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Old 10-02-2019, 10:48 PM
 
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What amenities are considered in an appraisal and how much value do they add? For example, is a safe room considered an amenity and does it add value? How about a butler's pantry with quartz countertop and additional sink and dishwasher? A gym room, playroom and home theater?
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Old 10-02-2019, 10:59 PM
 
Location: on the wind
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Quote:
Originally Posted by MaryoVilla View Post
What amenities are considered in an appraisal and how much value do they add? For example, is a safe room considered an amenity and does it add value? How about a butler's pantry with quartz countertop and additional sink and dishwasher? A gym room, playroom and home theater?
IMHO the appraisals on my homes haven't really reflected such details. They were based more on the property itself: location, acreage, build type (brick, log, masonry, stick built, etc), square footage of the house, number of bath/bedrooms, outbuildings, garage, etc. A lot of times the appraiser doesn't even set foot in the house, they look at the assessed tax value, local comps, etc.
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Old Yesterday, 04:26 AM
 
Location: The Triad (NC)
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Quote:
Originally Posted by MaryoVilla View Post
What amenities are considered in an appraisal
and how much value (will/can) they add (beyond the comps of similar properties)?
Few improvements will hold anywhere near their cost to install.
Bad condition, poor install and other negatives are likely to have more impact.
Quote:
For example is a safe room... a butler's pantry... quartz countertop... additional sink and dishwasher?
A gym room, playroom and home theater?
How do yours compare to the examples of them in the homes of your comparable neighbors?
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Old Yesterday, 07:15 AM
 
Location: Raleigh NC
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it *sounds like* with your other thread, that you have designed and built a house and now your mortgage lender has received an appraisal below what you'd like the home to be worth, as well as possibly what you need the value to be for your expected mortgage.

When you custom build a home, and trick it out to your tastes, then you should expect that a lot of the "amenities" will be coming out of your pocket.
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Old Yesterday, 07:38 AM
 
Location: Grosse Ile Michigan
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We have some special things like a standby generator, tankless water heater. Catv phone and coaxial cable wires to every room, a "smart" boiler for heat, special lighting in some area of the house, programmable thermostats, a few other similar things. Some appraiser say "So what? It makes not difference" Others tacked on a small increase like $5000.

Our Swimming pool is the same. It is a large 18x40 pool that is enclosed in a greenhouse like thingy that can be opened up for nice days. Normally swimming pools count as nothing, and most appraisals put it at $0 value, but some appraisers added $5,000 - $20,000 because it is enclosed. One guy counted it as part of the square footage of the house, but the lender rejected that and made him modify the appraisal.
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Old Yesterday, 01:06 PM
 
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Quote:
Originally Posted by MaryoVilla View Post
What amenities are considered in an appraisal and how much value do they add? For example, is a safe room considered an amenity and does it add value? How about a butler's pantry with quartz countertop and additional sink and dishwasher? A gym room, playroom and home theater?
Appraisals reflect what the market will pay, or not pay, for amenities.

Are you in an upper end price range? In my area, for custom homes, very few "extras" add value as they are customized to the individual buyer. Each home has different upgrades based solely on the original buyer.

For example, one home may have a spa and another has a summer kitchen. One doesn't have more value than the other, it just determines who the next buyer will be.

For things like extra rooms, gym, playroom, etc., those areas are included in the overall living area and the room number and type do not typically affect value. Again, buyer preference, some want more rooms, some larger rooms. That's why, usually, only the living area is adjusted.

As far as a safe room, I've only seen one in over 20 years. An appraisal considers "most probable" price. If only a few homes in the entire area have one, then it's not most probable. Any buyer who wants this feature would need to pay for it as most lenders don't want to finance a feature that could greatly reduce the number of potential buyers willing to pay extra for a specific item.

In reality, there are very few "perfect comparables". So, it's kind of a balancing of features, with different upgrades being comparable, without an adjustment for either one.
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Old Yesterday, 05:14 PM
 
Location: Denver CO
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Your idiosyncratic choices about what you wanted in your house do not add the kind of value it appears you believed they were going to add. Maybe they will be of value to a potential buyer who happens to have similar tastes and sensibilities and wants to buy the house specifically because of those amenities. But in terms of a more general valuation? Nope. It will go by size, condition, location, etc., and not how you individually chose to utilize that space.
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Old Yesterday, 06:03 PM
 
Location: San Francisco Bay Area
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Quote:
Originally Posted by MaryoVilla View Post
What amenities are considered in an appraisal and how much value do they add? For example, is a safe room considered an amenity and does it add value? How about a butler's pantry with quartz countertop and additional sink and dishwasher? A gym room, playroom and home theater?
I have a question about your last query: "A gym room, playroom and home theater?"

Are those three separate rooms or one multi-purpose room, such as one might find in a finished basement?

If your house is a multimillion dollar house ($10 million plus) where it might be common to have a safe room, I suppose it would be OK; otherwise, seeing one mentioned in a listing would at least cause me to question how safe the neighborhood is. Do you want to put that concern into the minds of your prospective buyers?
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Old Yesterday, 06:16 PM
Status: "Hard Money Lender " (set 7 days ago)
 
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Quote:
Originally Posted by SFBayBoomer View Post
I have a question about your last query: "A gym room, playroom and home theater?"

Are those three separate rooms or one multi-purpose room, such as one might find in a finished basement?

If your house is a multimillion dollar house ($10 million plus) where it might be common to have a safe room, I suppose it would be OK; otherwise, seeing one mentioned in a listing would at least cause me to question how safe the neighborhood is. Do you want to put that concern into the minds of your prospective buyers?


Interesting question!

I agree .. does a safe room in a normal context denote a dangerous area to live in or just an occupant that feels the extra safety is needed. I can see Bill Gates, Warren Buffett etc needed such amenities but they are not terribly worried about appraisal value. But in a normal residential context is this a positive or a negative?

I also agree that most upscale amenities don’t pencil out in terms of added value. Usually the amenities dictate the type of buyer that ends up purchasing but not sure they add a ton of value. Swimming pool for example, in Spokane, is a net negative because it reduces the number of potential buyers. Most folks don’t want the maintenance or cost for something that is used just a few months of the year. Phoenix - almost impossible to sell without a backyard pool as I found out years ago.

I see safe rooms in some of the whacky listings coming from the last American Redoubt aka North Idaho. There is a “defensible space, safe room bunker mentality” up there that comports with folks looking for safe rooms. None of these are $10 million compounds, they are usually a older single wide on 10 acres of logged over land occupied by potential or active militia members (Google 3% Idaho). I did a hard money loan on a property like that and when I got it back, the cleanup was ungodly and safe room was laughable .. sorry, I digress off topic
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Old Yesterday, 06:19 PM
 
Location: Brentwood, Tennessee
44,794 posts, read 43,276,849 times
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Quote:
Originally Posted by SFBayBoomer View Post
If your house is a multimillion dollar house ($10 million plus) where it might be common to have a safe room, I suppose it would be OK; otherwise, seeing one mentioned in a listing would at least cause me to question how safe the neighborhood is. Do you want to put that concern into the minds of your prospective buyers?
"Safe rooms" in my area are to protect from tornadoes, not home invaders. I hope the OP clarifies.
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