Foundation Problems Effect On Value

[DARREN GODFREY]

I refuse to get into a cost to cure....look at the evidence , they tried to cure it and it failed and further more it's in the territory of obsolescence since it will not bring the house up in value without a major redesign that is marketable in this neighborhood ... in other words I am pretty certain the only purchasers will be investors who want lot value if they don't get the point that the market does not want the house in it's current configuration.

 

[DARREN GODFREY]

I refuse to get into a cost to cure....look at the evidence , they tried to cure it and it failed and further more it's in the territory of obsolescence since it will not bring the house up in value without a major redesign that is marketable in this neighborhood ... in other words I am pretty certain the only purchasers will be investors who want lot value if they don't get the point that the market does not want the house in it's current configuration.

Seems like Lot value is driving this problem. Maybe building a bigger fancier house of the period is better. Effectively lowering the percentage of the lot value ratio of the total value.

My thoughts exactly and I have told the homeowner to seek out a engineer and a construction company...this will be easy with all the tear down and builds going on in his legal subdivision...this is one of those cases where he needs to pick up what I am laying down.

 

[Carnivore]

I refuse to get into a cost to cure....look at the evidence , they tried to cure it and it failed and further more it's in the territory of obsolescence since it will not bring the house up in value without a major redesign that is marketable in this neighborhood ... in other words I am pretty certain the only purchasers will be investors who want lot value if they don't get the point that the market does not want the house in it's current configuration.

My thoughts exactly and I have told the homeowner to seek out a engineer and a construction company...this will be easy with all the tear down and builds going on in his legal subdivision...this is one of those cases where he needs to pick up what I am laying down.

Here send this link to owners. The explanation is written for the everyday homeowner.

https://www.thespruce.com/remodel-or-tear-down-rebuild-your-house-1822447

 

[Joe Flacco]

The new construction in Bethesda for $1.5 - $2 million are best described as q3 quality construction. They are like $150 - $175 per SF GBA including EI.

 

[Joe Flacco]

Site values in Bethesda range from $600k to $2+ million depending on location, size, school district, etc. It is complicated.

 

[Terrel L. Shields]

refuse to get into a cost to cure....look

If they spent that kind of cash, the lender needs a professional engineer or foundation repaircompany to estimate the repairs

 

[J Grant]

I refuse to get into a cost to cure....look at the evidence , they tried to cure it and it failed and further more it's in the territory of obsolescence since it will not bring the house up in value without a major redesign that is marketable in this neighborhood ... in other words I am pretty certain the only purchasers will be investors who want lot value if they don't get the point that the market does not want the house in it's current configuration.

If this is your conclusion, then the HUB would not be existing , but as vacant site, which perhaps should have been the HBU on the prior appraisal- what was your HBU on the first appraisal?

2 years ago I was engaged to perform an appraisal in a Tony area in the DMV (Bethesda), the house had an obvious foundation problem....However as I examined the neighborhood I discovered that the older houses (The subject was built in 1977) were being bought up at around $790k then being torn down and built up with Q1 and Q2 caliber homes that sold from 1.5 to 2 million ...

 

[DARREN GODFREY]

Here send this link to owners. The explanation is written for the everyday homeowner.

https://www.thespruce.com/remodel-or-tear-down-rebuild-your-house-1822447

Excellent article I will forward it to the H/O

 

[J Grant]

OK here is the situation,

If this is your conclusion, then the HUB would not be existing , but as vacant site, which perhaps should have been the HBU on the prior appraisal- what was your HBU on the first appraisal?

2 years ago I was engaged to perform an appraisal in a Tony area in the DMV (Bethesda), the house had an obvious foundation problem....However as I examined the neighborhood I discovered that the older houses (The subject was built in 1977) were being bought up at around $790k then being torn down and built up with Q1 and Q2 caliber homes that sold from 1.5 to 2 million ...

Was the prior appraisal engaged for lending purposes?

 

[DARREN GODFREY]

If this is your conclusion, then the HUB would not be existing , but as vacant site, which perhaps should have been the HBU on the prior appraisal- what was your HBU on the first appraisal?

2 years ago I was engaged to perform an appraisal in a Tony area in the DMV (Bethesda), the house had an obvious foundation problem....However as I examined the neighborhood I discovered that the older houses (The subject was built in 1977) were being bought up at around $790k then being torn down and built up with Q1 and Q2 caliber homes that sold from 1.5 to 2 million ...

I left it as residential period , due to the possibility of using the foot print for a rebuild . The problem with saying as a vacant lot is that there are 3 different possible approaches that would make the property marketable... And this is a grey area for me , I assumed that residential usage as itself covered HBU due to zoning...like i said I feel this is a grey area due to my cost knowledge limits in all of these engineering and construction options, in other words I am not versed enough on cost to deal with absolutes.