Indoor Pool Value

[Ken B]

Related Question - since you all are on the topic - Why do appraisers look at what the assessor has versus what they see? I don't know what my assessor has (I know what the taxable value is, but I don't know the what the drawing looks like), but I am guessing that they don't have the correct drawing b/c I think the previous owners did an addition without any permits. But any, back to the main point, why ask for a drawing of something you just measured?

Exactly. The ones making that suggestion were being facetious.

Although some clients require the action, there is no absolute requirement to physically measure a property. After all, how can one physically measure a property when the owner refuses access to the property? When it is not possible to obtain primary data, secondary has to suffice. And sometimes the only secondary data that is available is the assessment record. However, when the subject is a single-family residence and an on-site inspection is performed, it is generally expected that the appraiser make a physical measurement of the property and to use those measurements to calculate building areas.

 

[Michigan CG]

.......But any, back to the main point, why ask for a drawing of something you just measured?

We are discussing pulling assessor records for the comparable properties to VERIFY assessment records GLA vs. the Realtor's GLA to see if they match or are close.

Many times Realtors like to throw in finished basement areas for GLA. Good appraisers verify the GLA with more than one source.

 

[AnonApprsr]

If I find a discrepancy between MLS and any other source (even the assessor) i goto the assessor's sketch to see how the GLA was calculated and if I would have done it the same way.

 

[residentialguy]

We are discussing pulling assessor records for the comparable properties to VERIFY assessment records GLA vs. the Realtor's GLA to see if they match or are close.

Many times Realtors like to throw in finished basement areas for GLA. Good appraisers verify the GLA with more than one source.

Assessor finished sq ft, both GLA and Lower is available on-line and I do verify. Unfinished is not. The assessor can't even go inside without homeowner's permission and many who finish that area won't let them in because they'll raise their taxes. I worked for the county assessor...very unreliable. Agents are much more reliable, sad to say.

 

[Russ Kitzberger]

There are several generally accepted methods of determining the value of a item:
Sales Comparison
Depreciated Cost
Income Capitalization
Market Participant Interviews

Each of these methods has multiple levels of analysis that can be performed depending on the depth necessary to support the findings based on the intended use of the appraisers opinions.

This means if it is a really important assignment you get into the detailed analysis so you can support the opinions.

It appears the appraiser has told you what their opinion of the value of that item is. You will need to determine how they arrived at that value for that item and if that methodology was appropriate for the intended use of the appraisal.

Based on what you are telling us, the lender has told you that they believe that the methodology used to arrive at the opinion of that items value was appropriate for their use in making a loan. They have their answer and they are satisfied. You can choose whether to do business with that lender now or move on to another one.

On a final note, find the fee paid to the appraiser for their opinions and reporting. Do you believe the appraiser could have taken the time required to determine the value of that item and the rest of the appraisal based on a fair rate for such a complex assignment? That may answer your question on whether they were asked to perform a quick analysis or a detailed complex one.


Russell Kitzberger, RAA
Pointer Appraisal Services LLC

 

[bgillett]

On a final note, find the fee paid to the appraiser for their opinions and reporting. Do you believe the appraiser could have taken the time required to determine the value of that item and the rest of the appraisal based on a fair rate for such a complex assignment? That may answer your question on whether they were asked to perform a quick analysis or a detailed complex one.


Russell Kitzberger, RAA
Pointer Appraisal Services LLC

I haven't been given an option to pay more based on the complexity of my property. Is there a way for me to pay more for better service so to speak?

 

[Russ Kitzberger]

I haven't been given an option to pay more based on the complexity of my property. Is there a way for me to pay more for better service so to speak?

That is a very good question. There are two issues there. The first is if your lender is willing to either ask the appraiser to complete a new assignment with a more detailed scope of work and analysis, or if they are willing to engage with a different appraiser for a more detailed scope of work. The second issue is if the additional scope of work will yield different results.

It is up to the client on what they engage for. Unfortunetely, in lending that leaves the borrower outside of that decision. If you engaged directly for your own appraisal you and the appraiser could have a complete discussion on how detailed the analysis should be.

I will add though that very often in both lending and non-lending cost of appraisals is the main focus of decision making. The only exception is litigation, in that instance, cost is many times a much smaller portion of the decision.

Russell Kitzberger, RAA

 

[residentialguy]

Well, after an exhaustive research, I concluded that the market value on the indoor pools have an average contributory value of $50,000-$75,000 to homes that fall in the $1+ million dollar range. This adjustment breaks down to about 50% of what GLA sq ft was going for and about 50% of cost. This area was not included in GLA but was a separate line adjustment.

Countless real estate agents that have experience with these, as well as buyers of these properties were interviewed. It seems to add that "wow" factor that puts them over the top of homes without in-ground pools. Some of the buyers would not have purchased the home without it, but it does make it a more selective and smaller buyer pool (no pun intended). As with anything, pools have variances from one to another. This had it's own separate HVAC system with no chlorine, a sauna, 1/2 bath and all marine quality paint & materials used.

Buyers in this price bracket don't worry about the added cost of maintenance. Maintenance is much lower then outdoor pools.

In the case of OP (bgillet), obviously this would not be the same adjustment. Big difference in market reaction from a 125-150k buyer to a $1 million dollar buyer. As DMZ noted, having a pool may very well be a negative. This is especially true in lower income housing, which tends to go hand in hand with lower income families. Not saying that it is the case...just saying it may. Do a simple test. Ask your spouse if they would pay more for it and be willing to take care of it. I work over 60 hrs a week and wouldn't have time or money to take care of it, much less use it. Would many of you?

 

[residentialguy]

Clarification. 50% of my GLA sq ft adjustment