• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

How Do You Figure Out A Ball Park Figure

Status
Not open for further replies.

Chuck S

Freshman Member
Joined
Aug 24, 2017
Professional Status
Real Estate Agent or Broker
State
Kansas
I need some help
My friend had a 2 car garage built in the 90s on a home built in mid 50 s (detached)
Its a nice shed but my Seller thinks it is worth the 20K he stuck into it. I am not thinking it is worth more than 10 to 15K at the most, but I am not an appraiser, but a realtor.
I have contacted local builders with not alot of help, such as cost per square ft to build. And I know 27 years of depreciation comes into play too.

Anyone out there help me I am fronm El Dorado KS
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
Should be a rather straight forward calculation when analyzing home sale prices with similar aged det garages vs ones without. Your seller is obviously way off. I wouldn't expect it to be worth much additional. With a home of this age, there are many more important value related aspects to consider.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I tend to think newer ancillary items tend to assume the effective age of the dwelling.

Cost books like Nat'l Building Cost manual tends to depreciate garages (detached) at a higher rate than a home. In general I agree the item might be hard pressed not to depreciate some.
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
EddieB has your answer. Pull similar sales with and without that garage type...do some math...should result in a realistic value range to work with.

Some people refuse to grasp the cost does not equal value concept. His garage was likely worth a fraction of it's cost when it was still on paper.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Chuck said, Its a nice shed but my Seller thinks it is worth the 20K he stuck into it.

Why do you need to ball park it? If there are comparables with a similar garage, I'd think it would be a wash. The summation approach to value is seldom reliable.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Garage Addition Cost vs Potential Return on Investment From a Garage Addition
http://realtytimes.com/advicefromag...ge-addition-affect-real-estate-property-value

A. Run a 3 year closed sale search of the most competitive LOCAL homes with garage(s) and without. (i.e. 1 v 0, 2 v o) etc.

B. Engage a LOCAL Cert.Res. Appraiser with demonstrated LOCAL expertise to appraise the property and find out typical local Buyers current reaction to the improvements.

An improvement MAY yield less than, more than, or equal to Cost. If totally atypical > often times Zero$$. As with all elements in Residential RE, let the local market guide you.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Listing friends properties is 'rotten corn'. Let some other broker deal with it and you can listen to your friend gripe about the process over beers. Move on to the next listing.

The appraisal answer is pretty easy. Use the MLS to find comparable, similar neighborhood homes with and without garages. Cookie cutter apples to apples. You will figure it out.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
No solid answer BUT I am going to take off my appraiser hat and put my Broker hat on. First the 2 car garage is worth what a buyer will pay and buyers typically don't itemize things they just look at the property and decide if the like the house and if they should pay the price or make an offer. Don't get yourself in a corner debating with your friend because you are not going to change his mind and most likely just ruin your relationship. As far as appraisal methodology I first try to find some sales that are similar in age, size and condition and hopefully I can see a measurable difference in prices. There are some older areas I work where car-ports or 1 car garages are the norm and very little difference in price with minimal garage adjustments of $3,000 to $6,000 per-car space.

1- A ballpark guess $5K to $8K but in order to prove it I need to find some similar age and size homes with 2 car garages and then extract an-adjustment.

2- Cost new in my area $35 to $40 per Sq.Ft.plus inspection and permit fee's- Typical 2 car detached 400 to 450 Sq.Ft = $16,000 to 18,000 - Brings in about 1/3 to 1/2 cost new in resale.

3- I would try to come up with a number or price range you believe the home will sell for and forget the garage issue because the buyers will be the ultimate test of what the house will sell for and it really doesn't matter what your friend thinks the garage is worth because we don't make value we just try to arrive at a price that is most probable. If the house sells for a higher price your buddy will be convinced it was all about the stupid garage and you will be a hero- if the house won't bring a premium he either lowers the price or blames yo and gets another Realtor.
 

Chuck S

Freshman Member
Joined
Aug 24, 2017
Professional Status
Real Estate Agent or Broker
State
Kansas
No solid answer BUT I am going to take off my appraiser hat and put my Broker hat on. First the 2 car garage is worth what a buyer will pay and buyers typically don't itemize things they just look at the property and decide if the like the house and if they should pay the price or make an offer. Don't get yourself in a corner debating with your friend because you are not going to change his mind and most likely just ruin your relationship. As far as appraisal methodology I first try to find some sales that are similar in age, size and condition and hopefully I can see a measurable difference in prices. There are some older areas I work where car-ports or 1 car garages are the norm and very little difference in price with minimal garage adjustments of $3,000 to $6,000 per-car space.

1- A ballpark guess $5K to $8K but in order to prove it I need to find some similar age and size homes with 2 car garages and then extract an-adjustment.

2- Cost new in my area $35 to $40 per Sq.Ft.plus inspection and permit fee's- Typical 2 car detached 400 to 450 Sq.Ft = $16,000 to 18,000 - Brings in about 1/3 to 1/2 cost new in resale.

3- I would try to come up with a number or price range you believe the home will sell for and forget the garage issue because the buyers will be the ultimate test of what the house will sell for and it really doesn't matter what your friend thinks the garage is worth because we don't make value we just try to arrive at a price that is most probable. If the house sells for a higher price your buddy will be convinced it was all about the stupid garage and you will be a hero- if the house won't bring a premium he either lowers the price or blames yo and gets another Realtor.

I live in a small town and most of the homes are 85K with a single garage with the same square footage, there are no detached garages with the same year make as his
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
I live in a small town and most of the homes are 85K with a single garage with the same square footage, there are no detached garages with the same year make as his
(my bold) - It's going to be hard for him to "prove" his garage is worth 20k when the avg home w/ garage (per your above) is 85k ... Subject's garage may be an overimprovement
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks