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Old 10-03-2019, 09:27 PM
 
294 posts, read 119,451 times
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Originally Posted by SFBayBoomer View Post
I sure did, I also found them online, I might give them a call. Thank you.
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Old 10-03-2019, 09:29 PM
 
294 posts, read 119,451 times
Reputation: 276
Quote:
Originally Posted by Nik4me View Post
Forgot where I have read a story: the guy was afraid of the economy collapse - so he bought gold coins.
He wanted to stash those gold coins and used a contractor to dig out a space and build a “secret” hiding place at his rural “hideout” location.
After he hid $130k worth of gold coins in the secret place- he did not check on it for 2 years.
When he did- the gold coins were gone. The guy suspected a contractor- but could not prove anything...
My advice: don’t call it a “safe” room to an architect or contractor when building- call it a playroom for the children with the hidden door- or a future spa for yourself, or recording studio, etc
Then use like you intended- don’t tell anyone.
Ha! too late, it's on the blue print. I'm not too worried, with 10 acres around me, a couple of German shepherds and a good security system should do the trick. Thank you.
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Old 10-03-2019, 10:09 PM
 
Location: Los Angeles
3,619 posts, read 2,327,634 times
Reputation: 10913
Quote:
Originally Posted by Spokaneinvestor View Post
you would be well served to engage with a high dollar appraiser upfront
Yeah, that would be me. The issue we have when appraising high value homes with custom amenities is that we very often don't know exactly what is inside the comps we are using. If we can't see it in the photos or comments on the MLS it's impossible to know whether they also have a granite butler's pantry or not, for example. Remember, what we are doing is making plus or minus adjustments to the comps. If we don't know whether they have $ 20,000 worth of closet organizers or not, we can't make an adjustment for yours. As for the safe room, VERY few people would advertise that on the MLS, kinda defeats the purpose. It also falls into the category of "value in use" which means that it has value to you, but not to the typical buyer in your neighborhood. Similar case with home studios. I've done some legendary rock musician's homes with incredible studios. Unfortunately, the space gets counted as a rec room or bonus room since the electronic equipment is all personal property. Besides, most buyers don't need a soundproof room. My suggestion would be to build the home you want with the amenities you desire and don't worry about whether they add significant value, because they probably won't.
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Old 10-03-2019, 10:28 PM
 
294 posts, read 119,451 times
Reputation: 276
Quote:
Originally Posted by JustMike77 View Post
Yeah, that would be me. The issue we have when appraising high value homes with custom amenities is that we very often don't know exactly what is inside the comps we are using. If we can't see it in the photos or comments on the MLS it's impossible to know whether they also have a granite butler's pantry or not, for example. Remember, what we are doing is making plus or minus adjustments to the comps. If we don't know whether they have $ 20,000 worth of closet organizers or not, we can't make an adjustment for yours. As for the safe room, VERY few people would advertise that on the MLS, kinda defeats the purpose. It also falls into the category of "value in use" which means that it has value to you, but not to the typical buyer in your neighborhood. Similar case with home studios. I've done some legendary rock musician's homes with incredible studios. Unfortunately, the space gets counted as a rec room or bonus room since the electronic equipment is all personal property. Besides, most buyers don't need a soundproof room. My suggestion would be to build the home you want with the amenities you desire and don't worry about whether they add significant value, because they probably won't.
Mike, thank you. Exactly my point when it comes to appraising new custom home, I felt a little frustrated because it seems like there is no system in place to account for things I've added. I have some marble countertops, but yet no value for that, it just doesn't make sense. I've looked the other comps, one has not been live in for 10 years and has not been maintained but that was used as comps, how come? In the end, we will enjoy the home, I just feel like I'm getting robbed left and right lol.
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Old 10-04-2019, 07:15 AM
 
Location: Raleigh NC
10,119 posts, read 7,594,854 times
Reputation: 8737
Quote:
Originally Posted by MaryoVilla View Post
Actually, it's quite the opposite. Its a custom home designed by an architect, contract price is $2.2M, it appraised at $2.6M. I'm well aware I'd be paying more for a custom home and I won't have to bring but I'd still like to know I'm getting some value to the features/amenities I'm adding. If I have a dedicated safe room and I spent $200K on it but the appraiser doesn't count it all then that doesn't make sense to me. I'm not expecting to get all value back but it should be at least considered and have some value.

