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Beyond condo's, there are very few 'identical houses' and even fewer identical appraisers ... and market circumstances. From what I've seen, appraisals are as subjective as the value of 'upgrades,' the condition of the property or how banks 'weigh' appraisals when making loans. Probably one of the most meaningful metrics is price per sf, but, even that can vary considerably based on floor-space measurement and other factors.
If you are trying to 'influence' an appraisal, your best shot is to provide the appraiser with your facts and logic ... and tell him what type of appraisal you are hoping to get. Of course, these days both appraisers and banks have gotten ultra-conservative. If you get a lowball appraisal on a property you are attempting to buy/sell for more, the bank is likely to expect someone to come up with the difference between the appraisal and agreed sales price. Similarly, if you are trying to influence a seller to accept your offer, based on comps or similar appraisals, you can spell-out your 'case' for them and hope they buy-into your rationale. Of course, another factor in appraisals today is that most are using short-sales and foreclosures (distress sales) in comps, while previously they did not. (The notion of some sellers that their property should sell for more, because it is not a short-sale or foreclosure,--- has no real merit in today's market).
Oops! sorry, I just realized you were looking for information from Appraisers. I'm just someone who has been through the process several times and learned a few lessons.
More than one comp will be used. If there are at least 3 more recent comps in the area, regardless of model, an appraiser may not even use the one of the like model. You have no control over this.
In my area, appraisers do their best to avoid comparing 2 story homes with ranches, when possible.
Not enough information to say. One comp sale does not offer enough evidence to form a value opinion on a similar house. At least three sales are used, and the most probable price based upon the analysis of these sales will determine the market value of the home being appraised.
OK, I had to get out of that other appraisal thread. It just got to be too long.
So, question to appraisers from someone NOT in the industry.
House A and House B are identical...called the "Jefferson Model".
House A sells before house B. (House B has a higher asking price) . House A sells for $450K.
House A has small boxy rooms, House B took down walls for open concept.
House A has an unfinished basement. House B has a finished basement with Heat, Air, etc.
House A has not updated kitchen or baths. Hosue B has updated kitchen baths and wood floors.
House A may get some water. House B is up high and dry.
No other "Jefferson Model" has come on the market, so I assume that the appriaser is going to take the comp from House A.
Say House B sells for $490K. Will it be appraised at $450 since that's what House A appraised for?
Thanks.
There most likely will not be an adjustment for small boxy rooms vs. open plan.
There would be an adjusment for finished basement. Typically $10-$15/sq. ft where I am at. So upward adjustment of $10-$15k if it is 1,000 finished sq. ft.
Updated kitchen and baths will also get an upward adjustment. Don't have enough info to put a $ amount on it.
So, no just because "A" sold for $450k does not mean "B" will appraise for $450k. Also, there will be 2-7 more comps on the report.
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