Posted by
Cristi Perkins

Apprasial question for previously loved home.

I have two homes in the same neighborhood under contract. Both built by the same builder, both about the same time, one has a heavily treed lot, the other has no trees. The first one appraised for 131 per sq ft, the second appraised for 159 per sq ft. How can it be so far apart. in the same time window and so similar in construction.

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REALTORS®
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Apprasial question for previously loved home.

By Cristi Perkins   
Posted on May 30, 2019 in Topic: Home Appraisals
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I have two homes in the same neighborhood under contract. Both built by the same builder, both about the same time, one has a heavily treed lot, the other has no trees. The first one appraised for 131 per sq ft, the second appraised for 159 per sq ft. How can it be so far apart. in the same time window and so similar in construction.
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Asked by: REALTORS®
Posted: 4 weeks ago
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Bronze
CHUKWUELOKA UZODIKE
about 3 weeks ago
There are a few reasons why appraisals of seemingly similar properties may yield different values. First is the actual features / condition of the properties themselves. Beyond being in the same neighborhood and built by the same builder around the same time, the lot size, lot features, lot location (corner, elevated & low traffic lots attract a premium), individual home finishing/features/updates, and the present-day condition of each property can add up to different appraised values. Second is the comparative properties selected in the appraisal of each property and any required adjustments to the comparatives. If the comparative set used in each appraisal is different or the required adjustments not properly done, the resulting appraised values could be different. Third, appraisals are opinions of value, not an exact science and typically offer a valuation range in addition to the estimated value of the specific property. Going through the detail appraisal report for the properties in question should yield some insight into reasons for the different appraisal values.


about 3 weeks ago
Bronze
Mary Alice Davila
about 3 weeks ago
Two different appraisers using different sets of comps. I am just curious if they were the same type of loan? Conventional vs VA or FHA? If they were different loan types they each have their own set of systems and rules to utilize different comps. If you feel one of the appraisals is too low based on your research and comps available you can request for it to be reevaluated. My husband and I had to go through a VA loan protest. In a VA loan process if the home is not going to appraise they will give you a window to submit other comps to possible adjust. My neighbors home appraised higher under a conventional loan because their appraiser used comps that our VA appraiser said he was not allowed to use. Honestly sometimes I am so disappointed and then sometimes I am so relieved and happy with appraisals! I take every cma class I can and I still scratch my head at these appraisals! Good luck and hopefully the lower appraisal did not affect your real estate deal!


about 3 weeks ago
Bronze
Craig Kooken
about 3 weeks ago
There are so many things that an appraiser "can" consider and adjust on the appraisal. The two previous answers are informative, correct, and factors to consider. You didn't mention the square footage of each home. It has been my experience that the larger the home the lower the dollars per square foot its value might be. You also have to consider other factors such as detailed finishes, appliance upgrades, flooring, countertops, backsplashes, hardware packages, AC systems, which aren't all the same. Even though both homes were built by the same builder they could have been upgraded differently at the request of each buyer. There are some builders that will build spec homes and have a basic package on upgrades in each home. If this is the case your question is valid. So many factors that are unknown to give an exact answer in my professional opinion. Hope this helps. Call me if you need additional information. 281-536-4306 or cdkooken@gmail.com


Source:


Experience.

about 3 weeks ago
Diamond
Ryan Kohn
about 3 weeks ago
I agree with all previous answers, but the simplest answer if all items are exactly the same as far as sqft, lot size, year built, bedrooms, bathrooms and condition/upgrades, basically you are looking at 2 identical homes, then your answer will be 2 different appraisers. While appraiser have additional resources and tools than a real estate agent, their opinions of values are still subject to the actual appraiser and you will likely not get identical values for the same house let alone a similar home from another appraiser. With the degree of variation, I would assume that something is different between the 2 homes that is not stated in the statement with your question. You should also keep in mind $/Sqft is simply a tool that will get you in the ball park but the sold price will be more effective when determining value. If you disagree with either appraisal they can be disputed if you feel that the appraiser overlooked anything or other comparables are more reflective of subject.


about 3 weeks ago
Bronze
James De Stefano
about 2 weeks ago
Cristi this is an interesting scenario, and that is a large spread between price/sq foot. I hope it works out in your favor, and it might be as simple as one of the appraisers took lot location/ trees into very strong consideration. Real estate always has surprises in store! Best of luck with the listings!


about 2 weeks ago
Bronze
Paul Chau
about 2 weeks ago
I think the people here have already provided some insight, but my personal opinion is that it depends on the nature and build of the house. Unless they are exactly the same, it's hard to say how the appraisals will turn out. Anyway, I'm sure you can still contend if you have the time and money to do so!


about 2 weeks ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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