Home Buying in Laurel>Question Details

C, Home Buyer in Maryland

We are looking at a complete renovation (very well done by the way) that has an historical designation. .

Asked by C, Maryland Sat Nov 1, 2008

My questions are these -

1) Historic designation - does it or does it NOT affect appraisal value. If it does - in what way?

2) this property is very hard to comp - it is on a street with a mix of properties (TH,duplex,SFH) and some commercial prop as well. Our realtor has pulled comps from as far as 3 miles out but very little has sold in the last 6 months. And while there are some sold SFH, none have been restored from a duplex to SFH like this one.

3) what happens if it doesn't appraise for agreed upon price? this is the first resale we have bought!

Help the community by answering this question:

Answers

2
Hi, Chris has answered your other questions as I would have...just one other thing to be certain you are aware of ...depending on the designation there could be an historical easement on the property from the state. Even if there is not one, most historical homes require some type of approval before you can make any updates/changes/repairs...to protect the historical nature of the property. Just be certain you know what you would need to do.

Good luck
0 votes Thank Flag Link Mon Nov 3, 2008
C,

The "historic" designation will have a positive effect on the value of the home making it "rare'.
Due to that fact the comps will be more difficult to acquire within in the typical local comparable neighborhood. The appraiser will most likely take this into consideration and find "like properties" from a broader area and make the necessary adjustments for neighborhood variances.
What happens if the property does not appraise for the selling price depends on the contract. If your realtor has included an appraisal contingency, or in the case of a VA, or FHA loan, the home must appraise for the sales price or the price is typically renegotiated.
0 votes Thank Flag Link Sat Nov 1, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer