Swimming Pool Valuations

[Tim Hicks (Texas)]

Linda,

There is nothing that says the buyer can not pay more than the appraised value. It just has to come out of their pocket. If they think it is a "good deal", then they should have not problem doing so. I have not seen the "low ball appraisal", so it would be ignorant of me to make any comments on it. However, many improvements have a "contributory value" far less than actual cost. Here in the DFW area, people spend big money on pools, workshops, barns, landscaping, etc and understand that they are losing propositions. The only way to demonstrate "contributory value" is to have "paired sales" with pools vs. sales without pools. This will demonstrate the contributory value of most improvements. We have many, many homes with expensive pools in this area and they rarely bring 50% of cost. Many times, it is not an issue because we have plenty of sales with pools and the "pool adjustment" is not needed or is only needed on a minority of comparable sales. Does this "low-ball appraisal" have any sales with pools? If so, it is quite possible that the appraisal is "dead on" and the truth has come out. Homeowners are not "trained professional appraisers" and let their feelings get in the way of factual data. That being said, appraisers are human too, and are capable of mistakes and errors. You can always get a second opinion. The borrower can always get some other kind of loan. And, the home owner sometimes has to face reality. It just depends on each individual situation.

 

[lindasheets]

Thanks for your thoughtful answers and helpful replies. Part of the problem is that there have been so few recent sales in our small section of the larger subdivision, that it is hard to get any realistic comps, with or without pools, and, the VA appraiser refuses to use comps in the continguous subdivision (built near the same time, by the same builders, generally same price range, part of same homeowners association, same pool/recreation, same school, same rules, etc.!).

 

[Pamela Crowley (Florida)]

As with others that have answered here, I don't know your market nor your subdivision/project. I do know we have projects here where even though they share the same common project amenities, there are different sections within that project that I would never consider crossing the line to compare properties in one section to another section. The Realtors push me to cross over when it would make a higher value and scream to high heaven if someone suggests to cross over when the value would be lower.

You can ask that the appraisal be reviewed. You can renegotiate the existing deal. You can wait for another deal. Again, I don't know your market. In many areas of my market now, I would stongly urge someone to take the deal they have in hand and run. I would also strongly urge someone buying to hire an appraiser for just themselves and do not trust the appraiser suggested by any Realtor or lender at this time.

 

[Dee Dee]

Originally posted by Pamela Crowley (Florida)@May 20 2003, 02:06 PM
The Realtors push me to cross over when it would make a higher value and scream to high heaven if someone suggests to cross over when the value would be lower.

Yup, that's the way it works, definately a one way street. <_<

And everyone knows that the 'good' appraisers are the ones that make the deal fly, and the ones who don't are always the 'bad' appraisers.