Earth/Berm Home

[bradelyd]

Need some help. I have been asked to appraise an earth home or berm home. I have spoken to the lender and explained to him that there are no berm homes sales in the past several years in the area. He wants me to still do the report. My question is, how do I come up with comparables? DO I just look at age and square footage and sick with 1 level homes? How do I adjust for market reaction to berm homes if there is nothing to compare it with. Three sides are in the ground. I just want to provide the best appraisal possible and still be within USPAP.

Thanks
Brad

 

[Thomas Fiehler]

If there are none similar I would list the last sale of such a property and provide other "unique" style houses. Domed houses; A-frames; log houses, etc.

 

[residentialguy]

Other things you can do is look at canceled and expired listings....talk to the realtors about how the market reacts with them compared to the other unusual homes and even typical 1 level homes. Don't be afraid to use the older comps and adjust for time, or even just to see market reaction compared to others. Also, go out of the area into other similar markets.

Bear in mind, a berm home technically has no GLA, but the market may see it as GLA.


Or you could pull a SANDY MANEUVER and just say since there are no similar sales, therefore it has no value... and save yourself all that work.