Cost approach

[bankercrystal]

I am a banker in Lenawee County, Michigan. If I have an appraisal question, usually I can call a local appraiser and they are awesome about helping me. This time however, my client is in Royal Oak, MI. He wants to add on to his existing home.

How to I adjust for bedrooms, bathrooms, age, lot size etc.? I am not looking to have an appraisal done at this time, but, the market is so crazy right now, I want to have an good ballpark idea of what his home would be worth. Is there a website that could help with those values? It would put me a better position to help my client.

Thanks for your help, Crystal

 

[Mr Rex]

Zillow.

Hey Crystal, I don't want to make a deposit today, can you send me some interest on a size-able deposit I'm going to possibly make later?

 

[Michigander]

Crystal, cost does not necessarily equal value. He could spend 100K and only get 10K return on his investment. Typically you do this for the use of it, not to increase the value significantly. Since an addition is such an expensive proposition, why not hire an appraiser to give him an as completed value based on plans and specifications? Of course who knows where the market will be tomorrow....

This isn't something I would try to estimate yourself as a non-appraiser. Hire someone with a lot of experience and knowledge of that particular market. The $500 or $600 you spend (or he spends) will be well worth it if you get someone who knows what they are doing.

 

[MARKETVALUENOW]

I have to agree with Serena on this one.

Oh, imagine that, I am located in Royal Oak.

 

[redfish]

There are a significant amount of over improved homes in RO. Sounds like this guy is going to add to them.

 

[Old Man]

There is no website to determine the value with the additions. Your best source would be an appraiser and an appraisal.

There is a site, however, that can provide a general idea of cost vs value on improvements and/or remodeling that may be factored in to the additions being added, in the property's particular region. http://www.costvsvalue.com/index.html

Perhaps it may help.