1 Story Vs 2 Story

[Charles Sciba]

I'm Doing An Appraisal On A Larger Than Typical 1 Story Home Located Within A High End Neighborhood Wherein Similar Sized Properties Are Generally 2 Story In Design.

I Have Only 1 Single Story Comp. To Go Further Outside The Neighborhood Or To Expand Search Parameters As Regards Time Could Skew The Final Value Conclusion.

What Would Be The Best " Supportable " Method To Extract An Appeal Adjustment ( If Any ) For A 2 Story Property Vs A 1 Story Home In Such A Situation?

 

[Lee Lansford]

I'm Doing An Appraisal On A Larger Than Typical 1 Story Home Located Within A High End Neighborhood Wherein Similar Sized Properties Are Generally 2 Story In Design.

I Have Only 1 Single Story Comp. To Go Further Outside The Neighborhood Or To Expand Search Parameters As Regards Time Could Skew The Final Value Conclusion.

What Would Be The Best " Supportable " Method To Extract An Appeal Adjustment ( If Any ) For A 2 Story Property Vs A 1 Story Home In Such A Situation?

Other than the single sale of a 1-story design house, if you go further back in time (perhaps a few years...as far back as necessary), are there any sales of 1-story houses that you can then compare to sales of 2-story design during the same time-frame?

Of course, there is no "one-size fits all" response to your situation, but you are headed in the right direction. In some neighborhoods, it matters not. Other neighborhoods recognize the difference in cost to construct (all other variables held equal) a 1-story vs. a 2-story.

 

[Blueprint]

What Would Be The Best " Supportable " Method To Extract An Appeal Adjustment ( If Any ) For A 2 Story Property Vs A 1 Story Home In Such A Situation?

"If Any". If you can not extract an adjustment with solid historical data from the subject's neighborhood, you should explain in good detail, but not adjust.

 

[Mike Kennedy]

"Go Further Outside The Neighborhood", adjust for location if/as indicated,

"Expand Search Parameters As Regards Time", adjust for market conditions if/as indicated.

Explain methodolgy in support of the above. Also recommend determining how many homes were built in that specific "high end" neighborhood (subdivision?) and the split between single and two story homes.

Also utilize Contracted & Active Listings that may also demonstrate whether Buyers demonstrate Single v Double Story Design plays a role in purchasing decisions. Include C&A analysis in further support of "The Final Value Conclusion".

 

[residentialguy]

Typically a 1 story with same GLA and equal quality/cond, etc will have superior demand. The costs are higher to to have a 3000 sq ft foundation 1 story vs a 1500 sq ft foundation with a 1500 sq ft 2nd level. Cheaper to go up than to go out. If it has a basement, it has 2x the basement size. There are less stairs...people prefer less stairs, esp older people. To not adjust, you better have real strong proof that for some odd reason, there is no preference ... like proof that the people in that community are from Mars.

 

[Lloyd Bonafide]

I'm Doing An Appraisal On A Larger Than Typical 1 Story Home Located Within A High End Neighborhood Wherein Similar Sized Properties Are Generally 2 Story In Design.

I Have Only 1 Single Story Comp.

What is the one comp telling you about 1 vs. 2 story, if anything? For a high-end area in the current market, I would prefer to go with recent sales in the same area, even if most sales are 2 stories. Sometimes it seems to make no difference. Maybe give more weight to the one-level sale?

 

[DMZwerg]

Typically a 1 story with same GLA and equal quality/cond, etc will have superior demand. The costs are higher to to have a 3000 sq ft foundation 1 story vs a 1500 sq ft foundation with a 1500 sq ft 2nd level.

With older homes and typical markets I would tend to agree, but when talking about higher end homes a 3000sf 2-story may well have a 2000sf basement and effectively have the "outer shell" and roof area of a 4000sf 2-story due to cathedral/vaulted ceilings, areas open to below, raised walkways connecting sections/wings, etc. The equivalent ranch homes will also be much less space conservative with higher, vaulted ceilings & such as well, so in some instances it may well be "a wash".

Another factor would be local market preference. Why are there so few ranches? Is another style preferred?

A third is basement treatment. If the basement is full walkout then the amount of finished basement area may add change the comparison to such where the houses are effectively the same gross living area when including below grade area and the market may treat it as such.

So normally it is best to compare ranch to ranch and 2-story to 2-story but in some markets there may be no difference whatsoever. Just make certain you examine all the pertinent details and determine if a significant difference exists on which to base an adjustment.

Good luck and happy hunting!

 

[LI-Appr]

Typically a 1 story with same GLA and equal quality/cond, etc will have superior demand. The costs are higher to to have a 3000 sq ft foundation 1 story vs a 1500 sq ft foundation with a 1500 sq ft 2nd level. Cheaper to go up than to go out. If it has a basement, it has 2x the basement size. There are less stairs...people prefer less stairs, esp older people. To not adjust, you better have real strong proof that for some odd reason, there is no preference ... like proof that the people in that community are from Mars.

Or there is demand because the baby boomers are getting older. Many markets in my area show no difference or preference for design. It is all GLA. Others especially high end areas show a preference. Big Colonials in some areas have status.

 

[residentialguy]

I agree that they can be similar....I had a little tongue in cheek with the Mars comment. Just remember, while the 2 story may soaring vaults, which would offset compared to a flat 1 level, however, an equal high end 1 story will probably have very high vaults as well. You also run into high vaults in the 1 story and flat in the 2 stories of equal GLA, which would set them apart further.

In a nut shell: there are always exceptions to rules...just take great care when making them.

 

[Metamorphic]

It sounds like a location adjustment is more sketchy than a time adjustment. If it were me I'd find the two most recent single story sales and use them. Saying in the report...."the two single story sales provide are the MOST recent in this neighborhood" is very powerful in its ability to forestall comments.

With regards to 1 v 2 adjustments, it seems like a 1st floor master levels the playing field, so look for 2 stories with that feature.

If you put together a grid with the two most recent 1 stories, a 1st floor master or two, it wont really matter what other comps you use or whether you have a 1 v 2 adjustment. You can reconcile around that gap........Or you can take the last 3 years worth of sales, index the prices and do a multiple regression analysis for the floor count. That would definitely be the shizzle.