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We recently had an appraisal done and it came back that the cost to replace our house would be $80 a square foot and he therefore deemed our house worth $205,000 with the property and all. He is telling us we could replace our site built home for $133,440. Our house is 1668 square feet with a detached garage that is 581 square feet. The garage he priced at replacing at $30 a square foot. Garage is in very good condition.
Anyways, if we could build a house like what we live in for $80 a square foot I might consider building it. LOL!
Would like to know if builders build homes today in the outskirts of Albuquerque, New Mexico for $80 a square foot.
I doubt the appraiser said you could build your house for $80 psf. Most likely he said the depreciated value is close to $80 psf. Not knowing how old your house is, not knowing it's condition, not knowing it's location makes it impossible to say either what it could be worth now or what it would take to build new. If you are in the Alb area, then you should know that Rio Rancho is a long value distance away from Corrales and Tijeras is certainly not the South Valley. Living up by the tram is a lot different than living in the Bosque, and a new house in a suburban location is a lot different than an old one off Central.
If I had concerns about an appraisal, I would hire an appraiser to review it for me and then explain to me what my options were after he explained to me what was being said in the appraisal. If you don't know an appaiser, DM NMAppraiser who responded to your other post. He has 30 years experience int eh Alb market and can help you with specifics that none of us that haven't worked that area in years would have.
I'm not sure why you're even concerned with the cost approach to value. First, we don't know the age or location of your place. Next, I can almost guarantee that the appraiser based the opinion of value upon the sales comparison approach.
Next, did you hire the appraiser or was it the lender, or a "representative" (AMC) of the lender? If it's the later of the two, then you are not named as a client nor as an intended user. You have every right to appeal the appraisal if you feel it's wrong, but most likely, it won't go far unless you have data to back up the appeal. As Goodpasture wrote, you could always pay an appraiser to perform a review of the appraisal report. It might, or might not, result in something. Or, you could have another appraisal performed for you and present it to the bank (who can't use it) as part of your appeal.
Thank you both very much. My concern with this appraisal is it is under $10,000 of what we needed, but I was explained the cost approach and he told me that the $80 a sf is what it would cost to rebuild what we have. I won't go back into that as I believe I explained that I highly doubt you can rebuild a house for $80 a sf.
I would like to appeal it. We are going for an FHA refinance and I was told originally that if the appraisal came in low we could do another one. I then was told after that FHA doesn't allow a second appraisal anymore. I guess I need to find out if I "can" appeal this appraisal.
I do think hiring an appraiser to review the report would be an excellent idea also. I really do value your opinions and I thank you for the time to respond. Have a good day!
I would like to appeal it. We are going for an FHA refinance and I was told originally that if the appraisal came in low we could do another one. I then was told after that FHA doesn't allow a second appraisal anymore. I guess I need to find out if I "can" appeal this appraisal.
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FHA assigns a case number to each property that stays with that address, legal, etc., for 6 months. Whoever told you that you could get a second appraisal mislead you. Can't legally be done. Sounds like someone fishing for an appraiser who provide them with "the highest possible value" rather than "the most probably selling price" as described in the definition of market value attached to the appraisal.
FHA assigns a case number to each property that stays with that address, legal, etc., for 6 months. Whoever told you that you could get a second appraisal mislead you. Can't legally be done. Sounds like someone fishing for an appraiser who provide them with "the highest possible value" rather than "the most probably selling price" as described in the definition of market value attached to the appraisal.
Interesting and common sense when I think about it. As far as market value I think it is based solely on the appraiser's opinion. He did not use any home that has sold. The comparables are all homes that are currently for sale. He actually put sales price on what they might sell at. The cost portion that I related is a formula they use when coming up with the value of our home. That is why I was concerned with the $80 sf thing. Its really all ridiculous and sad that it all comes down to one person's opinion of a property rather then hard facts.
Interesting and common sense when I think about it. As far as market value I think it is based solely on the appraiser's opinion. He did not use any home that has sold. The comparables are all homes that are currently for sale. He actually put sales price on what they might sell at. The cost portion that I related is a formula they use when coming up with the value of our home. That is why I was concerned with the $80 sf thing. Its really all ridiculous and sad that it all comes down to one person's opinion of a property rather then hard facts.
That doesn't sound like any kind of appraisal I've ever heard of or seen, and I've been doing this for 27 years. An appraisal is an opinion of value, based upon market evidence (hard facts).
That doesn't sound like any kind of appraisal I've ever heard of or seen, and I've been doing this for 27 years. An appraisal is an opinion of value, based upon market evidence (hard facts).
I agree. Something is not right.
Homewardbound, if you like, email me the report and I'd be happy to take a look at it. DM me for my email address.
MODS .... this is an offer of assistance, not an attempt to procure business.
I would love to but I only have a hard copy of the report. Dang!
fax it to us....dm either Schousse or I for our fax number
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