Appraisal transparency

Ever wondered how appraisers determine how much your property is worth? How zestimate and Redfin compare? Well I’ll let you know how my property was appraised for in Texas and how it compared to Redfin and Zillow estimates.

Subject property info: 709 list price, 750 sell price, 2500 square feet, 9500 lot size, pool, 2 car garage, 3Bdr, 3FB, 0HB Dense suburb. Over improvements.

Appraised value: 670k Zestimate: 742k Redfin: 727k

Now, how do appraisers appraise homes? Appraisers usually take several comps, or similar properties near your home, that share similar qualities to your home then adjust their value on certain features. The adjustments are to make your home and the comp similar so you are comparing apples to apples. For example, a 4000 square foot comparable home will probably cost more than your 3000 square foot home so the appraiser will take the sell price of the 4000 square foot home and subtract an amount from it to adjust it to a 3000 square foot home.

Our appraiser took 11 comps, which is way more than most. The appraiser probably looked at 11 comps to “bracket” our home – or in other words – find enough homes that share similar features. 3 of them were on contract or active, the rest were sold. All the comps were sold or listed within a calendar year with the oldest listing posted July 21. Usually they try to get the most recent listings but our appraiser is a different breed. All the comps were within 1 mile.

So what did the appraiser look at to adjust the value of the comps? Here is what our appraiser looked at and how he adjusted the feature:

square footage or GLA $100/sqft … used to be 70 in my market lot size $2/sqft year built 0.5%/year age on market 6% annual appreciation rate or 0.5%/month (e.g. a property sold last month would be 0.5% more expensive today)… lol the appreciation in my market is way more than that full bath 7k half bath 3.5k pool 35k (lol pools are way more expensive than that to build now) garage 7k

The appraiser didn’t adjust for property quality or style or other features. Our appraiser, and other appraisers we talked to in our area, don’t put much emphasis on much of anything outside those factors. A few appraisers we spoke to even agreed that we have over improvements but the fact of the matter is that the most influential or weighted feature is square footage. FYI Bedrooms don’t get adjusted because it’s value is included in the square footage adjustment. So if you have a 5 BDRM home don’t think it’ll get you more than if you had a 4 BDRM home. I currently am disputing our appraisal but don’t have much hope it’ll change.

Hope this thread can increase transparency and encourage others to share how their property was appraised! Also, please don’t use Zillow or Redfin as a barometer for what your home will be appraised for.

submitted by /u/HungryDinoCat
[link] [comments]

Ever wondered how appraisers determine how much your property is worth? How zestimate and Redfin compare? Well I’ll let you know how my property was appraised for in Texas and how it compared to Redfin and Zillow estimates. Subject property info: 709 list price, 750 sell price, 2500 square feet, 9500 lot size, pool, 2 car garage, 3Bdr, 3FB, 0HB Dense suburb. Over improvements. Appraised value: 670k Zestimate: 742k Redfin: 727k Now, how do appraisers appraise homes? Appraisers usually take several comps, or similar properties near your home, that share similar qualities to your home then adjust their value on certain features. The adjustments are to make your home and the comp similar so you are comparing apples to apples. For example, a 4000 square foot comparable home will probably cost more than your 3000 square foot home so the appraiser will take the sell price of the 4000 square foot home and subtract an amount from it to adjust it to a 3000 square foot home. Our appraiser took 11 comps, which is way more than most. The appraiser probably looked at 11 comps to “bracket” our home – or in other words – find enough homes that share similar features. 3 of them were on contract or active, the rest were sold. All the comps were sold or listed within a calendar year with the oldest listing posted July 21. Usually they try to get the most recent listings but our appraiser is a different breed. All the comps were within 1 mile. So what did the appraiser look at to adjust the value of the comps? Here is what our appraiser looked at and how he adjusted the feature: square footage or GLA $100/sqft … used to be 70 in my market lot size $2/sqft year built 0.5%/year age on market 6% annual appreciation rate or 0.5%/month (e.g. a property sold last month would be 0.5% more expensive today)… lol the appreciation in my market is way more than that full bath 7k half bath 3.5k pool 35k (lol pools are way more expensive than that to build now) garage 7k The appraiser didn’t adjust for property quality or style or other features. Our appraiser, and other appraisers we talked to in our area, don’t put much emphasis on much of anything outside those factors. A few appraisers we spoke to even agreed that we have over improvements but the fact of the matter is that the most influential or weighted feature is square footage. FYI Bedrooms don’t get adjusted because it’s value is included in the square footage adjustment. So if you have a 5 BDRM home don’t think it’ll get you more than if you had a 4 BDRM home. I currently am disputing our appraisal but don’t have much hope it’ll change. Hope this thread can increase transparency and encourage others to share how their property was appraised! Also, please don’t use Zillow or Redfin as a barometer for what your home will be appraised for. submitted by /u/HungryDinoCat [link] [comments]

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