March 2014

Updated Kitchens

What will my home be worth if I remodel my X!%&#%? Many homeowners are interested in an appraisal of their property “as is” vs. “as improved” …that would translate to what will be the value of my home if I remodel my kitchen, bathrooms, add a swimming pool etc. This can be a difficult question to answer. The answer partly depends on where your home is located. A swimming pool in Heritage Springs…a community with a community pool is likely to be valued very differently by a consumer than in neighboring communities without such community features. Upgrades like granite countertops in a community like Seven Springs Homes could be considered an over improvement if it is not typical of the other homes. Upgraded kitchens and bathrooms in the various Trinity neighborhoods may be valued on a dollar for dollar basis.

The rule of thumb for remodeling is to do what you like. Much of the value is likely to be your enjoyment of the features. If you are looking to solely increase the appraised value of the property remember that properly finished increases in square footage are a good bang for your buck, as long as you don’t over-do it. Remodeling should be kept within the same quality as the rest of the structure and neighborhood. Renovations that make your property the biggest and best in the neighborhood are generally not a good idea. The best way to determine what efforts will bring you the most return is to order a residential appraisal that will value your property as is with similar sales vs. a valuation of sales of properties with the renovations or remodeling you are contemplating.

For more appraisal info visit: http://PriorityAppraisalandMortgageServicesInc.appraiserxsites.com or call Shari Peterman directly at 727-505-6706. I look forward to hearing from you.

Estate Appraisals

Sinkhole Appraisals Dunedin, Tarpon Springs, Port Richey, Clearwater — Estate

Estate Appraisals

An Estate Attorney recently asked me if it is always necessary for his clients to secure estate appraisals when settling an estate. He said that many of his clients considering using public sources like the County Property Appraisers site, Trulia or Zillow. Of course, he always recommends a complete appraisal in order to make the most informed and legally abiding decision, but he wanted to know what I, as an Appraiser thought.

There are several things that a consumer should know about using one of these sources to determine Market Value. In regard to the County Property Appraisers site, regardless of if it is Pasco, Pinellas, Hillsborough, Hernando or some other county they all use the same technique. That technique is mass appraisal which is very different than the approaches used by Independent Residential Appraisers. Mass appraising employs data from a large number of sales. It does not take into consideration the intricacies of your property especially if they are unknown. One example, unpermitted interior renovations. The other factor is that there is a lag time. Therefore, in an increasing market, you will be shortchanging yourself using this method.

Zillow

Sites such as Trulia or Zillow simply pull all the nearby sales and average the price per square foot. There is no consideration for an additional bedroom or bathroom, view, quality, features like swimming pools or remodeling efforts. If your property is the “ugly duckling” in the neighborhood with a nearby superior neighborhood it may be over-valued. Superior construction compared to nearby sales could result in under-value.

One more important thing to consider is the Short Sale and REO/Foreclosure properties that have recently sold. These sales are included in these types of mass appraising techniques which will typically drag down the value of non-distressed sales. My answer to the question is almost always yes, order an appraisal. Quite often the appraisal more than pays for itself.

For more appraisal info visit: FEMA Compliant Actual Cash Value or http://linkedin.com/in/shari-peterman-asa-ifa-2876795 Appraisals or call Shari Peterman directly at 727-505-6706. I look forward to hearing from you.

Sinkhole Appraisal

Sinkhole or settlement what does an appraiser look for? We have all heard the story of the man who was swallowed in his bed by a sinkhole that opened up under his house. Most of us living in the Tampa Bay area have not seen the earth open up and devour a house but many, especially in Pasco County have heard about friends and neighbors who have reported a sinkhole.

The first thing that is important for a homeowner or especially a home buyer to know is that an Appraiser is not a home inspector and an appraisal is not a home inspection. Appraisers are not trained to determine if you have sinkhole activity. That diagnosis takes specialized tests and specialized knowledge. Appraisers are trained to spot readily observable anomalies that could be an indication of a problem. Appraisers are not required to move furniture, dig in the ground or peer under your flooring so spotting a problem may not be easy.

Appraisers in the course of the appraisal inspection do look for suspicious exterior cracks. These cracks could be along the foundation or along the outline of the blocks in concrete block construction. Often minor cracks are typical and nothing to be concerned about. Excessive cracking or particularly cracks that are wide enough to insert a coin in the crevice are a concern. Another concern is a sloping in the floor. If an appraiser notices an incline in the flooring or a shift from one area to another, this could be an indication of settlement, earth- movement, expansive clay or sinkhole activity.

Once an appraiser spots an area of concern the appraiser will note the issue in the report. This should be observed by your lender (if you are working with one) who should inform you and provide you a copy of the appraisal. If you are ordering an appraisal personally, you should read the report thoroughly. In addition a good appraiser in this circumstance would call your attention to the matter. The appraiser will then recommend that the appropriate inspection be ordered so that you can be certain as to the situation and necessary steps to take if any.

For more appraisal info visit: http://PriorityAppraisalandMortgageServicesInc.appraiserxsites.com or call Shari Peterman directly at 727-505-6706. I look forward to hearing from you.

Sinkhole Appraisal