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Quality Rating And Price/sq.ft

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Tumbuktu

Sophomore Member
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May 23, 2013
Professional Status
Certified Residential Appraiser
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Texas
Does anyone use Price/Sq.Ft. to get General Idea about Quality Rating, especially when the rating is on the border of Q3 and Q4 and it gets difficult to decide which rating to use.

For example, if Resulting Price/Sq.Ft (after subtracting Land Value, Pool etc.) is less than 100, it is Q4. Of course this should not be the only criteria but at least one of the primary ones.

As always feedback and guidance
 

J Grant

Elite Member
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Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
The two should correlate, yes.
 

Randolph Kinney

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Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Marshall & Swift Residential Cost Guide believes price per square foot is a defining measure of quality. Simply put, the construction materials and design are more expensive on higher quality homes.
 

J Grant

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Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
If it does not cost more to build a house or for the upgrades/components within the house, where is the "quality"? The building materials should cost more and level of workmanship is typically higher, along with custom or architectural features such as higher ceilings or moldings, details, etc.....which costs more to build than a low ceiling plain box. It all fits together in the appraisal as buyers in lower to higher price ranges have certain expectations relative to the price points.
 

Tumbuktu

Sophomore Member
Joined
May 23, 2013
Professional Status
Certified Residential Appraiser
State
Texas
The problem is that as the GLA grows it costs less per sf for the same quality.

Correct. This was the second variable that I intended to get into. There can be other variables but it will complicate the matter and lead back to the starting point.
Considering the GLA only, any General Benchmarks.

Example:
If GLA is more than 3000 Sq.Ft. - Less than $80/Sq.Ft. is Q4
If GLA is less than 2000 Sq.Ft. - Less than $100/Sq.Ft. is Q4

Thanks everyone for the feedback so far
 

Terrel L. Shields

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May 2, 2002
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Certified General Appraiser
State
Arkansas
Lenin said "Quantity has a quality of its own." If I have access to actual construction costs, then I can vet the builder. We have a local builder, politically connected who touts his "quality" work. He typically gets 10%-20% more. It is all fluff imho. His houses seem no more than average quality. In fact, in many ways the interiors are commodity grade. Painted bookshelves instead of stained oak, painted trim from Lowes, etc.

For older houses, I would rather rate them by specs, then compare those specs to the quality rating in the cost book. Every cost book has 'em.
 

Peter LeQuire

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Jan 3, 2005
Professional Status
Retired Appraiser
State
Tennessee
The M&S Residential Cost Handbook's descriptions of the various quality descriptors (and photos) provide useful information about what differences there are between different quality levels. I find them somewhat more useful that the descriptors of UAD quality ratings.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
The guides and observation...walk through enough homes and it is apparent.
 

Randolph Kinney

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Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Generally speaking, the higher quality homes are larger in size. They have larger sized rooms, more rooms, more bathrooms, large closets, more garage spaces, larger lot size, etc.
 
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