky Country". In MOST cases some paint, landscaping, maybe switching some COSMETIC elements could be done VERY affordably for BIG impact.
Location: Stuck on the East Coast, hoping to head West
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If your property is a custom build, then it's going to be extremely difficult to get an accurate appraisal to begin with. Appraisals are all about comparisons and if it's a custom home, there aren't going to be any.
If it's not a custom home then I would like comparable homes that have recently sold. I can easily find that info online. Or I'd ask a realtor and, hopefully, see some pictures.
As far as open-concept, in my area, open concept is not nearly as big a selling point as it used to be. Probably because people randomly starting removing walls. Sometimes, they even resorted to doing weird wall cut-outs that left rooms that just didn't function.
I did a refi earlier in the year and my appraiser was way off. He randomly chose 2 houses in my neighborhood. One homeowner had sold cheap because of a divorce and the other because they were in the midst of a court case with the HOA.
Granted, there is no set rules, or formulas for appraisals. But, what you have indicated does sound suspect.
Is the house in a declining or transitional area? Could it be an improved vs. land cost situation?
I find "curb appeal" a rather lacking sense of appraisal knowledge. What are the comparables? Size? Function? Year built (comparably?)? I also find a $200k hit in 4yrs extreme- unless you're in Detroit!
I remember seeing a '60s home where the front door basically opened up in the middle of the long side of a huge empty rectangle of a room and it had all the grace of an airport terminal. The new owners built a freestanding foyer into the room -- a big box of a closet, very modern lines -- about 10 feet from the front door but directly in line with it. There were individual modern pendants that hung down to light the area in front of the closet. So you walked in, hung up your things, and then could go on either side of the box into the room. The back/ facing the room had a console table & sculpture up against it. A very practical, sleek, and affordable solution to that room's problems.
most appraisers come in right around where the house is selling for. maybe get a realtor out there to take a look and a different appraiser to give you a better idea before you spend the money to change things up. sometimes just staging the house, you may be able to divide the room just with furniture and a few nice room dividers. putting away all the clutter and freshening the curb appeal will help.
Hi All,
Hopefully someone can help me out with a question on this. I recently took over a family home and decided to refinance to consolidate some bills and add a deck. I ordered the appraisal and to my surprise he valued the home at $200,000 less the the appraisal that was done in 2011 by the original family owner for the same type of loan. When I questioned him on it he said the the home took a big hit because of the curb appeal... no decking, and the fact that the entire downstairs was one large open concept kitchen and living area. He said that the room is too large and drastically needs divided. When the house was originally built my family wanted a large area for entertaining family and friends on the holidays, which I personally love about the house and have always seen it as a plus. Does this sound accurate or should I divide the down stairs up? The downstairs is 2009 sq ft with 2 bathrooms and also opens into a large pool area which is great for entertaining. The upstairs still has 4 bedrooms and 3 bath, but he listed the house as unfunctional? Anyone out there know about these things? I love it the way it is, but its too big for me so I will more than likely be selling in a few years and would hate to lose value over an easy fix
Thanks
2000 sq feet for essentially one room! Wow, that's big. You know you can zone the room with furniture placement. Surely you don't just watch TV in such a big space. What other things do you use the room for? How big is the kitchen? And the bathroom don't open out into the room, I hope? How about some more info?
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