Monlithic Slab Versus Pier And Beam Construction

[timd354]

Ladies and gentlemen, I have an appraiser and a review appraiser in a pissing match over whether or not the market recognizes monolithic slab construction to be superior to pier and beam construction. Just curious to what opinions appraisers about this issue, Louisiana appraisers in particular since the property at issue is located not too far from Shreveport.

 

[Doug Wegener]

Ladies and gentlemen, I have an appraiser and a review appraiser in a pissing match over whether or not the market recognizes monolithic slab construction to be superior to pier and beam construction. Just curious to what opinions appraisers about this issue, Louisiana appraisers in particular since the property at issue is located not too far from Shreveport.

Raised floor vs. slab?

Marshall and Swift says the slab cost less. I have heard some appraiser's say that raised floor is superior. You have trouble with the plumbing in a slab and you have some serious problems.

At any rate, I have never seen a difference in the market that could be attributed to that only. When I sold real estate, I never had a buyer insist on either. It's just not on most lists of what they got to have.

 

[jay trotta]

In either case am sure they need to meet FEMA requirements; IMO, do not see the benefit unless it's an elevation issue. Because my work along the Shoreline here, most sales are geared for the Location/Proximity & Fit & Finish quality.
The structure, needs to meet Code; that said, I have yet to find a solid support factor for the differences you noted. I have also done several "Post & Beam" houses, that have displayed only minimal differences, that could also easily relate to; location, fit & finish. At this point it would appear to me they would be equal from a market standpoint, unless there were strong support factors.
Good Luck on that one

 

[Randolph Kinney]

In my markets, when your subject has a slab foundation and the neighborhood has a majority slab construction, that speaks more to when the homes were built. Older homes have different construction materials and designs. If they are properly maintained and updated, they will compete with newer slab construction.

 

[Mark K]

There used to be a huge stigma against slabs in this area dating back to the 60's or so when a lot of cheap homes were built on poorly constructed slabs. Very discernible and supportable difference in sales prices/values.

Not so much anymore. In the 70's -90's most homes were built on crawl spaces but moisture became an issue over time and mold/rot started causing problems. Most of the time I can smell a wet crawl space when I walk into a house.

Most new construction in this area now is either basement or slab. Crawl spaces cost about $10K more than a slab on a 2,500 s.f. custom home but the market recognizes no value difference anymore. A lot of people that had crawls will never have one again because of the problems.

 

[hastalavista]

This sounds market-specific to me.

I can see an advantage of a raised foundation (say, 1.5 feet) if the subject is in an area that is subject to 1-foot flooding.

 

[Mr Rex]

It typically costs more to build on a crawlspace than a slab, however most appraisers forget to include the site prep required to get a level compacted pad with proper drainage etc. I used to see a slight increase in prices for a crawl over a slab but lately its harder to discern. There is one national builder that does everything slab on grade and competes $4$ with houses on crawlspaces in the same subdivisions. Being on a slab does automatically provide better accessibility for disabled folks.

 

[Michigan CG]

I believe cost between the two is about $3/SF. I can most likely find better things to argue about.

 

[timd354]

I believe cost between the two is about $3/SF. I can most likely find better things to argue about.

I agree with most of the posts in this thread. I have a situation where we did a field review as part of our QC process and the field reviewer found comps that are located in much closer proximity than the Original Appraiser's comps and the field review opinion of value came in about 15% lower than Original Appraised value. We cited the lender for a significant error and asked them to comment on the filed review. The lender sent the filed review to the Original Appraiser for a response and he responded that the subject was built on a slab, which is superior to pier and beam construction and the Review Appraiser's comps are not comparable since they feature inferior pier and beam construction. I think that the original appraiser is likely shoveling a bunch of b.s. but wanted to hear the opinion of others on the issue. I would love to hear from Louisiana appraisers since the property is not far from Shreveport.

 

[BarrySW1963]

Had a report kicked back recently for not automatically giving pier & beam a big boost over slab. In this area, P&B primarily means it was built in the 1950s or earlier, and any market boost can easily be attributable to fit, finish,condition etc., whereas almost all new construction, even high-end construction is on slab. A quick scan through the MLS in a local high-end zip code showed that 39 of 47 $1M+ homes built in 2015 were on slab, even with very very nice interior finishes, even when competing with remodeled high-end homes on P&B. I think these builders wouldn't be ignoring market preference and building on slab if their discerning buyers cared about any distinction. I would strongly suggest this is highly market area dependent.