| Author | Post |
|---|
FLA GIRL
Member
|
Posted: Wed Jul 23rd, 2008 12:15 am |
|
| FL, you are totally right, mine was done for a refi- when I first put my home out here I was sitting at 101,000. after construction, repalcement value of my home is around 100,000. I know where your coming from but unless you have done these it is quit hard to understand them
|
Fl Crkr
Member
|
Posted: Tue Jul 22nd, 2008 12:34 pm |
|
| I think you might be missing some points here, one appraisal does not fit all. You have to be specific on the reason for the appraisal. A current value sale appraisal gives you a snapshot of what your property might bring if sold today. A replacement appraisal will tell you what the cost would be if you had to rebuild at todays material cost. Price, Value and Cost are not interchangable terms. The Value of your home probably isn't what it would Cost to build or replace it. The Price of your home may not be the same as it's Value if the location is less desirable. If it Cost the same $/sq ft to build a house, then where it is located will affect its Value and Price.
|
FLA GIRL
Member
|
Posted: Tue Jul 22nd, 2008 11:21 am |
|
| In 2005 my home appraised at 130,000, I had it appraised april of 2008, it only went down about 15,000. I figured it would be worse, I am very rural, with not really any neighbors and with a modular on 1.25 acres of land, the appraiser I used was very knowlegable and I like her, I have used several here in chobee, robertsons (will never use again took 2 months for them to get it right) and the other was fulford they were ok for a small town company, If you would like the appraiser I used she is out of st lucie , and Don is correct I have asked all the questions that he explained and falsely have been told that trees and pools will bring it up, but it was untrue the only thingit grings up is your property taxes
|
Don Horner
Member
| Joined: | Sat Jun 3rd, 2006 |
| Location: | |
| Posts: | 244 |
| Status: |
Offline
|
|
Posted: Tue Jul 22nd, 2008 04:13 am |
|
Diva has it right. Your appraiser is an idiot. Of course, it makes a difference where your house is located. Part of your appraisal is based on land value, and land value varies widely based on where it is and what surrounds it. For that reason alone, the total value must vary based on location.
Condition is also as important. If the property is run down, it will cost real dollars to bring it up to standards, and the value must be lowered on such a property to compensate.
On the other hand, there is a certain grain of truth in what he is saying in this present market. Regardless of what value may be found in your property, at the present time only properties of a certain value are likely to sell. That value is either at the lowest end of the scale or the highest -- properties in between are basically just sitting.
Let me give the reasoning for that statement. At the high end, people with plenty of money don't really care about the market or the appraisal, they want what they want, and they are ready and willing to pay for it. Because they can buy virtually any property, however, they are only going to fork over the dollars for the best property in a given area. While it's obvious they won't buy from the bottom tier, they also won't buy from the middle tier, unless there is something absolutely unique about the property that also happens to be something they want.
For anything other than the highest properties and the richest buyers, it is extremely difficult for an average buyer to obtain financing. They have to have a nearly perfect credit score, 20% to 30% cash and adequate income to get a loan. The days of easy credit are gone. Now, there are some folks in that position, but there are a couple of other factors involved. One is the fact that under the Save Our Homes program, the property taxes on the home being purchased are going to go up -- WAY up -- when it changes hands. A friend of mine owns a middle priced home on the St. Lucie River -- probably about $400K. Because he has lived in it a long time, he pays about $4,000 in taxes. A new owner would jump to over $10,000 per year in taxes for the same house. The same thing is true of insurance premiums -- if you can even get insurance from a national company.
So, in a market like this, it is only lower end houses that "normal" people can afford. I've had local Realtors tell me that the only houses they are showing are below $125K. Therefore, if you want to sell, you pretty much have to be in that range, no matter where you are located or how nice your home is. That's where the appraiser was telling you the truth.
Similarly, appraisal values are based on comparable sales. If the only sales in the area are for low priced homes, those are the only comparable sales upon which he can base his appraisal. HOWEVER -- an appraiser can, and must, adjust the value of those comparable sales to come up with a value for the subject property. For example, if you have a 3 bedrrom house and all of the comparables are for 2 bedroom houses, he can add an amount to the comparable sale to compensate for the extra bedroom. He can, and should, also adjust for location, type of construction, amenities, condition, etc.