You probably know that an appraisal is an opinion of value and it's extremely subjective, especially in a custom home, I just want to make sure I'm not getting the short end of the stick. I'm a numbers kind of person, I have a spreadsheet and that I account for everything almost down to the type of faucet and its cost, if something doesn't add up to me then I have to find out why.

Not worry so much about the total cost but rather why something cost or don't cost that much. That's all.
with this and later answers, I can't say I understand the concern.

When I said "you designed", I didn't mean literally you ... I meant whoever was the architect did so based on your requests and input....which sounds accurate.

You're building a custom home. You are doing it to your precise desires. You could very well be the only person on the planet with these precise desires. That means what you "value" may have no market value to anyone else.

However, you've also said the home appraised for almost 20% above what you're spending. So I don't understand the concern.

All across the board, there are features that cost more than their "market value" in an appraisal or sale. Someone's mentioned a pool - that's the #1 item.

Garages are about the same. A 2 car garage is worth something, but not as much as it costs to build. A 3rd bay adds some value, but not the marginal cost. Get up into a 5 or 7 car garage, and it's not really worth more than a 3 car garage .... because almost no one has a need for that many garage spaces.

Or a faucet. You can go to Home Depot and buy a $50 kitchen faucet. Or, you can have a solid gold faucet in the shape of a swan head with water coming from the mouth for $50,000. They're doing the same job, therefore they're worth the same.

This would hold true for your marble countertops. Is marble "expected" at a certain price point over cultured marble? Sure. But they're both just holding your toothbrush and other toiletries.
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Old 10-04-2019, 08:26 AM
 
654 posts, read 1,397,046 times
Reputation: 598
Appraisals take into account the overall quality/value of finishes--not each individual choice separately. So if you spent $1000 on the bathroom countertop or $10,000, both get put in the "quality' category instead of 'budget.' A diamond-encrusted mirror may add value to a buyer, and cost more to insure, but the appraisal value of the house isn't impacted as much as the value of the mirror itself.

Value of features varies based on location: An appraiser in a tornardo-likely area likely has a set value for a safe room. Likewise, Beverly Hills may have a set value for safety/security safe rooms. Same with pools--added value in some areas, negative value in others.
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Old 10-04-2019, 08:39 AM
 
Location: Living on the Coast in Oxnard CA
15,997 posts, read 27,182,290 times
Reputation: 20937
Quote:
Originally Posted by thebigW View Post
one home may have a spa and another has a summer kitchen.
Now I need to know: What is a summer kitchen?
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Old 10-04-2019, 08:42 AM
 
Location: NC
6,768 posts, read 8,334,328 times
Reputation: 14156
Value is appraised differently for different purposes.

To the owner/designer the $value is what it cost plus a bit more for the joy of the combinations.

To the mortgage lender it’s the $ that the average buyer in that specific area would pay for a house and property generally like yours, without the personal touches.

For the insurance appraisal it depends on the contract and either accepted replacement costs or the cost to give you back a reasonable living space.

All the stuff you add which meets your personal needs and dreams is both a benefit and a liability for re-sale. So it’s good the lender sees it as neutral.
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Old 10-04-2019, 08:44 AM
Status: "Hard Money Lender " (set 10 days ago)
 
269 posts, read 56,378 times
Reputation: 510
Quote:
Originally Posted by SOON2BNSURPRISE View Post
Now I need to know: What is a summer kitchen?
In our area also referred to as an “outdoor kitchen”. Not sure how an appraiser looks at outdoor kitchens but in our area buyers are lukewarm on them because they tend to look run down after a few years of weather damage to appliances etc. Had a property in Newport OR on the beach with a outdoor kitchen - sea salt in the air, rain and sun made it look derelict in about 18 months.
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Old 10-04-2019, 08:50 AM
 
Location: Living on the Coast in Oxnard CA
15,997 posts, read 27,182,290 times
Reputation: 20937
Quote:
Originally Posted by BoBromhal View Post
Garages are about the same. A 2 car garage is worth something, but not as much as it costs to build. A 3rd bay adds some value, but not the marginal cost. Get up into a 5 or 7 car garage, and it's not really worth more than a 3 car garage .... because almost no one has a need for that many garage spaces.
I would love a home with a 7 car garage. I wish my neighbors had a 7 car garage. Then they could park the cars off the street.

I worked on several homes that had garages that were for more than 7 cars.. One that held 20 cars. It didn't have 20 garage doors. Still it was awesome.
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