Black couple settle lawsuit as home value at $500k below real price

[George Hatch]

Google updated photos for Pacheco St, but not Dutton Ct - the corner st. Click on Dutton Ct then rotate 90 degrees - and you will see previous picture. I found the date and it is from April 2019. So, as of the date of the Miller Appraisal, it looked like that Dutton Ct version - only the house had been cleaned and painted on the outside. And, may have had some interior remodeling. But it was still a 1000 sf home.

I dunno about that. There's a 10/21/2020 overhead in Google Earth Pro that shows the terracing in front as well as the balcony they added.

 

[shrubberyvaluation]

2173sf looks more consistent with what we'd expect.

IS the addition below grade in the rear?

 

[George Hatch]

The pic of the house in blue with the balcony is what the property looks like now. So the addition is below the main grade.

 

[Fernando]

I checked MLS and subject was not in MLS when it sold in 2016. Thus it may not be arms length. Subject goes to Sausalito school area. Do all Marin City residents go to Sausalito school area?

I checked sales in 2019 and there were two smaller size homes (1092 sf 5-3-1, 9130 sf lot, C4, woods view, no garage & 1216 sf 6-4-2.1, 16000 sf lot, C4, Bay view, 320sf garage, & studio basement) sold for $650,000 on 6/2019 and $899,000 on 8/2019, respectively.
There was a larger size 3,274 sf in area sold for $1,795,000 on 12/2018. It's C3, 15,594 sf lot, 506 garage, Bay view, 4 bedrm 3 bath.

I would put these 3 sales in my report being in same neighborhood and more additional comps of more similar characteristics to subject.

I have assessor record for subject as 2173 sf and 5 bedrm 3 bath home (public record updated 1/16/2023) 9,600 sf.
After seeing subject, I can adjust lot size depending on terrain and useability, curb appeal, location, views, quality of construction, garage, and location.
AI can't appraise this. A real appraiser is needed.

 

[Fernando]

Subject got a FHA loan amount of $540,038 on 4/2019 with lender: Primary Residential Mortgage, Inc.
Anyone familiar with this lender?

 

[RCA]

I dunno about that. There's a 10/21/2020 overhead in Google Earth Pro that shows the terracing in front as well as the balcony they added.

In any case, I think we all have to admit, that after this transformation - putting the new floor in, with the balcony, - and the poles now appearing more as columnar ornaments to the house - it has a heck of a lot more appeal.

And, by the way, I sometimes discount certain negative design characteristics in homes - because I see an easy way to remedy them. In this case, I don't think you could do much because you would certainly need to have approved plans to make allowances - and who knows what kind of problems may have come up. Like - how are they going to handle the plumbing for this lower level floor -- If there is plumbing in that lower floor, I bet they had to add drainage to the lower street.

- So, because of this nice transformation (after the fact), everyone walks away, ....

 

[Zoe]

The pic of the house in blue with the balcony is what the property looks like now. So the addition is below the main grade.

Is there anything in that subdivision or a nearby competing subdivision that would compete? How big is that subdivision development? We have the white vs black thing. We know that. We know Miller made comments in the report that should not have been made.

That is a huge upgrade on the subject of this appraisal in the lawsuit. I am doing one now where the father did a $350K upgrade in a very high income area. I haven't seen the subject yet. The son is buying from the father for about $400k and has been renting from the father. It will be in the million dollar range most likely. They are both airline pilots and both were in military. The son still serves in military. You know the buyer don't want tax assessor finding out the appraised value.

A 400K upgrade in that house in the subject subdivision? Is that an overimprovement? Property values shock me in CA.

I can see basement area having the same value per sf as the above grade area on that house. Not many basements in our area. The soil is not suitable for basements. Water leakage can be a problem if not done right.

Land must be like gold in many areas in CA.

 

[CGinMN]

When comparing this…

To something like this…


I can see how one appraiser might say that Tate’s house has inferior appeal, while another might say it is superior because of the expansion potential. And without recent data from Marin City, it’s hard to say.

 

[Zoe]

Up north, below grade area is common. It is common in steeply sloping site in TN. It just has to be done right by a builder that knows what they are doing. If you walk in basement in TN, and you can smell. you better note any smells. Recommend a professional inspection for any possible leakage on any basement you do .

 

[Fernando]

If I see a house like that, I would decline doing it because I don't know about construction.
Personally, I would not buy such a house. If one of those poles break, there would be considerable damage.
If the land is not bedrock, I would be worry of geological issues.
And when I go inside the house, I will make sure I don't see cracks or settlement/slanted floors.
Even my house has settlement cracks inside and it has solid foundation.