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Old 11-02-2009, 04:48 PM
 
256 posts, read 784,405 times
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My sister's ex is doing a refi on their jointly owned home. The ex is buying out my sister on the house, so the amt. of the appraisal is what she has to go by when determining how much equity there is to divide.

The first appraisal ordered by the loan company came back at $180,000. The loan company ordered a second appraisal which came back at $196,000. Neither appraisal gives any credit for a beautiful two car detached garage. The loan company tells my sister that an appraiser has the "option" of including detached buildings in the appraisal.

Obviously it would be best for her to order her own appraisal but there is very little money here and she'd rather not spend an extra $350. We are just wondering about the honesty of the loan company regarding the "option" to include the value of the garage.

Any info at all will be very much appreciated!
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Old 11-02-2009, 05:12 PM
 
Location: Salem, OR
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I've never heard that and they are always included on appraisals here. Shops and garages are worth money.
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Old 11-02-2009, 05:41 PM
 
Location: OK
2,512 posts, read 4,160,288 times
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Garages are nor part of the GLA (Gross Living Area) but do have a contributory value.

However, if all the comparables used in the appraisal have similar garages there won't be an adjustment.

Please ask your sister to convey to the loan company that the person who told her that is a moron and should take some basic appraisal classes so he/she is better equipped to deal with his/her professional challenges.
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Old 11-02-2009, 05:49 PM
 
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If this is not a misunderstanding I would think this is illegal. The mortgage is for the land and all the improvements, can't imagine how a garage could not be included. Even in mild climates where garages are not a necessity they are still a plus. Heck paving and even nice gravel off street parking generally add value ...
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Old 11-02-2009, 05:55 PM
 
Location: Colorado Springs, CO
1,571 posts, read 3,475,330 times
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A detached garage should be included - it may or may not have much value (depends on the area) - there may or may not be a price adjustment (depends on the comps) - but it's clearly part of the property.
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Old 11-02-2009, 06:16 PM
 
256 posts, read 784,405 times
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Thank you all SO MUCH! The appraiser took a photo of the garage, which he labed a shed. This a large shed on the property but there is no photo or mention of it at all.

Anyway, in spite of the photo, there is a place on the appraisal to check off whether the is a garage OR a shed, and that area is not checked.

So like I said, we are a little suspicious that the ex has gotten an appraisal that is just high enough to provide him with the amount of cash out that HE DECIDED she should accept in settlement, but that is deliberately no higher than that amount.

This is in Delaware. I guess we should call some DE appraisers tomorrow and ask them if the garage should be included...maybe in DE it doesn't matter.
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Old 11-02-2009, 06:24 PM
 
Location: Virginia Beach, VA
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have your sister pay for her own appraisal!! that is whacked!!
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Old 11-02-2009, 11:39 PM
 
256 posts, read 784,405 times
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No way to edit a post on here? Well I meant to say in my second post, in the third sentence, that "There IS a large shed on the property" along with the garage. The appraiser did not photograph or mention the shed, which is very nice, and although he photographed the garage, he doesn't mention it in the appraisal (except that the photo is included) or show any value adjustment for it.
Thanks so much for all comments!
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Old 11-03-2009, 05:33 AM
 
Location: OK
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Quote:
Originally Posted by Decorchallenged View Post

This is in Delaware. I guess we should call some DE appraisers tomorrow and ask them if the garage should be included...maybe in DE it doesn't matter.
Yes it does. USPAP has been adopted as law in all states.

Your sister should have her own appraisal done or, at a minimum, have the current appraisal reviewed by a competent review appraiser.
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Old 11-03-2009, 05:37 AM
 
Location: OK
2,512 posts, read 4,160,288 times
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Quote:
Originally Posted by Decorchallenged View Post
The appraiser did not photograph or mention the shed, which is very nice, and although he photographed the garage, he doesn't mention it in the appraisal (except that the photo is included) or show any value adjustment for it.
Thanks so much for all comments!
Sheds, if they are not on a permanent foundation, are considered personal property and are not be included in the valuation of real estate.

As I mentioned before, if the garage is similar to the garages of the comparable sales used, no adjustment is warranted.

Just the fact that a photograph of the garage is in the report appears to indicated that mention of the presence of a garage is not purposely omitted.
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