[AZjonz]

SJ, you look at comps and other data to try to come up with an objective value. How do you account for the subjective value? Or is that accounted for by market forces? Just curious now that it is being discussed.

What exactly are you considering subjective value? We have to get that clear before I even start to try to answer the question.

Let me see…

In Tucson, we have a neighborhood that is called Winterhaven. Middle class houses, but it has a huge neighborhood Christmas spectacular and an eclectic mix of houses with interesting yards and styles. People love the neighborhood, yet, construction-wise, the houses are not anything of special design.

Now they sell for a lot of money, but you get much nicer features on a newer house for cheaper. To me that seems to be a bit subjective. I think Peakland is like this, too.

Now, you can look at comps, # of bedrooms and size, and upgrades and add dollars to that fairly easy. Location and perception add another value that may be more subjective. Or does the demand dictate the price? (I mean I know it does, but how do you say this unique house is highly desirable therefore it has more value than this other house in the same neighborhood that is completely different.)

Another scenario – my parents own a house on 100 acres that has a very unique design and style. No other houses are like it. It was designed by a well-to-do architect in Scottsdale, AZ, so the home is a real gem. How does something like that get valued when there are no other benchmarks available as far as other like houses being sold?

I’m not sure if I’m communicating this clearly enough to ask the right questions about dealing with the “grey” areas of home valuation, but maybe I’ve stumble my way though this enough to give you something to work with.

Gracias

[SuperJon]

In Tucson, we have a neighborhood that is called Winterhaven. Middle class houses, but it has a huge neighborhood Christmas spectacular and an eclectic mix of houses with interesting yards and styles. People love the neighborhood, yet, construction-wise, the houses are not anything of special design.

You go with the neighborhood. There's a section on the URAR form that says "Neighborhood Description." In that, you can describe that the neighborhood is part of a large Christmas festival that adds to the marketability of the homes in the neighborhood. After that, when you're looking for comparables, you try to find as many in the neighborhood as possible.

Another scenario – my parents own a house on 100 acres that has a very unique design and style. No other houses are like it. It was designed by a well-to-do architect in Scottsdale, AZ, so the home is a real gem. How does something like that get valued when there are no other benchmarks available as far as other like houses being sold?

This one's a tough one, especially not knowing the house. A lot of times an appraiser will use the "Cost-Approach" more than the "Sales-Comparison Approach." The "101 version" of how this works is you take how much it would cost to replace or rebuild the house and then take depreciation from it for its effective age. Otherwise, for the Sales Comparison approach, you would likely get houses that are similar in style (call them "modern") and square footage, and in a perfect world land, and then make your adjustments.

[rogers3]

SJ- you seem interested in real estate. Have you been involved in the business?

[SuperJon]

My dad's been a real estate appraiser for going on ten years and I've been one off and on about to start my fourth year. I'm still a trainee in Virginia because I took some time for school instead of getting my test. Once we get our office set up in Lynchburg, I'll have about 8-9 months before I'll be certified. My mom took the classes and passed her test but never started working in it full time. I took my classes my freshman year in college.

[Hold My Own]

I believe Badger's place is on Peakland. That street is basically in a vacuum. There are only so many houses on that street and they will always be in demand.

Best neighborhood in Lynchburg...my great aunt lives there


Also a little unknown fact it was used for several scenes in the new movie Pilgrims Progress who's director is a TRBC member

[AZjonz]

Good stuff SJ. If I ever flip houses in the Burg, can you overinflate the values for me? It would be a real help!

I had other questions that I received opinions on regarding my house I am building next month. I should have pm'd you on those questions before I put in a contract. I feel really good about what I did, but I like a lot professional opinions before I pull the trigger on big dollar items.

All the best with the biz.

[Sly Fox]

You'll have a tough time not seeing a home in Tuscon as a great investment. Even with recessionary concerns, old people will always want to move to the desert and that population continues to boom unaffected by the economy.

[SumItUp]

You'll have a tough time not seeing a home in Tuscon as a great investment. Even with recessionary concerns, old people will always want to move to the desert and that population continues to boom unaffected by the economy.

Desert living will continue to boom as long as there is enough agua for the people.

[badger74]

I'm a state certified general in several states out west. How is VA with reciprocity? I might want to do a little work in my retirement but I have never done single family--just large commercial and investment/market analysis.

[SuperJon]

I'm a state certified general in several states out west. How is VA with reciprocity? I might want to do a little work in my retirement but I have never done single family--just large commercial and investment/market analysis.

All depends on the requirement from the state you're coming from. I know my dad's NC certification reciprocated to VA but my VA won't to NC. I'll have to test in NC if I get certified there.