Losing our house to a light rail project - any advice on boosting value?

[Rickyticky]

Hello,

As the title states, it is looking like we are most likely going to be directly in the path of a new Seattle light rail project and loose our house within the next few years. I'm not really sure of the exact timeline right now. The final light rail path will be decided at the end of 2023 and the project completion date is sometime in 2032. I am just now starting to research the process but it sounds like the house will be appraised prior to negotiating a buy-out price from Sound Transit. Based on the timeline, we are expecting to be in the house for a few more years. We are still planning some updates around the house but obviously don't want to throw money away. I am a general contractor and do 80-90% of the work so the updates are relatively inexpensive for Seattle standards. Here's a breakdown of the house and some of the things we are hoping to do.

-It's a small 1920's bungalow - 1000sqft on the main level and ~300-400 sqft of unfinished basement. The entire house has been remodeled with new flooring, electrical, plumbing, insulation, furnace, tankless water heater, and windows. We recently reconfigured the main floor from 2 bedrooms, 1 bath to 1 primary bedroom, 1-1/2 baths and plan to add at least one bedroom in the basement. Ideally add one bedroom and 1 full bathroom to the basement.
-There is a also a small semi-detached laundry room out back (8'x8'). We would like to move the laundry to the basement. Would it be beneficial to add a closet to the laundry room to make it a "bedroom"? The room would be used as a home office if we move the laundry downstairs.
-The house has a decent view of downtown Seattle and Elliot Bay. I noticed on the county website when I was pulling a permit that where it should say if the house has a water view it was left blank. Does stuff like this affect an appraisal and should we talk with the county about adding it to the tax record?
-How important are permits for updates when appraising a house? I tend to pretty much always pull permits for my work but just curious.
-Besides some of the work noted above, we plan to give the kitchen a facelift by painting the cabinets and installing new countertops, sink, and faucet. This is more for us since I've heard appraisals aren't too terribly swayed by the quality of finishes. Is that true?

Thanks in advance for your help and advice!

 

[shrubberyvaluation]

Hello,

As the title states, it is looking like we are most likely going to be directly in the path of a new Seattle light rail project and loose our house within the next few years. I'm not really sure of the exact timeline right now. The final light rail path will be decided at the end of 2023 and the project completion date is sometime in 2032. I am just now starting to research the process but it sounds like the house will be appraised prior to negotiating a buy-out price from Sound Transit. Based on the timeline, we are expecting to be in the house for a few more years. We are still planning some updates around the house but obviously don't want to throw money away. I am a general contractor and do 80-90% of the work so the updates are relatively inexpensive for Seattle standards. Here's a breakdown of the house and some of the things we are hoping to do.

-It's a small 1920's bungalow - 1000sqft on the main level and ~300-400 sqft of unfinished basement. The entire house has been remodeled with new flooring, electrical, plumbing, insulation, furnace, tankless water heater, and windows. We recently reconfigured the main floor from 2 bedrooms, 1 bath to 1 primary bedroom, 1-1/2 baths and plan to add at least one bedroom in the basement. Ideally add one bedroom and 1 full bathroom to the basement.
-There is a also a small semi-detached laundry room out back (8'x8'). We would like to move the laundry to the basement. Would it be beneficial to add a closet to the laundry room to make it a "bedroom"? The room would be used as a home office if we move the laundry downstairs.
-The house has a decent view of downtown Seattle and Elliot Bay. I noticed on the county website when I was pulling a permit that where it should say if the house has a water view it was left blank. Does stuff like this affect an appraisal and should we talk with the county about adding it to the tax record?
-How important are permits for updates when appraising a house? I tend to pretty much always pull permits for my work but just curious.
-Besides some of the work noted above, we plan to give the kitchen a facelift by painting the cabinets and installing new countertops, sink, and faucet. This is more for us since I've heard appraisals aren't too terribly swayed by the quality of finishes. Is that true?

Thanks in advance for your help and advice!

1. You might also want to try to ask attorneys knowledgable with eminent domain.
2. I have no experience with eminent domain but I am curious why you would want to update a house knowing this is about to happen.
3. I would not be requesting things to be added to the tax record, it would just result in higher taxes.
4. I am not familiar with eminent domain, you would need to know the definition of value being used...market value...liquidation value...salvage value...etc
5. Some markets care more and will value quality of finishes more than others. There is also difference in quality of appraisers.

*Note* I have no experience with eminent domain appraisals.

 

[Fernando]

I assume an appraiser will come to your house and you can tell him/her the improvements you'd done in the past.
When you get the appraisal you have the opportunity to disagree with the value. You may want to talk to an independent appraiser to review the appraisal and see if it can be increased.
It's like an appeal and you have chance to dispute their findings.

 

[Mark K]

Too many moving parts here.

Suggest you contact an appraiser from the local chapter of the IRWA (International Right of Way Assoc.). They have the local knowledge to properly advise you.

I do mostly eminent domain appraisals and could advise you for this area but state laws concerning this area of expertise vary widely from state to state.

BTW, get ready for the letters from the ambulance chasing attorney firms telling you not to sign any offer from the state because they can get you more money. As soon as the project plans are finalized, the cockroaches will come out from the woodwork.

 

[Fernando]

Years ago, I had the county taking small section of my land by eminent domain. I think they paid me $10,000.
It was difficult appraisal to do using commercial comps at least 10 miles away and in different cities. WTF.
Considering the cost and time to fight the county to get more money, I accepted the offer.

 

[glenn walker]

What if the value goes down in the next three years? - Don't do anything. I have sold two for freeways, both paid me more than they were worth and also "Eminent Domain Sales " are Tax Free Sales.

 

[Elliott]

I'd suggest you find an attorney who specializes in takings. Also remember that you are entitled to be made whole, which should include legal and moving expenses (though I'm not an attorney and not giving legal advice).

 

[TerryRohrer]

I would be careful about making improvements. As noted, laws differ, but in many cases, the value is based on the date the project was announced so that you don't profit from, or lose, due to the impact of the project. I would confirm when that date is. Also, in my experience, the largest payoff generally goes to the last seller. In most condemnation cases, the condemning entity will overpay to avoid litigation. An attorney skilled in the process is likely who you need advising you. The conundrum is finding that spot where the gains from holding out just exceed the added costs for doing so!

 

[glenn walker]

Way to early to speculate , I have seen these things go on for many years past the expected date and sometimes even be re-routed, I do not see any need to spend money on a attorney as they will not help you but will take your money. In California on eminent domains they have always paid us more than what we could have sold it for- The person with the worst house makes the most money because in reality its the land they want not the house.

 

[Fernando]

Most improvements done in house won't get back more than you spent. If you know the taking is eminent, hold off in putting a new roof, new furnace, etc.