Need Log Home appraisal advice!

[Burns5150]

Hello,
We are in the middle of putting our home up for sale...and have began the selling process.
We got an up to date appraisal done a few weeks ago, and as always...our home came in VERY low. It is a Log Home(custom), and the appraiser did not find fair comps around our area (near Savannah Ga). Our home was compared to conventional 2x4 framed, vinyl sided homes, and one smaller cabin. Log Homes are rare around here, and the ones that are here... have not sold. We understand the process of comps and appraisals, and the hit Log Homes take without comparable comps. No sales,means no fair comps.
We are searching for any advice and any direction to continue our process. We tried the Marshall and Swift Log Home Appraisal Guide, but the book as been discontinued and no longer available.
Also, any Log Home Appraisers, or places that are Log Home knowledgable would be a great help. we have searched and searched, with no good result.
Thanks in advance for ANY help!!

 

[JTip]

I have completed multiple log home appraisals over the years in my area.

Log homes are unique and built to the owner's preferences. Bedroom here, bath there, electrical outlet right there. The floor plan will always be as it is today (true logs).

I have extended my radius 30, 40, 50 miles to find similar homes. They are unique homes for unique families. Log homes are nice but I would not want one. For the cost per square foot to build a true log, one could buy a very nice custom home in my area built to my specs with the amenities I want. That's just me, who cares what I want.

You will not get a dollar for dollar return on a log home. I looked at one about a month ago, new construction (researching a land sale) and had the opportunity to speak with the owner who was there at the time. I would assume it was 1,500 s.f. plus a large loft, nice covered front porch, poured foundation with a one car internal garage. The lot was prepped, sand mound and well installed, poured basement, logs set. The electricians were there installing outlets (he had them all market out). No floors finished, no bath, kitchen or lights. He already had $350k in it and he had a big smile on his face. Retired and building the home of his dreams across from an awesome trout stream, backdoor to 5,000 acres of state game lands.

How would I advise you? Put your home on the market for what you want and then wait. No bids or buyers then lower the price. An appraisal is an opinion, not law or the final word. The true market value of your home is what someone will pay for it. Sounds like the log homes in your area were built by people wanting log homes the way they want them built and plan on keeping them for a long time (like the homeowner I mentioned above).

Best of luck.

 

[Terrel L. Shields]

Log Homes are rare around here,

The major and insurmountable problem. I looked into a log home myself and that was what actually stopped me from proceeding. I love 'em myself.

In a refi I would always recommend an in house lender and conventional loan - no secondary market. To sell however, the buyer is going to be from a select pool of cash buyers or who prefer anything but secondary market.... which makes your problem doubly difficult....and of course, those before you who sold log homes also faced the same issue thus had to sell at a much lower price than they wanted to....meaning your comps are low.

 

[Elliott]

No sales,means no fair comps.

I'd prefer, "No sales, means no comps." So you have to use the next best. So if there is a whippity-do house that is better quality, but beyond basic utility, then its the best your going to find.

I've done my fair share of log homes and have a second home where every other home is a log home. When they sell, they do sell at a premium. But return isn't directly related to the extra cost of a log home. Its somewhere in the middle between cost and standard utility.

 

[Doug Wegener]

Log homes

Hello,
We are in the middle of putting our home up for sale...and have began the selling process.
We got an up to date appraisal done a few weeks ago, and as always...our home came in VERY low. It is a Log Home(custom), and the appraiser did not find fair comps around our area (near Savannah Ga). Our home was compared to conventional 2x4 framed, vinyl sided homes, and one smaller cabin. Log Homes are rare around here, and the ones that are here... have not sold. We understand the process of comps and appraisals, and the hit Log Homes take without comparable comps. No sales,means no fair comps.
We are searching for any advice and any direction to continue our process. We tried the Marshall and Swift Log Home Appraisal Guide, but the book as been discontinued and no longer available.
Also, any Log Home Appraisers, or places that are Log Home knowledgable would be a great help. we have searched and searched, with no good result.
Thanks in advance for ANY help!!

I have done a few. As one other person noted, I have gone extreme distances to find Log Home comps: i.e., over 100 miles.

As you probably know, Log homes vary greatly in quality.I am sure comparables do exist but they may be dated sales or they may be sales far away. Time adustments are one of the easiest adjustments to make,so I would consider looking for older sales.

Even if they are distant comps, adjustments can be made for the differences in site value.

