Are you blowing the Appraisal?
Saturday, May 11, 2019
Appraisals are a funny thing and I think we all know that they are just someone's opinion of value, but it is usually their opinion of value at the time they do the appraisal. It is not up to the appraiser to vision what a house will look like with new paint and flooring or a new kitchen. There is no section in an appraisal for "good bones, great potential, or fixer." These are all items where the appraiser will usually downgrade the property slightly and hit the value 10-15-25K or more? So when you upgrade and put a new kitchen, new bathroom, new flooring, a pool, or a gold plated fireplace then the appraiser will give you a slight upgrade maybe 10-15-25K? They will not give you what you spent on the upgrade, but they will compare that to other like properties and make adjustments! Price per square foot doesn't mean a darn thing! I have a house on my street that is half the size of my house and it sold for about 75% of what my house would sell for. We make adjustments for square footage depending on the area, but you will not see an appraiser ever make an adjustment for $300 per square foot, although most of us would like that! There may be an adjustment for an extra bedroom or bathroom, but a 6 bedroom 4 bath 2000 square foot house is not that much more valuable than a 3 bedroom 2 bath house with the same square footage. If there is a view on the house then make sure that the appraiser doesn't have to get on a ladder to see it. Growth of trees and bushes can kill a view and hurt your appraisal. If you want to get the highest value when an appraiser comes to your home then make it look fresh, clean, organized and make sure it smells good too! Sincerely, Mike Meena Augusta Financial 25129 The Old Road, Suite 350, Santa Clarita, CA 91381 Phone: 661-260-2970 Fax: 661-554-7121 Email - Mike@AugustaFinancial.com