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House Built 1809, And Moved To My Neighborhood

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Carnivore

Elite Member
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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
OK, new problem. I donot have asssignment but some sap will get this.

A house one street from my home was finished in 1993 under a reconstruction project that took 3 years. Preparation for move from Salem, Mass to North Carolina took 5 years.

My neighborhood ranges in age from a low of new to a high of 18 years. Price range runs from 215k to 650,000k. This house is now listed for sale at $775,000.

Thoughts on how one would appraise this.
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
I did one like this, similar situation.....

House was taken apart, beam by beam from it's original site in Maine, and brough down to Connecticut - The original woodwork, wide plank hardwood flooring, fieldstone fireplaces were kept in place, with a lot of structural work done to shore up the dwelling, placed on a new foundation, with an all new electrical system, heating system, plumbing, etc.....

Where I am, there are a LOT of vintage homes which have been restored, and while not as extensive a job as the subject, made for decent comparables. When I prepared the report, I utilized 3 sales of vintage homes which were restored, and 2 of newer construction, and adjusted accordingly for the appear and condition for the newer homes.

My addendum explaining what had happened with the home was extensive, and I probably overexplained the condition/quality/work done to the home to the point that the underwriters who looked at it just pushed it though without even looking again. It seems that the more you write in your addendums, and the more attachments you supply with the appraisals these days, the easier it makes it to get the work through the underwriters without 50 phone calls and addendum requests.......If you are interested in seeing the report, I'd be happy to shoot a .PDF over to you.....just hit me with a PM with your E-Mail, and I'll sent it over
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Originally posted by MHMerriman@May 18 2003, 02:43 PM
Where I am, there are a LOT of vintage homes which have been restored, and while not as extensive a job as the subject, made for decent comparables. When I prepared the report, I utilized 3 sales of vintage homes which were restored, and 2 of newer construction, and adjusted accordingly for the appear and condition for the newer homes.

MH,

Thats going to be the problem on this one. This area dos not have any vintage, historical homes nearby.
My neighborhood is smack dab in the middle of the primest residential real estate in this county. Lots of new construction, good re-sale market.

Reason I am asking, is I am sure one of my buddies willl get this assgnment. I doubt anyone would buy it at this price. Now if the guy had moved the house to Dilworth in Charlotte he might have had a chance.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Andrew

seems to me that it won't be your typical appraisal (to say the least), and with housing range from New to 18 years, a problem is evident. You mentioned another town, Dilworth - does it have similar aged dwellings :question: and would it lend any input on how the market reacts to similar aged dwellings :question: and how would they play into this.

I'm in a different location than MH (I think), we have a lot of these "specialty moves" in my area, but we also have enough Vintage Dwellings to check market reaction. Some in the market seek "History" as a piece of the past that offers something of value which cannot be duplicated today. Euro's. hold onto history we here in this country for the most part knock it down and put up new, so history items, sometimes Sell for similar or more. Don't be surprised on the sale price, they can get quirky and it makes the appraiser nuts.

Good Luck

:ph34r:
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
I live in the southern part of the litchfield hills of CT, but do a LOT of work in litchfield county. Right now, there are a TON of people with too much money who have been buying second and vacation homes in the area up here, and as such, properties with the "right" amenities have been selling for mega-bucks lately. There are some areas here where the participants in the marketplace don't just shop in one town, they will spread their search across 3-4 towns, to be in the right area of the town. Certain roads have more prestige than others, which is REALLY interesting to try to explain to an underwriter.

For example, when doing a high end appraisal in the Washington area, I almost automatically expand my search to the towns of Roxbury and Bridgewater, simply because this is what the people who are shopping for homes will do. When in Sharon, I can look in Salisbury and Kent, possibly even Cornwall. As I said before, this can be interesting with some underwriters, since most can't understand why the little 1,200 sf. colonial down the road on a postage stamp lot can't be used as a comp for the 6,500 sf Vintage colonial on 22 acres, with distant views, and just be adjusted accordingly. Luckily, MOST of the realtors in the area have been dealing with certain lenders for years up here, and their underwriters are better than most, though I always cringe when I get a request from a no-name lender to do an appraisal up here.

As far as your issue Andrew, sounds like it'll be a terrible assignment no matter what. Whomever does it will have to expand their research to a couple surrounding communities at the least, and hopefully they have the ability to explain it on paper, which as we all know can be a lot harder than it sounds. The other issue than seems to be raised (missed it on your first post) is that they are gonna think it's a white elephant, since you said it's listed for $775K and the high end of whats in town is going for $600K+......thats a HUGE jump to get an investor to buy. I'm guessing the property is totally overpriced, the people over-improved for the area and are trying to get out from under the debt load of the property, and will end up taking a bath on it, because it'll never sell for what they are asking from what you are saying.
 
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