When I studied in
college, my management teacher would constantly remind us the answer
was “It just depends”. This is a very wise statement that
homeowners should take to heart when they go to place their home on
the market, or have it appraised for a loan, or legal situation
(divorce, death in the family, or bankruptcy) There are several key
factors an appraiser must look at for an appraisal. If your home is
the worst in the neighborhood done be surprised if it appraises lower
than the last home that sold. A well educated appraiser will notice
that your driveway is not concrete compared to every other home in
the area, or that your windows are not replaced. (dual pane windows
are now common and standard for most homes.) On that note, so will
your potential buyers.
The market speaks
and the market determines the value of your home. A well educated
and trained appraiser will look at the quality of the construction,
the condition of the property, the location of the property relative
to the neighborhood and the overall market, and marketing factors.
One of my close
friends said to me, I can’t figure out why we pay appraiser’s so
much. He was in and out of my home in 15 minutes. As an appraiser I
replied, appraisers ton of research, have to document everything
they see, must prove how they get to their value, and then file and
store documentation for the next 5 years regarding the appraisal. In
addition, they have to drive in your area, take photos of the other
homes, and possible interview agents or HOA’s. The real question
should be, “are appraisers paid fairly?” Residential Appraisers
have a license which means they are accountable to the State and pay
huge insurance premiums to be bonded for the practice of appraisal.
So going back to
value and the answer is “It just depends”. The value of a home
just depends on many factors. An appraiser is paid to analyze those
factors and provide homeowners a reasonable analysis that will lead
to a “market value”. The market is exactly as stated. The
current market, the market when your parent passed and you inherited
their home, or the date that you and soon-to-be X spouse can agree on
as the date for the analysis and a dissolution of marriage.
I live and work in
the San Fernando Valley (Studio City, Sherman Oaks, North Hollywood,
West Hollywood, Westchester, Encino, Van Nuys, Tarzana, Woodland
Hills, West Hills, Chatsworth, Lake Manor, Simi Valley, Calabasas,
Bell Canyon, Agoura, and Thousand Oaks. I know your neighborhood, I
know the crazy cul-de-sacs, and I know how important value is in delicate situations like a divorce, or for a retrospective appraisal.
Thank you, we'll be in touch!