Modernization of the appraisal industry is underway.
.Our clients have so much to gain with these advances! Utilizing technology and data provides the most
We’ve made significant investments in technology and data over the past several years. We plan to continue these into the future!
Follow along to find out more on what sets Acadiana Appraisals & Consulting apart! We want YOU
to have confidence in the valuation process!
#appraiser #acadiana #appraisals #homevalues #realestate #louisiana
Appraisers make adjustments to comparables to account for differences between properties. Adjustments reflect the incremental value buyers are willing to pay for specific features.
📣📣📣Adjustments are MARKET SPECIFIC!!! There is NOT a one-size fits all dollar value for certain features. Also, keep in mind a “market” is not only defined by location. 📣📣📣
The dollar amount is based on the value of that feature to the buyers in that specific market. Some markets value certain features more than other markets.
Also, the cost of the feature often does not equal the value of the adjustment. For example, a pool may cost $75k but the value added may be much less.
⚠Be cautious of cheat sheets that specific values for certain features. Appraisers very carefully analyze each market to determine the impact of specific features. ⚠
In most situations, not really! Dirty dishes in the sink, toys in the living room, clothes on the floor are part of daily life for most of us. Appraisers are trained to look past these types of personal property. Their focus is on the permanent fixtures such as walls, floors, cabinets, etc.
In short, prepare your property the way that makes you feel comfortable but don’t add more stress to your life trying to make sure your house is “magazine” ready just for the appraiser’s sake!
Appraisers use bracketing to select comps with features and characteristics that are both inferior and superior to those of the subject property.
The goal is to attempt to bracket all features that require adjustments. Features may include items such as condition, lot size, living area, location, view, or amenities such a pool or garage.
In a perfect world, each property would indicate the same value after all adjustments are made. But…real estate is not perfect, and a range of adjusted values is typically formed.
Most lenders require the opinion of value to be bracketed by the sales prices/adjusted sales prices of the comparables.
Bracketing (per FHA)
Definition: Bracketing refers to selecting comparable properties with features that are superior to and inferior to the subject features.
Standard: Comparable properties must be selected based on the principle of substitution, and the analysis will reveal the relevance of that data. Comparable properties should not be chosen only because their prices bracket a desired or estimated value.
Required Analysis and Reporting: In analyzing the comparable pool to determine the best comparable sales to display and compare in the adjustment grid, the Appraiser must use Bracketing techniques when possible and appropriate.
Bracketing (per the Dictionary of Real Estate Appraisal, 7th Edition)
- In a quantitative analysis, a process in which an appraiser chooses comparable sales or listings that display both superior and inferior elements of comparison to the subject property.
- A process in which an appraiser determines a probable range of values for a property by applying qualitative techniques of comparative analysis to a group of comparable sales. The array of comparable sales may be divided into 3 groups – those superior to the subject property, those similar to the subject property, and those inferior to the subject property. The adjusted sale prices reflected by the sales requiring downward adjustment and those requiring upward adjustment refine the probable range of values for the subject property and identify a value bracket in which the final value opinion will fall.
Home valuation tools like these simply use algorithms and generic data to “guess” your home’s value.
Automated systems do a poor job of valuing qualities and characteristics that are intangible. Fresh paint, remodeling efforts, quality building materials, etc. are most likely not considered. On the flip side, structural issues, deferred maintenance, and other worrisome issues won’t be reflected.
In fact, Zillow exited the home-selling business in 2021 after citing their own issues accurately predicting home prices. 🤔 https://www.entrepreneur.com/article/395528
Check out this article for more insight on the topic: https://www.fool.com/the-ascent/mortgages/articles/why-online-home-valuations-are-often-wrong/
The real estate market is constantly changing. If you are thinking about listing your property for sale, purchasing a property, or going through a divorce/estate settlement, it is important to have the most up-to-date information. Here are a few graphs and charts showing how the Saint Martin Parish real estate market has been performing (Look at the difference between 2020 and 2021!!!!).
New Saint Martin Parish Real Estate Market Update. Click the link to interactive analysis. https://public.tableau.com/views/St_MartinParishTrendsFeburary2022/Story1?:language=en-US&publish=yes&:display_count=n&:origin=viz_share_link
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