Jeff Jarnot, Both Buyer and Seller in Brownstown Township,...

First- I LOVE your site. My agent posted my property here and I've used it for more market research than I could have ever hoped for. Nobody

Asked by Jeff Jarnot, Brownstown Township, MI Fri May 28, 2010

beats you IMHO. In a pickle here. I have a bit of a lemon sit-rep. It's a 5Bdroom house in a 3 to 4 bedroom city/zip brownstown/48134 Sq Ft. 2238. A Sale will be limited by apprasied value. (so I am told) MyQ to You folks: How will it be appraised or what formulas would be used by an apprasier. Looking for the true apprasial math and your thoughts. When I sort a list of over 40 properties I am the only 5Bd room!! No others. For sale or Sold. I'm coming in at 160 @ 72 a SqFt. And I wonder if some appraiser will see the 3/4 rooms in the sub and whack me w/ a low apprasial. Thanks for giving me the chance to review and ask you. contact me directly if needed at hubbleguy@yahoo.com

http://www.trulia.com/property/3010130279-22106-Knollwood-Dr…

SORT THIS BY PRICE & BY # of Room.
http://www.trulia.com/home_values/for_sale/MI/Brownstown/481…

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Answers

2
Hi Jeff,

Yes, your sales price will be limited by an appraisal. I am sure most of the Realtors here have seen two appraisals come in at very different numbers on the same house. It is the buyer's bank that is going to pick the appraiser, so you won't really know what it is going to appraise for until that appraisal takes place.

As Scott said, your home will be comped with similarly sized homes nearby. The solds are what really matters, not the on market, in determining value. If your 5th bedroom is created by a strange or obsolete floorplan, then it won't be much of a benefit. Yes, you will be impacted by the 4 bedroom sales in the sub. If there are no other 5 BR sales, then that is likely what the appraiser will use, especially if the houses are similar in size.

The appraiser can go outside your sub to find comps. They'll usually stay as close as they can.

I am sure you have heard the adage "don't buy the nicest home on the block." You might experience why this is true, unfortunately.

Your agent can help you by staiying on top of the solds and and making sure an appariser and a potential buyer is aware of the comps that support your pricing.
0 votes Thank Flag Link Fri May 28, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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First of all you have a beautiful home. As far as your question an expereinced appraisal bases the appraisal on square footage, condition and area. If similar square foot homes are only 3 0r 4 and you have a true 5 br above ground, that appraisal will add for extras, amenities or upgrades your house has over the comparables.

Most commonly used is teh sales approach where they will find the 3 most similar sales wqithin the last 6 months and the 3 most similar homes currently listed in your area. Unless there are absolutely no comps, the price per square foot method is considered but not commonly used in appraising residential homes.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri May 28, 2010
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