Giving value to hot tubs

[Couch Potato]

Gotta agree with the consensus here. A hot tub is personal property. They're essentially really small, heated, above-ground pools.

To me, their integration into a deck does not affect their personal property status.

It may not make a difference to you, but legally it makes all the difference in the world.

 

[Michael Tipton]

As others have stated, market reaction will determine any improvement's adjustment. Free standing spas typically will be treated as personal property. An exception might apply depending on the location and whether the spa is attached to the subject (ie-enclosed porch with the spa attached to the interior structure).

The size of the adjustment will vary by market be it negative, neutral or positive.

 

[EvalueMator]

Here in central coast CA we look for "hard wired" jacuzzi/spas. If there is a physical water and electric line dedicated to the amenity, then it may not be personal property and adequately adjusted for.

 

[Michigan CG]

.............. then it may not be personal property and adequately adjusted for.

And what is that adjustment? $500, $1,000, $2,000?

Where are you going to find that adjustment?

 

[Doug DeMars]

Here in central coast CA we look for "hard wired" jacuzzi/spas. If there is a physical water and electric line dedicated to the amenity, then it may not be personal property and adequately adjusted for.

To be fair and balanced on the topic...a "built-in" hot-tub may be regarded as "real-estate" and less so as personal property if it can be regarded as a permanent fixture and less so as a "readily movable" object.

However, IMO, making a line-item adjustment for such an item would be very problematic and opens the door to other gray "micro-appraisal" issues. How about that "attached" $5K chandelier? How about that "semi-permanent" outdoor kitchen BBQ island? Any comments about a large "built-in" AV system for that home theatre? What about custom "plantation shutters" that are not likely to be moved...are they that much different than "curtains" that are rarely (if never) regarded as real estate but are not liekly to be moved? Etc...

I personally would not make a specific adjustment for these items even if they could be proven to be part of the real estate. Rather, these items are best considered in the overall picture when finally reaching reconciliationland.

 

[Couch Potato]

To be fair and balanced on the topic...a "built-in" hot-tub may be regarded as "real-estate" and less so as personal property if it can be regarded as a permanent fixture and less so as a "readily movable" object.

However, IMO, making a line-item adjustment for such an item would be very problematic and opens the door to other gray "micro-appraisal" issues. How about that "attached" $5K chandelier? How about that "semi-permanent" outdoor kitchen BBQ island? Any comments about a large "built-in" AV system for that home theatre? What about custom "plantation shutters" that are not likely to be moved...are they that much different than "curtains" that are rarely (if never) regarded as real estate but are not liekly to be moved? Etc...

I personally would not make a specific adjustment for these items even if they could be proven to be part of the real estate. Rather, these items are best considered in the overall picture when finally reaching reconciliationland.

Bingo! Whether real estate, or personal property a hot-tub might not add any significant value.

As for that $5K chandelier, it may, or may not need a line item adjustment. For most houses with $5k chandeliers, $5k is insignificant. In low-end houses a $5k chandelier is typically an over-improvement.

 

[PropertyEconomics]

And what is that adjustment? $500, $1,000, $2,000?

Where are you going to find that adjustment?

Your first question cannot be answered without doing the analysis.

As to your second analysis the same place you find other adjustments within the market grid .. you are going to go into the market and do the analysis. Sheesh ... even CGs have to be led by the hand sometimes ... I swear. :blush:

 

[Mike Garrett RAA]

Lets see...hmmm, not a searchable feature on my MLS. Ok, now what? The subject does not have a hot tub, spa, built-in or otherwise. One of the comps did. Ahhh, ok...let me do a grid and see if I can determine an adjustment by paired sales analysis.

Holy crap, Batman...

I did it 25 times. Took me 3 days and guess what? Can't seem to prove a buyer paid anymore for the comparable with a hot tub than one without a hot tub. Can that really be true? Doesn't a buyer just salivate when thinking of all that fun they will have in that hot tub...especially if the wife looks like bubbles?

But, but...Mr Mike, The property owner spend $5,000 for the hot tub, installation, and all the wiring and plumbing. Isn't it worth something? Ahhh...yep, and I call that "value in use".

Would a lender get all bent out of shape if I made a $2,000 negative adjustment to a comp that had a nice built-in hot tub? I doubt it. Would the state give me grief if I didn't have paired sales analysis in my work file to prove the adjustment? Yep...at least in my state.

So, what is the solution? You be the judge of that. As for me and my shop...I think I just might not make an adjustment I couldn't prove.

 

[Michigan CG]

Your first question cannot be answered without doing the analysis.

As to your second analysis the same place you find other adjustments within the market grid .. you are going to go into the market and do the analysis. Sheesh ... even CGs have to be led by the hand sometimes ... I swear. :blush:

20,000 comedians out of work and PE is trying to be funny.

 

[WMOORES]

20,000 comedians out of work and PE is trying to be funny.

With what has happened to our industry in the past 18 months, you have to have a sense of humor!