Log Homes tend to have a much lower turn over rate because often they are someones "dream home" and they have it built with no intention of moving.

If I had one and was pricing it to sell, I would look at other similar quality, similar GLA homes, similar age, on similar sites. They are competion in the market. I wouldnt worry about Log Home comps.

Whatever Log Home sales exist in your area, I would also be talking to the Listing agents to get their opinion as to the value.

Is this an older Log Home?

 

[444nutman]

I have completed 2 log home appraisals in the last 6 months. It is not unusual for comps to be located over 10 to 40 miles away. I like to have 2 log homes in my sales grid, and adjust for location if necessary. Then search in the area around the log home sales to see if there is a reaction to the design of the log home.
Are you using a realtor that has some experience with log homes?
Is it possible for you to finance the home yourself? If so that could make it easier to sell. Try to find a cash buyer.
The problem is lenders don't like to lend on homes that are unlike other homes in the area. The last one I did, the loan ended up shuffling around to 3 different lenders.
Maybe one of the Georgia appraisers will see this and know of some log home sales in your area.
You could always consult a local appraiser.
Good luck

 

[Burns5150]

Thanks guys for thew advice so far. Here is a few more details about the home itself.
The home itself is about 7 years old... Solid 8" logs walls and around 3878 sqft total (2750 sqft heated/ with wrap around porch), Two story, 4 bedroom,3 bath,large kitchen,dining room, great room,utility room, loft.

Some of the details of the house are:
Full mason Stone fireplace
Cathedral 28' ceilings
Antique Heart Pine wood and Ceramic tile flooring
Log sided interior walls (where there are not already solid walls)
Higher end appliances,fixtures,counter tops,cabinets, etc
...and many, many small custom touches.

The custom plans were laid out by the Log company and us together, at there location...And ALL work on the home had to be done by people familiar with log homes (since these are built nothing, like normal construction)..custom from start to finish. I assisted in all the home process as well as much of the finish work.
Our land has the home plus 5 acres, with 30 more as an option. It sits on a very secluded plot of land, with timber and open fields. We are a 30 minutes from Savannah and right outside a small town, but are located in a rural area.

There are a few log homes around, but of coarse they are not for sale. As said before, these are always build as "dream homes" (as was ours), and never intended to be sold. In most cases, these are built with no exspenses spared, and with great detail...much like all custom homes.... yet, they are very taste specific. The log cabins are custom form wiring, plumbing, heating and air, settling, finishing, etc....all things needed to be considered during the process...even down to the banking, appraisals, insurance itself.
Why build it you ask? They are beautiful homes, very well built, very efficient, and make great homes. Why sell it? Downsizing, and become dept free...which will be great.
Our most recent appraisal was $265,000... way under the cost of the home. With homes log homes being constructed at $150-175.oo per sqft, ours much the same...the math does not add up.
With more detailed information....Any more advice??

 

[Lobo Fan]

Your big problem will come when a potential buyer goes to get a loan. Most banks will require at least one log comp and place distance and time restrictions on comp selection. If they cannot find a comp, then that demonstrates no market for log homes in your area. That is just how underwriters think. I have appraised a few log homes over time and they are always a challenge.

If you have a relationship with a local bank or credit union, I would talk to them up front about a loan for a potential buyer. If you can find one with some knowledge of your market it might ease the process. Most big banks have appraisal reviewers by computer or in India, where they could not find Georgia on a map.

Good luck, and keep doing your research. Maybe some log home builders would have some comps that do not appear in any MLS services? If your county assessor is cool, they mat be able to steer you to some other closed sales.

 

[Mountain Man]

In Savannah, a coastal area with an over supply of wood boring insects and coastal weather? Most homes are going to be traditional construction that can take a beating and are more similar in style to each other (homogeneous). You may not only run into a problem of being the odd ball, but you'll also suffer obsolescence for being the odd ball. So hate to say it... but yeah, I'd expect that the market value would be less than your expectations. However, if you want another opinion I'd say search for an appraiser who has been in the business 10+ years and has some experience with other odd properties. That will require some time doing phone interviews, but it's better than just picking a name off an internet site.

 

[Delta85]

I just appraised a log home last week. I've done a bunch over the years. I found one decent log sale comparable but had to go back 2 years and out 10 miles. I also found a similar log home listed for sale in town. The rest of my comps were the most similar homes I could find and adjustments were made.