New Home Buyer: Log Home Purchase - Appraisal Concerns

[JTip]

I know the value is there, if you take what it would cost to build the home new

I'll give you an example: 1997 Dodge Neon with a generous value of $1,000. You go buy four new wheel/tire set. 20" chrome beauties with low profile Michelin tires that cost $750 for each wheel/tire = total $3,000.

Now, does that 1997 Dodge Neon show a 'new' value of $4,000 because you put new and very expensive tires/wheels on it? Of course not. The original equipment steel wheels with plastic hubcaps roll the same.

Apply this thinking to the driveway, pond and other 'bling' factors to the property.

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I've done many logs over the years. Within those logs are many variations of quality and design. Specialty builds are expensive and exceed the typical market (in my area). Why pay $200/sf for a log when you can get a custom build for $150/sf? You can spend endless amounts on a home to your liking, but it comes to a point of market acceptability/typical for the market and log homes teeter along this fine line (in my area).

 

[mike5809]

You obviously have a predetermined value in your mind which is not illegal for you but is illegal for an appraiser.

Ah, gotcha. Sorry for the misunderstanding. I certainly am not trying to do anything - just worried, concerned and wanted to write a post mostly to vent but hopefully find some comfort and advice from experts in the industry.. .that is all

 

[Eli]

Ah, gotcha. Sorry for the misunderstanding. I certainly am not trying to do anything - just worried, concerned and wanted to write a post mostly to vent but hopefully find some comfort and advice from experts in the industry.. .that is all

 

[Eli]

With all other elements of comparison being status quo, distance alone of the log home sales won't be a factor considering the uniqueness of the subject property. I would share the sales you know of with the appraiser.

I would go back in time if I had to. Appraisers go way back in time to study sales. Years sometimes. I feel sorry for this appraiser already.

 

[mike5809]

With all other elements of comparison being status quo, distance alone of the log home sales won't be a factor considering the uniqueness of the subject property. I would share the sales you know of with the appraiser.

Is that something which is common or advised? Should this also come from the seller or buyer?

My wife and I have been keeping a spreadsheet of all the sales of local log homes since 2013 The list is certainly not all encompassing, just what we have noticed and have found of sites such as Zillow and looking at GIS Assessment/Mapping sites but it does have over a dozen listed. The 'problem' is that the home we put an offer in on is outside of our initial search radius by a few miles... as a result, many of the homes we have listed are some distance away (15-25 or so miles) but based on your previous comment this may not be an issue.

 

[Eli]

Is that something which is common or advised? Should this also come from the seller or buyer?

My wife and I have been keeping a spreadsheet of all the sales of local log homes since 2013 The list is certainly not all encompassing, just what we have noticed and have found of sites such as Zillow and looking at GIS Assessment/Mapping sites but it does have over a dozen listed. The 'problem' is that the home we put an offer in on is outside of our initial search radius by a few miles... as a result, many of the homes we have listed are some distance away (15-25 or so miles) but based on your previous comment this may not be an issue.

Perfectly fine. I would welcome it.

 

[Eli]

Have you searched in closer radius to the subject?

 

[mike5809]

I figured providing my 'research' would have been frowned upon and something which would not be received well from the appraiser, good to know you believe differently!

I have and so far have only found 1 true log home sold within a 5 mile or less radius within the past year. Which isn't bad per say as my lender said they will only need 1 actual log comp. What also makes this interesting is the house literally sits on the county line, cross the street and your are in another county (one which I don't know as much about from a market, tax, quality, etc. standpoint), not sure if that matters or not.

 

[Eli]

I figured providing my 'research' would have been frowned upon and something which would not be received well from the appraiser, good to know you believe differently!

I have and so far have only found 1 true log home sold within a 5 mile or less radius within the past year. Which isn't bad per say as my lender said they will only need 1 actual log comp. What also makes this interesting is the house literally sits on the county line, cross the street and your are in another county (one which I don't know as much about from a market, tax, quality, etc. standpoint), not sure if that matters or not.

Look at it this way. The appraiser knows you want it. The information you give them supports and helps explain your motivations. The other questions or concerns you have cannot be answered here. The appraiser will have to answer them when going through the steps in the valuation process.

 

[mike5809]

Understood, I greatly appreciate your input and guidance! Thank you so much.