Do You Adjust Condition When Dirty?

[Mike Garrett RAA]

What do we appraise to? I think it is called "Market Value". So, the issue is "marketability". You cannot tell me a dirty (regardless of the level thereof) house will sell as quickly or at the same value as a "clean" house.

Yes, dirty affects value. Just ask any buyer. They usually think in terms of thousands of dollars to fix the place up. IN MY MARKET, at median price, it is usually a $2,000 to $5,000 adjustment. Same holds true for landscaping. Nicely landscaped homes bring more money. No or poor landscaping....$3,000 to $5,000 adjustment.

Was in a builder's sales office yesterday. Looking for some comps on a VA appraisal. The sales rep was talking to a family relocating to this area. When asked about landscaping she told them......"No landscaping included in the base price, it is an option. Front only $7,000, full including sprinkler system and three trees....$15,000 to $18,000. Of course this can be included in your loan.". This is an upgrade neighborhood with median prices in the mid $360,000.

Wow, what a bargain! :rofl:

 

[Terrel L. Shields]

my fondest memory was tomato plants growing in the sink from garbage left there and soiled diapers filled the bathtub

 

[Patti Jury]

The funniest thing I hear when appraising...

Walking into a home that you just know these people have been spending every waking hour cleaning prior to my arrival. Then hearing..."excuse the mess." :rainfro: :rainfro:

Or even the "lived in" home look....

I always just say If I have to base your home on cleanliness.. I am in the wrong business...You should see my House! :rainfro: :rainfro:

 

[Bill Baughn]

Originally posted by Richard Carlsen@Jul 13 2005, 04:27 AM
we cannot base an adjustment for value based on what might happen with a buyer and two houses.

Richard,

Isn't that what paired sale analysis is suppose to be all about in therory?


Bill Baughn

 

[Bill Baughn]

Originally posted by Mike Garrett, RAA@Jul 13 2005, 08:39 AM
Nicely landscaped homes bring more money. No or poor landscaping....$3,000 to $5,000 adjustment.

Mike,

Speaking of making landscaping adjustments I have two quick stories.

Once I had a homeowner get mad at me cause I didn't give any value to his Bonsi tree he had in his front yard. It stood maybe 2' tall and he told me it was worth over $5,000. I thought to myself, how does this guy sleep at night?

The second one involved my ex's cousin who had thousand of dollars in prize winning rose bushes in her yard. However when she sold the house the new owner wasn't into rose bushes and promptly graded them over.

So one must be careful as to what one gives value to. Beauty is in the eyes of the beholder...So is value...


Bill Baughn

 

[Tim The Enchanter]

A little cleanable dirt is one thing.
Filthy McNasty is another. :lol:

 

[jeff samolinski]

I am with Lee Ann and Pam on this one-It does make a difference although one would not likely make a specific adjustment for dirt/condition, it sure would be in my mind during the infamous reconciliation process.

 

[Harve Bean]

When you wipe your feet after you leave a house, you know it is DIRTY!

 

[Lobo Fan]

My favorite filth story was a giant contraption (half MH half stick built that had debris pile up waist high through out the home. I had to try and move some of it top get into some rooms and when I did, rats the size of chihuahuas came running out. I am glad I was wearing jeans and my tall lace up work boots!

It is hard to not give an immaculate house a higher value than a pig hole. It goes to a maintenance issue as well. A meticulous HO will not let a leaky roof get to the point that water is coming indoors, or let a HWH deteriorate to the point of flooding.

I put in a cost to cure of something like $8,000.00. I figured three-four 40 yard dumpsters and four-five guys 40 hours each to haul it all out.

As far as landscaping goes, my mentor got into it with a HO over the homeonwer's claim that he spent over $50K on landscaping. MY mentor gave him an adjustment of $1500.00. The mentor stuck to his guns claiming that landscaping in Albuquerque is not that big of a deal. If you don't water for a week it is all dead anyway, and you are back to square one. It was one of the few times he did not make value. As a result, I rarely give large landscaping adjustments unless there are non-living improvements like ponds, water features, decks, gazebos, swimming pools. etc.

 

[Farm Gal]

Chuck:

I gotta DIS agree with you to a limited extent on the landscaping... It is the other side of the coin from 'really filthy housekeeping'... You HAVE to go to the market for results based data, even if it means a LOT of phone calls and keeping a record of sales which fit your theory . At some point it is a marketability and appeal issue.

How much reaction DO buyers make in purchase decisions based on the appearance/function of that individual property's visual and physical appeal versus the comps? I can tell you based on MY research, cosmetics and landscaping really DO matter, more in some market segments than in others... Figuring out how much is a headache .

While we are totally in agreement that the cost is NOT equal to value...for gold plated faucets and really superadequate landscaping... I'd be real careful to give the matter some consideration before saying it isn't worth much of anything... I dunno the value of the house in question where the (idiot ~my opinion) dropped 50K on his yard... but $1,500 might well be inadequate as an adjustment. Staying calm in the face of a spittingly furious homeowner is another matter entirely. Suggesting that one has expereince and research data to back ones opinion, and that one is quite willing to look at any contray data the homeowner might provide is the easy way out. Pointing out that hobbys are expenseive and that the IRS discounts them as deductible business/investment expenses for a reason might buy you a little less spit in your face :blink: while the HO thinks on it. :twisted:

Sure, if you don't maintain landscaping, the value can rapidly turn to zippo or negative... but the same can be said of a marginal roof! Unmaintained landscaping rapidly loses value but generally is not as destrutive to overall value as that potential roof leak!

Flip side, is the "paint n carpet" remodels! Where a little HUD quality carpet, and a fast (no longer dirty) coat of paint, and some $30 bucks worth of unironed straight-out-of-the-package "Kmart closeout-sale curtains" : value can hugely HUGELY exceed the cost.

The curtains (beleive it or not) have a HUGE ROI factor