I know everyone loves to throw their hands up at appraisals. But this reeks of incompetence to me. I know list price is not a factor in this at all, but a little background info: We listed at $320K and received 4 offers, accepting one at $335K with a bit of cash for any appraisal gap. The appraisal came in at $305K.
See the appraisal here.
On the surface, this appears to be a reasonable appraisal.
However, it gives absolutely zero consideration to any of the many upgrades we have put in the home in just the last 4 years: completely gutted and renovated both bathrooms with significant upgrades to finishes, new ceramic tile or laminate flooring throughout, various kitchen upgrades (tile backsplash, new appliances, cabinet hardware, cabinet crown molding, and new sink hardware), wainscoting in formal dining room and breakfast rooms, custom built floor-to-ceiling built-in bookshelves with drawers made of solid wood construction, crown molding throughout, upgraded lighting fixtures throughout, replaced sliding glass door with double french doors with integrated blinds, glass insert in front door with matching sidelight. This isn’t even the complete list.
We knew when we did these upgrades that we were probably exceeding the return we would get for them, but we were okay with that. However, this appraiser actually states “No updates in the prior 15 years”. I’m okay with the C3 condition rating, but how can you state that?
But don’t take my word for it. Just look at this….
My home’s listing is here: My home
Here’s the listing for his first comp sale: Comp Sale #1
Now, Comp Sale #1 just closed in the same month as the appraisal and is only .49 miles away with only a 60sf difference in livable space. This is a good comp. It sold at $157.97sf. Our appraisal came in at $155.14sf. Take a look at the pics. Can anyone here honestly tell me that they believe it’s reasonable that this home is worth more than mine on a sqft basis?
I could provide more examples with the other two comps, but this is the most egregious and I don’t want to make this post any longer than it needs to be.
But here’s a question for anyone that knows – How should home upgrades such as mine be factored into the value of a home? In the value adjustments section of the sales comp apprach, there is a line for “Add’l Amenities”. My appraiser lists none across the board. But should he have outlined some of the larger upgrades in my home (or the comps)?
My agent is going to dispute this, but I understand the chance of getting anything changed is close to zero. Sadly for the buyer, he will lose his deposit and the home. For us, we will have to start anew.