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What Improvements Are Gonna Keep Value in My Home? (Episode 39) S3 E9
You can watch this episode on Youtube.com: https://youtu.be/vUKESItdiR0
What improvements actually ADD value to your home? We talk with Joel Frost, expert Utah appraiser, about what improvements add value or reduce value.
0:59 - Joel's credibility - He seen 16,000 homes. Today we're talking about improvements, and what you get out of them.
1:49 - Specialty kitchen with $50,000 Hibachi grill upgrades. How much value did it add in an appraisal? None. It actually REDUCED value! A typical homeowner won't use it - it's not an upgrade for the average buyer. The underwriter is going to want a comp showing value.
4:25 - Which improvements give you the most bang for the buck? Fannie Mae and Freddie Mac track kitchens and bathrooms. Kitchens and bathrooms get you money back the easiest.
5:19 - What about quality of improvements? Granite counter tops vs Formica, for example. Q1 - Q6, highest quality is Q1. There are a lot of Q3 and Q4. Condition is ranked the same way (C1 - C6). You can have a high quality finish Q1 at C6 condition.
6:31 - So, should I clean my house for the appraiser? Appraisers should be able to "see through" the clutter, but it can't hurt.
7:22 - If you're planning a remodel, talk to an appraiser or experienced agent. Overbuilding is a serious issue that kills improvement value. It can leave you without comps. Is it amazing? Yes. Will it recover value? Unlikely.
8:40 - What's a Q1? A Mansion, Parade of Homes house. Built to the nines. Comps will include only high-end (Q1) homes.
10:30 - Appraisers are limited to a very transient inventory.
10:59 - What are appraisers doing to account for this "Seller's Market?" Appraisers should be making "market time adjustments". How do you know you have a good appraiser? Look at their market time adjustments. You CAN contest an appraiser's opinion of value. Appraisers pull data from the MLS, just like agents. A good agent can give you statistics and information. Reatlors are NOT appraisers, but they can do some good work based on information. Make sure your lender has a good pool of appraisers.
17:30 - What did we learn today?
19:27 - Bloopers
*No hibachi grills were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Joel Frost is an Appraiser with
ExcelAppraise
Reach him on Twitter @JustAskJoel
https://twitter.com/justaskjoel
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
View all episodes
By Tyler Cazier, Aric Wiszt, & Jason ChristiansenYou can watch this episode on Youtube.com: https://youtu.be/vUKESItdiR0
What improvements actually ADD value to your home? We talk with Joel Frost, expert Utah appraiser, about what improvements add value or reduce value.
0:59 - Joel's credibility - He seen 16,000 homes. Today we're talking about improvements, and what you get out of them.
1:49 - Specialty kitchen with $50,000 Hibachi grill upgrades. How much value did it add in an appraisal? None. It actually REDUCED value! A typical homeowner won't use it - it's not an upgrade for the average buyer. The underwriter is going to want a comp showing value.
4:25 - Which improvements give you the most bang for the buck? Fannie Mae and Freddie Mac track kitchens and bathrooms. Kitchens and bathrooms get you money back the easiest.
5:19 - What about quality of improvements? Granite counter tops vs Formica, for example. Q1 - Q6, highest quality is Q1. There are a lot of Q3 and Q4. Condition is ranked the same way (C1 - C6). You can have a high quality finish Q1 at C6 condition.
6:31 - So, should I clean my house for the appraiser? Appraisers should be able to "see through" the clutter, but it can't hurt.
7:22 - If you're planning a remodel, talk to an appraiser or experienced agent. Overbuilding is a serious issue that kills improvement value. It can leave you without comps. Is it amazing? Yes. Will it recover value? Unlikely.
8:40 - What's a Q1? A Mansion, Parade of Homes house. Built to the nines. Comps will include only high-end (Q1) homes.
10:30 - Appraisers are limited to a very transient inventory.
10:59 - What are appraisers doing to account for this "Seller's Market?" Appraisers should be making "market time adjustments". How do you know you have a good appraiser? Look at their market time adjustments. You CAN contest an appraiser's opinion of value. Appraisers pull data from the MLS, just like agents. A good agent can give you statistics and information. Reatlors are NOT appraisers, but they can do some good work based on information. Make sure your lender has a good pool of appraisers.
17:30 - What did we learn today?
19:27 - Bloopers
*No hibachi grills were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Joel Frost is an Appraiser with
ExcelAppraise
Reach him on Twitter @JustAskJoel
https://twitter.com/justaskjoel
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.