• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Appraisers Value Of Remodel

Status
Not open for further replies.

Ashley Rohlf

Thread Starter
Freshman Member
Joined
Jul 16, 2018
Professional Status
Real Estate Agent or Broker
State
Minnesota
Hello! I am looking for opinions/advice as to a difficult to value home. The home is in a townhome community nestled between Single Family homes. Comparable town homes in the neighborhood within 1/2 mile are limited to four within the past 12 months and 0 isn’t he past 6 months with prices (one pending sale set to close in the next two weeks). Comparable homes were built in 1980s and have all original 1980 finishes where the subject property was completely remodeled (not updated, remodeled to make kitchen and master bathroom more functional) from 2016-2017. I know what the owner put into the property as far as the remodeling costs, but is there a way to quantify what an appraiser typically quantifies a remodel value over a comparable home? The home appraised as a C4 property when home owner purchased two years prior.
 

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
What I would do is find a 80's townhouse that has been remodeled without limiting the distance or the date of sale. Then compare that sale to other townhouses in it's subdivision that sold around the same time to determine what the premium is for the remodel.

Have a great day.
 

Sid Holderly

Senior Member
Gold Supporting Member
Joined
Jun 16, 2005
Professional Status
Certified Residential Appraiser
State
Indiana
Cost vs value reports produced yearly can be a help when paired sales are difficult. These reports are regional and give that consideration in forming your analysis.
Cost books can give an idea of the new difference by comparing the $/sf at different quality levels.

If no paired condo's look at the difference on single-family with the same/similar remodeling.
 

Ashley Rohlf

Thread Starter
Freshman Member
Joined
Jul 16, 2018
Professional Status
Real Estate Agent or Broker
State
Minnesota
What I would do is find a 80's townhouse that has been remodeled without limiting the distance or the date of sale. Then compare that sale to other townhouses in it's subdivision that sold around the same time to determine what the premium is for the remodel.

Have a great day.
Thank you!! That is where I am struggling- Over the past 3 years within the .5 mile radius everything has remained original 1980s. I think I may have found one that sold in May of last year that is about a half mile away. But I THINK I could run a comp on neighboring properties that sold within a year of that property to perhaps identify remodeling value for the area!
 

Ashley Rohlf

Thread Starter
Freshman Member
Joined
Jul 16, 2018
Professional Status
Real Estate Agent or Broker
State
Minnesota
Cost vs value reports produced yearly can be a help when paired sales are difficult. These reports are regional and give that consideration in forming your analysis.
Cost books can give an idea of the new difference by comparing the $/sf at different quality levels.

If no paired condo's look at the difference on single-family with the same/similar remodeling.
This is very helpful! Thank you!!!
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Start with 1/2 cost of "remodeling" and lower until the market agrees.
 

Ashley Rohlf

Thread Starter
Freshman Member
Joined
Jul 16, 2018
Professional Status
Real Estate Agent or Broker
State
Minnesota
Why not go out a couple miles?
House is on the border of the city. If I were to go out into the neighboring city should I exclude those cities from comps?
 

Ashley Rohlf

Thread Starter
Freshman Member
Joined
Jul 16, 2018
Professional Status
Real Estate Agent or Broker
State
Minnesota
Thank you!! That is where I am struggling- Over the past 3 years within the .5 mile radius everything has remained original 1980s. I think I may have found one that sold in May of last year that is about a half mile away. But I THINK I could run a comp on neighboring properties that sold within a year of that property to perhaps identify remodeling value for the area!
Joe, just wanted to ask you one more question! So I was able to find a town home that is .5 miles away that sold in April of this year. I ran a CMA on the property and based on the comps, my CMA came back at $170k but property sold for $212k ($14k over asking price). My question is, should I assume that the value of the remodel then would be approximately $44k? Or should I take $44k/Square Footage and use that in comparison to the subject property as the house I referenced that sold for $212k is 373 sq ft smaller than subject property.

Thanks in advance!
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks