brick vs. vinyl

[Deb Hart]

I had an appraisal done for a refi. The house that was used as a comp only has a partial brick front... the rest is vinyl. My house is all brick. No compensation was given for this. Should the appraiser not have added money to the brick/vinyl house to make up for the cost difference between brick and vinyl? If so, what is the standard for coming up with the cost difference?


thanks,
Deb

 

[Mike Kennedy]

Welcome to AF. Cost has no bearing on contributory resale value, you may get less, more, or akin to cost depending on whether the local market (i.e. actual buyers of the most similar LOCAL properties) indicates current demand for any improvement be it siding or other elements. In some neighborhoods, all vinyl outsells all brick. In others all brick/masonry either facade or full brick outsells all other siding. In others, no premium is indicated for siding variance. To determine what YOUR market indicates - an Appraisal should demonstrate buyer preference and premium (if any) via the comparable properties utilized to demonstrate the most competitive local values as of a particular point in time - the Effective Date of Appraisal. As buyer demands change contributory values of all site improvements change.

 

[Metamorphic]

No. the appraiser should not have added money to make up for the cost difference between brick and vinyl. In the sales comparison method the appraisers job is to adjust for difference that the marketplace pays for differences between brick and vinyl.

Think of it like this. If you had your house painted using that iridescent glittery automotive paint that the kids with too much money and too little class put on their cars, it would "cost" a fortune, but you'd be very unlikely to find a buyer that was willing to pay that much extra for the house because of how it was painted.

It may be that in your market the typical buyer is willing to pay a little bit extra for a brick front, but that all brick is more than the typical buyer can pay or is willing to pay. It might also be that all brick is superior and that buyers in the market do value it and are willing to pay more for it. But you dont know that till you analyze the differences in prices paid for all brick vs half brick. The fact that all brick costs more is irrelevent.

A good appraiser will analyze the market and figure out what value difference, if any, exists there. Its a fair question to ask, but don't be surprised if the answer is "zero".

You might also look at the "Condition" line of the appraisal. Many times things like you're talking about will be bundled there into an overall adjustment. For instance.....Lets say, you're all brick, and this comp is brick and vinyl, but maybe this comp has a recently remodeled kitchen with granite, stainless, etc vs your older kitchen, or it has full wood and slate floors vs your carpet, laminate, and linoleum. In a case like that the comps inferior exterior treatment might be canceled out by some superior quality treatment somewhere else, which would make for "no adjustment" in the comparables grid.

 

[Walter Kirk]

Cost does not equal value. I know that buyers think that just because they paid extra for a brick veneer or two extra blocks in the foundation wall or a "premium" lot with a view of the drainage ditch that other buyers will pay extra on resale. That just isn't so. The appraiser must consider market reaction to features such as these, apparently the appraiser in this case has found that buyers are not willing to pay more for extra brick in this case.

 

[timd354]

I had an appraisal done for a refi. The house that was used as a comp only has a partial brick front... the rest is vinyl. My house is all brick. No compensation was given for this. Should the appraiser not have added money to the brick/vinyl house to make up for the cost difference between brick and vinyl? If so, what is the standard for coming up with the cost difference?


thanks,
Deb

Deb,

There is simply no way for an appraiser who is not familiar with your particular market to give you an intelligent answer. I find in that in some markets I appraise that there is no difference in value whatsoever between an all brick house and a house which only has a brick front. In other markets, there is a relatively substantial difference in value. The only way to get an accurate answer to your question is to find a local appraiser who is familiar with your area. Just one thing to keep in mind is that a higher cost to build something does not always translate into a higher value.

 

[Thomas Fiehler]

Deb-Welcome to our forum. I'm sorry to say, but that is really a local question. Around here, a brick house will normally sell for more than a vinyl house. The market says around 3%-5%. The adjsutment is based on market reaction and not on costs. You might try contacting the lender and having them ask the appraiser to reconsider.

 

[Howard Klahr]

I am not able to answer your question directly, since I am not familiar with your specific market area. However, in general terms, while cost is a consideration in performing an appraisal, cost does not equate to value. Therefore, the adjustment you are interested in is obtained by analyzing sales of similar homes which have vinyl siding as compared to those that are all brick. In the event a differential in price can be attributed to vinyl siding versus brick then an adjustment is warranted and should be applied.

I hope this is helpful. Please feel free to follow up if you still have questions.

 

[Bearslide]

Welcome to forum! As others have pointed out, cost has no bearing on contributory resale value, and the answer will depend on your local market. As someone else pointed out, interior features of other sales may offset your full brick veneer. The only way to determine if there is a premium in your market would be to compare model match sales with the only real difference being all brick versus part brick.