Charlotte Appraiser Explains the Market

Real estate appraisers Charlotte NC use recent sold comparable properties and make adjustments to those homes to make them similar to the subject property.

Here is a preferred list of residential appraisers

1. Valuation Experts, Inc.
www.valuation-expert.com 704-989-7283


1. Real Estate Appraisal - Introduction

The first step that the appraiser takes is to determine and discuss the scope of work with the potential client. The scope of work may include the appraiser measuring the property, or may not include measuring of the property. Other issues concerning the scope of work are: how much investigated work will the appraiser do, and to what extent? A appraisal can be done on any property type, whether it's a 1900's victorian, to a new home in a cookie cutter subdivision.

Next the Charlotte Appraiser will determine who the client is, and the intended use of the appraisal, and the intended user of the appraisal. The appraiser will have a contract for the client, and therefore will and can only discuss the appraisal results only to the client. If at the beginning of the appraisal process, the client instructed the appraiser to include other intended users, then and only then the appraiser can discuss with other individuals the appraisals results.

2. Why get a Real Estate Appraisal and What are the Benefits?

When real estate is appreciating, not much concern to the value of the property is taken into consideration. In these markets, buyers usually buy using more emotions, and wants, and they are not really concerned about the value of the property. Now that the markets are soft, and prices are declining in some areas, a real estate appraisal may help you from making a big financial mistake. A big misconception is that a home appraisal for a lending client, is for the benefit of the home buyer. This is simply untrue. The lender orders the appraisal for their sole benefit, not the buyer. The lender wants to know what the home is worth, so they can know how much to lend on, and determine the appropriate LTV.

What are Some of the Items that Add Value?

A Charlotte real estate appraiser will look at the entire structure, and property improvements to see if any contributory value is noted. For example, in some new subdivisions, there will be a 3,000 square foot home for $400,000, and another 3,000 square foot home for $300,000, and some home buyers and real estate agents do not understand why this can be. Real estate agents and buyers both like using the cost per square foot theory to compare and determine if the property that they are considering buying is within "ball park" range. The first home was sold for $133.00 a square foot, and the second home sold for $100.00 a square foot. By this example, one can easily see why one should not use the square foot method for determining property values. It is certainly OK to use this method as a starting point, and nothing more.

So why the huge difference in values for homes with the same square footage?

Homes in Charlotte vary in design, appeal, and quality of construction. These are the main culprits that make homes differ in price. In new construction subdivisions, prices will vary mainly do the cost to construction of the home, and the amount of upgrades of the home. The cost of construction includes the pitch of the roof; the amount of corners and out sets of the home; brick veneer front, part or whole; exterior detail, and trim work; height of ceilings, number of rooms, and bathrooms. Next, is the amount of interior upgrades. A home buyer must be careful when choosing interior upgrades. Interior upgrades can add value to your home or detract value from the home. It is also important to realize the price point of other homes in the neighborhood, and determine if the upgrades will support and make sense at the price point of the property that you are considering buying.

For example, if the median price range for the neighborhood is $200,000, it would probably not be benificail to add travertine tile in the kitchen, and all baths, and exotic imported Italian marble to the counter tops. Although it may be benifiacil to upgrade granite counters in the kitchen, and to add hardwood floors to the lower living area. The homeowner should take into consideration the price point of the neighborhood, consider the desirability of the area, and lastly make good upgrade selections

1. A appraiser Charlotte NC will consider the intended user and use.
2. A real estate appraiser Charlotte NC will discuss the scope of work with the potential clients.
3. Appraisers Charlotte NC will make a condition rating of the property that is being appraised.
4. An appraiser Charlotte NC will choose comparable sales that are substitute properties for the home being appraised.
5. Appraisers Charlotte North Carolina will take into consideration the quality of construction, condition, location, and size of both the property that is being appraised, and the selected sales.

To be or not to be... A bedroom?

I get several calls each month from real estate agents, homeowners, and even other appraisers asking what makes a bedroom a bedroom.

So what makes a bedroom?
The best answer that I can give individuals is to go to your market and research. Every market is different, and each sub-market may or may not recognize that space as a bedroom.

The International Code Council (the source for State Building Codes) definition of a habitable space is a building for living, sleeping, eating, or cooking. Bathrooms, closets, halls, storage, or utility spaces and similar spaces are not considered habitable living spaces. Their definition of a bedroom is a room designed as a sleeping or bedroom on the plans. This definition was amended by North Carolina, and may not be adopted in your area.

Furthermore, all habitable rooms shall be provided with natural ventilation through windows, doors, or other approved openings to the outdoor air.

When the winter design temperatures is below 60 degrees F., every dwelling unit shall be provided with heating facilities capable of maintaining a minimum room temperature of 68 degrees F. in all habitable rooms at the design temperature. The installation of one or more portable heaters shall not used to achieve compliance with this section.

So here are some of my golden rules for labeling bedrooms:

• Is the space big enough for a bedroom? Code calls for a room to be at least 70 sq ft. and not be less than 7 feet in any horizontal direction. Many suggest for a single bed to fit comfortably, the room should measure at least 8x10 feet.
• Is there a closet? The Code does not count closets as habitable space. Since bedroom closets were not a common design in older homes, do not disqualify rooms in these homes which do not contain closets if they were clearly intended to be used as bedrooms.
• How many bathrooms are in the home? If you have a home that has three bedrooms, and one bath, and the owner insists that you count that other room as a bedroom, I would go to the market and compare what is typical and accepted.
• The bedroom does not need a window, as noted above. Although, the space must have a glazed area to provide natural ventilation to the outdoor i.e. a door to the outside would be okay. So, it must either have a window or a door.
• Asked yourself how the market would perceive this space. Is it on the third floor with no water closets or bathrooms. Is the space heated with a permanent source? Is the ceiling height at least 7 feet? Does it meet current governmental regulations?
• What was the space originally intended for?

So is it a bedroom or just another room? Go to the market, and research. Remember to compare apples to apples. Do not use a 1960s year built, to derive market acceptance to a 2000 year built home.

For more information go to http://www.valuation-expert.com/ and click on the frequently asked questions tab. Valuation Experts is a real estate appraisal firm located in Charlotte, North Carolina.