Unique Property Appraisers

[Mike Kennedy]

There is a property in my area in which a potential investor is interested ... it is very unique, to say the least ... for lack of a better description, it's a castle, a very big one ... off-the-charts custom-built.

Of course, there are no comps in our area for this kind of property and to find anything remotely like it that has sold in the past couple of years would require a regional search, if not a national or international search.

Is anyone aware of an appraisal firm that specializes in these kinds of appraisals? Someone who may already have a database of similar sales?

Yes, I am aware that there are "highest and best use" issues with this property, but the property is so unique that it could reasonably be considered residential or commercial ... very tiny market regardless of use.

Thanks

Arkansas

http://theluxurybrokers.com/mansions_for_sale_in_arkansas.htm

 

[J Grant]

Maybe it could be converted to a hotel?

 

[George Ellerman]

George-Is that the house that Rainman was filmed in? If so, I aprpaised it about a dozen years ago. Nice house but could easily use 1M in upgrades!

No-They filmed Rainman at a place on Beechcrest Lane in Walnut Hills.

 

[Elliott]

Bill,
Here's a half dozen to get you started. Sometimes calling one castle owner will
lead you to another one. Hope your not doing this for an AMC and getting $300.

Arkansas

ROCK HOUSE CASTLE - Little Rock

UNKNOWN CASTLE ?? - Alexander Mountain - Little Rock

HEART ROCK CASTLE - Winslow

OZARK MEDIEVAL FORTRESS - Leadhill

DROMBORG CASTLE - Fayettville

CASTLE ROGUE'S MANOR - Erueka Springs

 

[Bill Featherstone]

Clarity

First, let me thank everyone for chiming in and trying to help ... I really appreciate it ... it never ceases to amaze me just how responsive and helpful this site is.

Second ...

1) this is not an AMC appraisal ... potential investors are seeking a single-point value
2) I am not appraising this for a few hundred dollars ... though I can certainly be as naive as the next guy, I've been around the block more than a few times ... that said, I admittedly have charged WAY too little for my share of complex appraisals
3) if I were to appraise this, I would indeed have my mentor review and sign the report, as well as do whatever is necessary to become competent in tackling the assignment
4) my personal opinion is that you should only compare this property to other similar properties in order to develop a credible opinion of value ... comparing this to other properties in the area with large square footages and high-end custom features is simply not good enough ... the would-be buyer of this property is entirely different than the buyers of those properties ... additionally, the cost approach is dubious at best, as this is a property with incomparable detail that has literally been built over a 16-year period on the fly ... a true labor of love if there ever was one

In my opinion, these investors would be better served by having me appraise the land and by having a qualified builder give them a quote on replicating all of the improvements and then extracting from those two values as they see fit, as much of the value in the improvements is entirely intrinsic and subjective. However, their insistence on a single-point value has led me here to see if I can find an appraiser that specializes in this kind of work and/or has data for similar properties already developed. As stated here, the cost to do the research alone to come up with true comps for this property would be well beyond what many investors would consider "reasonable", not to mention the cost of actually completing the appraisal.

This is a castle, in the old, non-masonry style ... though huge and stately as what most folks would refer to as a "mansion", it is a very unique design with a very tiny market that can appreciate its homage to history.

 

[eld2310]

We've got something like that here, although it's no longer strictly a single family residence: Thornewood Castle

"In 1907, Mr. Thorne purchased a 400-year-old Elizabethan manor in England and had it dismantled and shipped, brick by brick, from England."

It hasn't been sold since 2001 but it's been refinanced a few times - I'd love to see the appraisals, I'm sure they would be really fascinating!

.

 

[The Warrior Monk]

Here's one that was out by me. It included such things at an authentic, imported English pub, an aquarium, an extremely detailed paneled living room (Stanford White style), and all sorts of other goodies. About 24,000 sq.ft. above grade, an 11,000 sq.ft. finished basement, and a sub basement. It's since been razed.

http://nymag.com/daily/intel/2008/12/calvin_klein_tearing_down_his.html

It's not the only one either. Another Tudor type residence, about 20,000 sq.ft. above grade, met the wreaking ball.

 

[eld2310]

Here's one that was out by me. It included such things at an authentic, imported English pub, an aquarium, an extremely detailed paneled living room (Stanford White style), and all sorts of other goodies. About 24,000 sq.ft. above grade, an 11,000 sq.ft. finished basement, and a sub basement. It's since been razed.

http://nymag.com/daily/intel/2008/12/calvin_klein_tearing_down_his.html

It's not the only one either. Another Tudor type residence, about 20,000 sq.ft. above grade, met the wreaking ball.

That's a shame. I'm sure the new monstrosities...er, homes won't have near as much character. I admit to checking out the Hamptons on Google Earth a few times - some seriously unfathomable money out there.

.

 

[residentialguy]

I would indeed have my mentor review and sign the report, as well as do whatever is necessary to become competent in tackling the assignment.

Good for you. Thanks for clearing that little debate up! :icon_mrgreen:

Out of curiosity, how did a licensed appraiser get such a massive assignment that most Certified appraisers don't have the competency to do?

 

[J Grant]

Imo, there are two ways to do an assignment like this. One, is to assume there is marketability, due to the fact that the home is so unique and beautiful and cost a lot to build. The other way is to do a marketability study first, and the marketability would impact value.

If one assumes a castle has marketability becuase it is beautiful, then yes, one can contact an appraiser or other source with a data base of sales from all over the USA, or a multi state region. If one includes enough geograpahy, and goes back far enough in time, one can find a sale of a castle somewhere.

Does finding a few sales over a large region prove marketablity though? Compared to the number of sales, for example, how many similar castles were razed? How many went into foreclosure, and how many are still on the market as listings and for how long? If you can't answer that, or hire an expert to find the answers, you are not addessing the marketability.

Also, how many are used for private residences, or upon sale,are they turned into hotels or museums or other uses?'

What is this investors' interest in this castle, what does he plan to do with it? Live in it? Resell it? Turn it into a hotel?

Sure, one can do a cost approach and reproduce the cost, but that tells you nothing about the marketability of what already exists.