• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Pool Incomplete

Status
Not open for further replies.

JTRock

Junior Member
Joined
Mar 1, 2007
Professional Status
Certified Residential Appraiser
State
Texas
Appraising a property for refinance purposes. The borrower is having a pool installed and it is not complete. Should I appraise the property and just not give value to the pool and do I need to take into account a cost to cure of filling in the pool? Appraising as is... thanks
 
How complete is it? How much more do they need to spend to complete it?

In my neck of the woods a typical in-ground pool is worth $7-10K even though they might have spent $30K building it.
 
I had a similar property... pool was incomplete (was 1/2 way done, per the pool company). Here's what I did:

Cost of pool (per pool company as well as invoice): $40,000

Range of adjusted values between properties w/ and w/o pools: $30,000 - $50,000 (buyers in the area typically demand pools per my discussions with RE agents) - sample size: 27 properties with pools, 15 properties without pools.

Sales with 1/2 finished pools: 0 (DUH! :laugh:)

Determined property has functional, CURABLE, obsolescence.

Reconciled adjustment for properties with pools vs. without pools: $45,000 (hybrid of cost of pool plus middle to upper range of sales comparison adjustments... more adjustments fell in the 45-50K range anyway).

Percent of pool finished: 50%

Adjustment for sales without pools: +$22,500
Adjustment for sales with pools: -$22,500

Cost of appraisal: priceless.

:peace:
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top