$25,000 Adjustment for EV Charger

[timd354]

I saw something in an appraisal report yesterday that I have never seen before and that was a $25,000 adjustment made to 3 comparable sales because the subject proeprty (which has a $310,000 contract price) has an electric vehicle charger. From the appraisal photos it looks like a level 2 charger and the cost for install such a level 2 charger should be no more than $1500 ($3500 if a home's electrical panel also needs to be upgraded). Of course there was no explanation in the appraisal report of how the appraiser derived the amount of the adjustment. There was also a fourth "comparable" included in the report that also had an EV charger, but that supposed comp was useless since it literally had 3x the GLA of the subject property and was in superior, gated community.

 

[NC Appraising]

Sounds like the report that I just finished. How did you get it so quickly?

I used a comp just becuse it had solar panels to avoid across the board adjustments and to support it marketability. Don't you love it when we use stupid sales just for bracketing or to include a sale with a similar feature?

Perfect example when using a comp sale with a similar feature goes wrong. Can't die on every hill. Sometimes we just have to do stupid things just to keep our sanity


Welcome to checklist, comment on this mortgage appraising world.

I included matched paired and the actual sales that I used with their closing prices in the report. $20k solar panel adjustment for a $80k system 1.6 mill home. 2 year old system. They had ev chargers 5000 sqft home...avg $100 month bill. Typical bill $500 month.

Seems to me they were target practicing and they need more practice......

Back in around 2022 when tesla and solar panels were the it things, I had a comp with tesla solar, tesla ev charger etc. Sold 70k above. Paying for the name. Atypical situation....fan boy comp. People love to show me the app lol.

 

[Dublin ohio]

I saw something in an appraisal report yesterday that I have never seen before and that was a $25,000 adjustment made to 3 comparable sales because the subject proeprty (which has a $310,000 contract price) has an electric vehicle charger. From the appraisal photos it looks like a level 2 charger and the cost for install such a level 2 charger should be no more than $1500 ($3500 if a home's electrical panel also needs to be upgraded). Of course there was no explanation in the appraisal report of how the appraiser derived the amount of the adjustment. There was also a fourth "comparable" included in the report that also had an EV charger, but that supposed comp was useless since it literally had 3x the GLA of the subject property and was in superior, gated community.

Level 2 at the most. Not going to have a level 3 in a residential neighborhood unless you want to drop megabucks and even then it is highly unlikely that 3 phase power is available. Curious as to how the 3 sales actually compared since they used that $25k adjustment

 

[NC Appraising]

Here is a good thread

https://www.reddit.com/r/electricvehicles/comments/rb3m6j/how_impractical_would_it_be_to_install_a_level_3

you could install a 25kW dc charger on single phase at most homes. The units run $10-13k (Delta, Bosch, and Chargepoint all make one).

That was 4 years ago pricing...so maybe 20-25kk now?

There was recently a ChargePoint quote posted in here and it’s not cheap. I know the ones that my local utility has installed in a place or two are north of $40k for the device https://smartchargeamerica.com/electric-car-chargers/commercial/chargepoint-express-250/

But aside from say 40k-60k in hardware the limiting factor will be power availability.

 

[timd354]

Here is a good thread

https://www.reddit.com/r/electricvehicles/comments/rb3m6j/how_impractical_would_it_be_to_install_a_level_3

you could install a 25kW dc charger on single phase at most homes. The units run $10-13k (Delta, Bosch, and Chargepoint all make one).

That was 4 years ago pricing...so maybe 20-25kk now?

There was recently a ChargePoint quote posted in here and it’s not cheap. I know the ones that my local utility has installed in a place or two are north of $40k for the device https://smartchargeamerica.com/electric-car-chargers/commercial/chargepoint-express-250/

But aside from say 40k-60k in hardware the limiting factor will be power availability.

This was not a 25kw charger, it was a Level 2 charger that you could easily purchase for less than $1,000 and pay an electrician $500 to install. In any case, installing a 25kW dc charger in a $310,000 townhouse would likely be an overimprovement that would not increase the value of the townhouse by anywhere near the cost (if at all).

 

[George Hatch]

That's a big adjustment for a $310k property.

What they should have done with S#4 was to compare it with it's direct comparables to isolate the effect on value in that market segment; not use it as a direct comp for a subject property that is otherwise completely non-comparable

 

[timd354]

I used a comp just becuse it had solar panels to avoid across the board adjustments and to support it marketability. Don't you love it when we use stupid sales just for bracketing or to include a sale with a similar feature?

I don't know how including a comparable sale that is really not comparable proves the marketability of solar panels on the subject property, but I get that appraisers sometimes do silly things to get past the checklist idiots who really know nothing aside from the checklist.

 

[Dublin ohio]

Here is a good thread

https://www.reddit.com/r/electricvehicles/comments/rb3m6j/how_impractical_would_it_be_to_install_a_level_3

you could install a 25kW dc charger on single phase at most homes. The units run $10-13k (Delta, Bosch, and Chargepoint all make one).

That was 4 years ago pricing...so maybe 20-25kk now?

There was recently a ChargePoint quote posted in here and it’s not cheap. I know the ones that my local utility has installed in a place or two are north of $40k for the device https://smartchargeamerica.com/electric-car-chargers/commercial/chargepoint-express-250/

But aside from say 40k-60k in hardware the limiting factor will be power availability.

25Kw would take about a 125 amp circuit at 240V. Probably take about $2-$3k to add that on to a typical house with a 200 amp service

 

[timd354]

That's a big adjustment for a $310k property.

What they should have done with S#4 was to compare it with it's direct comparables to isolate the effect on value in that market segment; not use it as a direct comp for a subject property that is otherwise completely non-comparable

Yes, it is a ridculous adjsutment on a $310k property....it implies that the EV charger accounts 8% of the total value of the proeprty which I simply do not beileve in the absence of strong support showing that is plauisible.

Comp 4 is literally 3 times the size of the subject property and sold for $580,000, which is obviously not close to being in the same market segment as a $310,000 purchase, so I am not sure that isolating the effect on value of an EV charger in the market segment which included the $580k home would be all that informative of the market segment that includes the $310k home.

 

[JTip]

Can't fill a diesel dually fuel tank with an EV charger.

$0 contributory value.