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Old Yesterday, 10:58 PM
 
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In a home appraisal, can a difference in quality of construction make a difference when assessing appraisal value. For example, new construction is rated Q3 same as other homes that are 11 years old and older. new construction home has been designed by the owner. Should it be Q2 instead of Q3?
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Old Today, 05:07 AM
 
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Just because it is brand new, it does not mean the quality is better than other homes.
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Old Today, 07:51 AM
 
Location: Grosse Ile Michigan
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Makes not difference.

this is not the reason, but the quality of lumber had been on a steady decline for over 50 years. Thus, if it is wood, newer is going to be generally lower quality. Although ten years if not going to make a huge difference. Lumber quality decline pretty much bottomed out a while back so the ongoing decline is pretty incremental.

If the house if built out of steel or using Quaker/Amish milled old growth lumber, then it would be higher quality, but it still would not make any difference in the appraisal. Few people care about purported quality. It is mostly just measuring square footage and applying comps. there are a few things like AC that will impact the comp selected or require a minor adjustment to the comparison amount.

We have had our house appraised often enough that i can look at recent sales and tell you within a few percentage points exactly what an appraiser will come in at. It is really just a case of figuring out what homes they will use as comps and what adjustments they will make.

For example, a lot of houses in our area have water access and a dock. We have water view, but we do not own the waterfront property in front of our house. Most appraisers adjust comps with a dock by $15,000. Seems kind of low to me, but that is what they consistently use.


Our house is 186 years old. Some appraisers adjust it down for the age, some adjust it up for the age. Most say it has no impact. either way the adjustments are very minimal. Except one. One guy clearly hated our house and asked us why we did not tear it down and build a new house on this nice lot. He elected comps that were wrecks and not on the water and ignored comps that were more similar. We asked for a different appraiser, but the lender said they could not do that. So, we got a different lenders and they sent a different appraiser who came back with an amazingly higher appraisal.

All the appraisers do is measure your house, Select what they consider to be comparable recent sales in your area and adjust the sales prices up or down a little bit. Then they apply the average price per square foot to your square footage. Sometimes they will make very minor adjustment up or down for differences in your house vs typical comps.

If you house is typical and there are a lot of sales in your area, it is a very easy exercise for them. For us, not so much. Our house is unique. Most of the houses around us are unique and sales are pretty rare. Since we are on an island, houses in other communities are not valid comps. Since we are ont he water, inland houses ont he island are difficult to assess as comps. The value of being on the water and/or water access seems to change dramatically from time to time. Right now, it add very little value.
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Old Today, 07:03 PM
 
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Quote:
Originally Posted by MaryoVilla View Post
In a home appraisal, can a difference in quality of construction make a difference when assessing appraisal value. For example, new construction is rated Q3 same as other homes that are 11 years old and older. new construction home has been designed by the owner. Should it be Q2 instead of Q3?
These are two different ratings. There is Quality Q ratings which are based on the construction materials. Then there is the Condition C ratings. C1 is new an 11 yo home would typically be a C2 or C3.
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