• 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.

Question About Upgrades

Status
Not open for further replies.

ReverseUrMtg

Freshman Member
Joined
Feb 15, 2017
Professional Status
Banking/Mortgage Industry
State
Texas
Hi! I received an appraisal for a borrower recently where the appraiser rated the condition of the home as a C3 and the quality as a Q3. I understand what that means, however, under upgrades, he wrote "UPGRADES/AVG." My borrower was very disappointed with the value and I am trying to help them understand what everything means. This one comment, however, is something which is not clear to me. Can someone help? I would sure appreciate any feedback.

Thanks!
Laura
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Sometimes a home may have special features (upgrades) that are above the ordinary... say the house has marble countertops, commercial oven, outdoor fireplace, Jacuzzi, crown molding, all the bells and whistles. While those may not bring a $ for $ return, they may put some premium on a house. If the house had no appliances, or was below typical, (1 3 fixture bathroom, linoleum flooring, etc.) then it would be below average. So upgrades "average" would reflect that these special features were pretty typical compared to the comparables. That's my take anyway.
 

ReverseUrMtg

Freshman Member
Joined
Feb 15, 2017
Professional Status
Banking/Mortgage Industry
State
Texas
Sometimes a home may have special features (upgrades) that are above the ordinary... say the house has marble countertops, commercial oven, outdoor fireplace, Jacuzzi, crown molding, all the bells and whistles. While those may not bring a $ for $ return, they may put some premium on a house. If the house had no appliances, or was below typical, (1 3 fixture bathroom, linoleum flooring, etc.) then it would be below average. So upgrades "average" would reflect that these special features were pretty typical compared to the comparables. That's my take anyway.

Ahhh, OK. That clarifies a lot for me. The client read it as "our upgrades are only average??" This will help me to explain what it means. Thank you so much!
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
however, under upgrades, he wrote "UPGRADES/AVG
Sometimes appraisers forget that the transaction party may read the appraisal. I'm going to guess here: I would explain to the homeowner that Q3 and C3 mean "above average" and the appraiser meant that the upgrades were average Q3 upgrades....in other words, they were typical for good upgrades.

EDIT: Or what Terrel said, lol :shrug:
 

ReverseUrMtg

Freshman Member
Joined
Feb 15, 2017
Professional Status
Banking/Mortgage Industry
State
Texas
Sometimes appraisers forget that the transaction party may read the appraisal. I'm going to guess here: I would explain to the homeowner that Q3 and C3 mean "above average" and the appraiser meant that the upgrades were average Q3 upgrades....in other words, they were typical for good upgrades.

Thank you!! This is exactly what I needed in order to explain it to the borrower. They felt as though the appraiser was saying that they had "average upgrades", and, of course, that did not go over well. I appreciate your time!
 
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
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks