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$25,000 Adjustment for EV Charger

eskayenterprises47 said:
Interesting reply.....and I agree on all counts. Question I have is.....how often do you actually adjust for solar panels? In some cases they're leased and some they are owned. I only make adjustments if they are owned outright.
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Alebrewer spained various nuances in a similar, recent thread...
 
timd354 said:
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.
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Well that person wont get hit with a racial discrimination lawsuit!
 
Dublin ohio said:
As is typical, the devil is in the details. Those details include: overall popularity of evs in an area, type of charger, the overall charging infrastructure in the area. Why would anybody pay $17k more for something that would cost no more than $4000 to install. There are dc fast chargers available for residential use from about $10K or more plus installation. The typical home has a 200A service. You would need a 400A service with a dc charger
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There would have to be other circumstances such as a shortage or a long installation time, and that would have to be pretty extreme for that much extra value.
 
timd354 said:
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.
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Essentially this is still an uncommon improvement in most markets. Aside from site location and lot size variables, by the time I match and or bracket every salient feature I have 6-9 comps in grid. Design style, overall quality and condition, Room, Bedroom, Baths, HVAC, basement use/access, fireplace(s), garage, swimming pools, hardscape features from patios, decks, fish ponds, outdoor kitchens, landscaping, solar panels are all noteworthy salient feature that most often if not always require adjustments. Then you have salient features that are noteworthy but are seldom worthy of adjustments like leased solar panel systems, above ground pools, hot tubs, back up generator electricity system, sky lights, in ground sprinkler system, fences, storage sheds, stoops ..... and EV charger systems. While arguably beneficial to some buyers most of that second group are non factors to the vast majority. To find an MLS listed sale noting an EV charger one could spend a full day searching hundreds of sales - that likely is a terrible "comp" near 3 miles away and 35 months old. I do not expand my search parameters to find a home with an EV charger or a shed or fish pond because my subject has one. I note whether L1, 2 or 3 and estimated cost new ($1,500 - $10,000) that adds little to no contributory value based on anticipated demand and is essentially irrelevant and immaterial in the valuation process, however times are changing. While an EV charger is mostly a super improvement now they will likely will be as common as a dishwasher soon and eventually a refrigerator. In the meanwhile a 8%, $25,000 adjustment to 3 sales in that report was asinine - but using a 3x larger GLA sale as a "comparable" because it allowed him to "bracket" a feature just screams appraiser is a certifiable moron.
 
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Appraiser has to look at comps to see if EV charger is worth $25,000.
I doubt it's worth $25,000 and if I was reviewer, I would want to see support for such an adjustment.
 
How does an EV charger, even a top model that might cost 3k and 1k to install, become worth 25k....
 
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