Earth Sheltered Home: Appraisal And Comparable Problems

[gregb]

 

[George Hatch]

I want to thank everyone for their responses. They have all been very helpful in educating me in some small measure on how the appraisal profession operates. At this point I do not think I have anything to lose by going to hearing (it is apparently unheard of here for the Board to increase a valuation). I am sure it will be an interesting exercise, as well as educational.

Will post results next week, regardless of what they are, with my impressions of the process.

Thanks again.

If you can take some notes about which arguments the Assessor is using that would be very informative for us.

 

[Mr Rex]

Don't be pissed when they use caves as comps. It is what it is and you made a decision to build a cave like dwelling in the side of a hill and now want other tax payers to subsidize your decision to build a home that doesn't have wide spread market support but want some sort of concession from the taxing authorities. Sad to say, but if you don't save enough in energy savings etc to justify your choice in life below grade then its not the markets problem or the local taxing authority's responsibility to cover your lack of insight or foresight. If you feel you made no mistakes in your choice of design etc. why would you be pleading for treatment different than any body else? Made your bed, now lie in it. As noted, your cost of construction may be higher that typical 2 x 4 construction. There is no reason that the taxing authority can not take this into consideration and tax you accordingly.

 

[Carlos Danger]

There is always the possibility they measured wrong. Its worth it to check the boards figure with that of your builder. If they have you smaller, well maybe don't bring it up.

 

[Marant]

Don't be pissed when they use caves as comps. It is what it is and you made a decision to build a cave like dwelling in the side of a hill and now want other tax payers to subsidize your decision to build a home that doesn't have wide spread market support but want some sort of concession from the taxing authorities. Sad to say, but if you don't save enough in energy savings etc to justify your choice in life below grade then its not the markets problem or the local taxing authority's responsibility to cover your lack of insight or foresight. If you feel you made no mistakes in your choice of design etc. why would you be pleading for treatment different than any body else? Made your bed, now lie in it. As noted, your cost of construction may be higher that typical 2 x 4 construction. There is no reason that the taxing authority can not take this into consideration and tax you accordingly.

My, my, such hostility....

We are not pissed, just trying to use the tools the system gives us, much the same as a defense attorney in a criminal case. I doubt you would want your attorney to not do his/her best just because they do not agree with you.

Your comments directly support my position. Without ever seeing the house you label it a cave, when in fact it has available natural light in every room and is much brighter than any of our neighbors. The problem is not with the house or its design, it is with the perception of the average buyer when they hear the term 'earth sheltered'. Believe me, we have heard all the comments: cave, dank, dark, claustrophobic, hobbit house, etc. But when people actually tour the house, as many have, they are amazed at how light it is and how much sense it makes. We have never had any negative comments after such a tour. But it is human nature to be suspicious of that which they do not know or understand.

The perception by the general public is what sets market value, and if that perception is negative, justified or not, it will have a negative effect on the value. I believe this exactly what the appraisal principal of obsolescence is intended to address. I do not believe there is anywhere in the appraiser code that has room for fault, ignorance, genius or any other such concepts. A proper appraisal should be based upon comps, not emotion. If there are no comps the code gives tools to address the issue. Those are the tools we will use. Hopefully, at some point the average buyer will be more aware and ignorance or misguided prejudice will not affect value.

If you allow your personal philosophy to impact your appraisals maybe you should be sure to notify your prospective clients so they can be properly prepared for the result.

 

[George Hatch]

I'm sitting here looking at the overheads for the property dating back to 1995 before they even cleared any of the trees off the site. The built-in garage comprises most or all of the east side of the structure and the hillside and street frontage comprise the north side of the structure, so most of the windows will be on south side of the home except for the one wall that's maybe 40ft long that faces west . So that is a little unusual, and so is the contemporary design of the exposed elevations. If a designer would have incorporated skylights into this design they would have done that for a reason. I think that the impact of those differences would vary by local market preferences. In Seattle or San Jose or Palm Springs even the hipster areas in Austin they might be a plus, but in vast areas of small town and rural America where the more traditional designs are favored then maybe not so much.

If the design appeals to you then that's the main thing that should matter to you. Unlike most other property types, residences also serve significant emotional needs, not just physical or economic utility.

 

[Artemis Fowl]

I thought the movies captured the "Hobbit Hole" look perfectly, as described. Beautiful and I would love to live in one. My comment was in no way derogatory.

I always encourage petitioning to review boards. People tend to get out of it what they put into it. Those who perform due diligence and/or actually talkto/work with their assessor have a greater chance of success and at worst, walk away understanding why their value is what it is. Those who bring significant bias or put no effort into it tend to walk away complaining about how unfair it all is. This, of course, assumes a relatively competent and unbiased assessing organization.

 

[Marant]

I'm sitting here looking at the overheads for the property dating back to 1995 before they even cleared any of the trees off the site. The built-in garage comprises most or all of the east side of the structure and the hillside and street frontage comprise the north side of the structure, so most of the windows will be on south side of the home except for the one wall that's maybe 40ft long that faces west . So that is a little unusual, and so is the contemporary design of the exposed elevations. If a designer would have incorporated skylights into this design they would have done that for a reason. I think that the impact of those differences would vary by local market preferences. In Seattle or San Jose or Palm Springs even the hipster areas in Austin they might be a plus, but in vast areas of small town and rural America where the more traditional designs are favored then maybe not so much.

If the design appeals to you then that's the main thing that should matter to you. Unlike most other property types, residences also serve significant emotional needs, not just physical or economic utility.

//////

Actually, when we finally decide to sell we will market the property in exactly those areas. There are a lot of tech transfers from Silicon Valley to Austin, and we are only about 20 miles away. Part of the planning. We like the house a lot, and planned it to be able to age in place....about 80% ADA.

There are two Solatubes in the roof to light interior areas, one of which is about 3'. Sometimes in full sun it is too bright! The living room has 3 5x6 picture windows that give a great view of deer, hawks, etc. They let in so much light (and heat) in the summer that we have both interior and exterior shading.

It is definitely not the stereotypical Texas house!

My blog gives a pretty good idea of what the 'cave' actually looks like.

 

[Marant]

I thought the movies captured the "Hobbit Hole" look perfectly, as described. Beautiful and I would love to live in one. My comment was in no way derogatory.

I always encourage petitioning to review boards. People tend to get out of it what they put into it. Those who perform due diligence and/or actually talkto/work with their assessor have a greater chance of success and at worst, walk away understanding why their value is what it is. Those who bring significant bias or put no effort into it tend to walk away complaining about how unfair it all is. This, of course, assumes a relatively competent and unbiased assessing organization.

In giving the comments people make I was just trying to demonstrate peoples bias. Actually, we find it rather amusing. Certainly no offense taken.
I have discussed the appraisal with the appraiser, and have sat in on several hours of hearings. I believe that the procedure and appraisal office in my county is excellent, and am sure I will receive fair consideration. No-one can ask for more.

 

[George Hatch]

I wouldn't call it a cave, but I would have done the floorplan differently. Different strokes.

With respect to marketability I would be curious how marketable a 2bd/2ba home of ~2200sf is in that area, though. That's not common, either.