In the past, appraisers where criticized if they made adjustments of more than 10% in value. They were told to get better comparables. In this market, however, the 10% rule goes out the window if there ARE no other comparables.
A word about pools and other features -- they should reflect increased value, but historically in Florida, pools do not add as much value as they cost. A brand new pool installed at a cost of $50K will probably add only $20K to $25K in value, and sometimes less. They may even lower the value for some buyers if they do not want a pool -- a family with a toddler, for example, or elderly buyers who do not swim and do not want the expense of maintaining a pool. In those cases, however, the buyers tend to move on to properties without a pool instead of lowering their offer.
How do I know any of this? In addition to being a former real estate broker with training in appraisales, my son is a certified appraiser who is a regional manager of staff appraisers for a major national bank. The bank for which he works has a reputation for accurate appraisals, and lost much less in foreclosures than other banks. We sit around and discuss appraisals the way some others discuss baseball or football statistics.
|
Concerned Taxpayer
Member
| Joined: | Sat Feb 23rd, 2008 |
| Location: | |
| Posts: | 92 |
| Status: |
Offline
|
|
Posted: Tue Jul 22nd, 2008 02:40 am |
|
| I hope that you did not pay this so-called "appraiser" a whole lot of money to tell you nothing but absolute nonsense. Another example of expertise based on sleeping overnight in a Holiday Inn Express? If there has been a 45% decrease in local home values, someone needs to let Bill Sherman (County Property Appraiser) know so that all of our property tax bills will be drastically reduced!
|
MKH
Member
| Joined: | Wed Oct 26th, 2005 |
| Location: | |
| Posts: | 63 |
| Status: |
Offline
|
|
Posted: Tue Jul 22nd, 2008 02:37 am |
|
| That is what he told us today on the phone. I was shocked to say the least. We spoke to several others that we just as shocked as we were. But he will not come off his first appraisal. He said that he would not be able to sleep at night if he gave us anything more. I'm telling you we were shocked!!!!
|
designdiva
Member
| Joined: | Wed Feb 15th, 2006 |
| Location: | |
| Posts: | 1168 |
| Status: |
Offline
|
|
Posted: Tue Jul 22nd, 2008 01:03 am |
|
The appraiser you hired is an idiot.!!!!!!!!!! You sure this person is qualified to do appraisals ???? I have never heard such crap ..... It MOST CERTAINLY does make a difference where your house is built..... you could never get the same value for a home built amongst trailers as you would the same house being built in a subdivision.Would love to know who did your appraisal for you.......Diva 
|
Lakota
Member
| Joined: | Tue Nov 6th, 2007 |
| Location: | |
| Posts: | 6 |
| Status: |
Offline
|
|
Posted: Mon Jul 21st, 2008 11:38 pm |
|
I want some input on this subject from some locals.......maybe I'm crazy, but I think it matters where you choose to build your home and what is built around your home. Tell me what you all think.
We had our house appraised this last week and was totally shocked at the figure that came back to us. We knew it would not be as high as it was 3 years ago, but we did not expect an almost 45% drop in value. After we called our local appraiser to question the value, he enlighted us by telling us several things. One, it does not matter where you build your home, Lazy 7, Oak Park, Palm Creek, the Country Club or Eagle Point it has no more value than if you built it in the middle of 25 trailers that were 50 years old and the never been kept up. It does not matter if your neighborhood is kept up or if there are trucks on blocks in your front yard. And you all need to know this too, he also told us that it didn't matter if you had a pool, it added little or no value to your house. The only thing that really seems to matter is what has sold in the past three months, that is a similar home to yours. So if all that is sold in town in the last three months is run down houses that might be the same square footage as yours, that is what your home value seems to be based on. Does this seem wrong to anyone else other than us? I choose to build my home in a nice area that I knew would increase in value over the years, but I guess that does not matter in this town.
I know property values have decreased after the big market boom three years ago, but a 45% decrease is huge!!! He told us that other appraisers may have come up with a better figure than he did, but he wouldn't be able to sleep at night. I'm gald that he will be able to sleep, but I'm not sure that I will be able to sleep knowing that it didn't matter where I built my home, it has no more value due to a good location or bad. I guess I now understand why so many properties in Okeechobee as trashy and unkept, it makes no difference in the value of your home. Amazing!!!
Has anyone else had this problem? Give me some in put here. Thanks
|
Current time is 09:59 am | |
|
|
|