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.
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If the appraisal is being completed for a lending transaction, keep in mind that photos of the interior will typically be included within the appraisal report provided to the bank or mortgage company. So, it may be a good idea to tuck away anything you wouldn’t want showing up in a picture.
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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!
Home valuation tools like these simply use algorithms and generic data to “guess” your home’s value.
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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.
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!!!!).
Each appraisal is unique, but the overall general process tends to follow three general steps. Ultimately, the final opinion of value is what many people want to know, but the process to reach that final value is detailed and thorough. Here’s a brief overview of those three steps:
Site Visit The site visit occurs when the appraiser visits the property. It is also commonly referred to as an appraisal inspection. Once we receive a request for an appraisal, our office will reach out to the homeowner or real estate agent to schedule a day and time for the appointment. The appraiser will perform a variety of tasks during the appointment. Some of the tasks will include measuring the exterior, making visual observations of the exterior and interior, and taking photographs of all the interior rooms. Appointments typically last 30-45 minutes but can be longer for larger and/or more complex properties.
Offsite Research and Report Writing The offsite research is typically the most time intensive portion of the appraisal process. The amount and level of research varies by property, but the appraiser spends several hours at the computer working on each property. The subject property is closely examined, the market is analyzed, and recent sales are studied. The data is collected and summarized in an appraisal report format.
Arriving at a Value Conclusion The appraiser arrives at the final value conclusion after all research and analysis has been completed. The opinion of value is often referred to as the appraised value. This value can be expressed as a single value or a range of values. It is documented within the final appraisal report.
To understand more about the appraisal process or how we may be able to assist you with your valuation needs, please reach out to us at 337-714-8378 or AcadianaAppraisals@gmail.com. We’re looking forward to hearing from you!
Sale prices and sale volumes are continuing to increase.
Days on the market are showing significant declines.
2021 has started strong.
As most of you probably already know, the Lafayette Parish residential real estate market continues to remain strong. Homes are moving quick, and sales prices are continuing to creep up. 2020 proved to be a strong year for this market despite the global pandemic, but the data trends for 2021 are setting the stage for what may look like yet another stellar year.
Data gathered from the Realtors Association of Acadiana’s database is summarized in the charts and graphs below. For purposes of this analysis, detached single-family housing data in Lafayette Parish through March 31, 2021 is presented. The commentary is focused on the last 12 months while highlighting the most recent quarter and month.
The metrics for the most recent 12 months are continuing to show favorable changes. Sale prices are steadily increasing. The number of closed sales increased by 640, or almost 20%, as compared to April 2019 through March 2020. The data strongly supports that houses are moving quickly with the average days on the market declining from around 3 ½ months down to about 2 ½ months. There was also a slight uptick in the average square footage.
The Monthly Price Metrics chart provides a good visual of the sales price statistics over time. It is clear the last 12 months have been on an upward trajectory. The increases can be attributed to a couple of factors. First, the limited inventory within Lafayette Parish is creating a low supply and high demand dynamic that drives up prices. Currently, there is approximately a month and a half of inventory within the market as compared to three to six months during 2016 through early 2020. Second, increases in construction costs have impacted values. Over the last nine months, costs have increased dramatically and have driven up the cost to build a new house. The differential between existing versus new home prices has widened, and as a result, the demand within the resale market has increased.
Looking more closely at 2021, the number of sales in the first quarter are 10% higher than January through March 2020. Even going back to 2017, the graphic highlights how well the start of 2021 was in comparison to recent years.
