[ILuvTO]

Quick question. If someone wanted to get a residential property appraised, who would be the best person to do this? Real Estate agent? Are there people that specialize in appraisals? Typically how much would it cost to get a property appraised?

Thanks in advance.

 

[Eug]

The cost is several hundred bux if you get a real appraiser, who comes into your home, takes all sorts of measurements, checks out the finishes, etc. and compares your home to others in the neighbourhood and recent sales.

A real estate agent just gives his best guess based on recent comparable sales, but if your home is a common layout and size (eg. condo) and not out of the norm for the neighbourhood, then an agent can give a reasonably good estimate.

 

[ILuvTO]

The cost is several hundred bux if you get a real appraiser, who comes into your home, takes all sorts of measurements, checks out the finishes, etc. and compares your home to others in the neighbourhood and recent sales.

A real estate agent just gives his best guess based on recent comparable sales, but if your home is a common layout and size (eg. condo) and not out of the norm for the neighbourhood, then an agent can give a reasonably good estimate.

Thanks, Eug. Assuming the property was old (40 years) and had the original furnace, electrical box, kitchen, bathrooms, etc. Would the appraiser/agent take this into consideration when valuing it?

I would be hesitant to rely on a comparables only appraisal for a property that requires a lot of work.

 

[Eug]

Thanks, Eug. Assuming the property was old (40 years) and had the original furnace, electrical box, kitchen, bathrooms, etc. Would the appraiser/agent take this into consideration when valuing it?

Yes.

Does it really have the original furnace and everything? If so then wow. Is it a teardown?

One thing I'd really be worried about is the wiring. Knob and tube means it may be uninsurable. Or even if you can get insurance for it, it may be so expensive that you'd be better off getting all the wiring replaced. You'd want to do that anyway for safety's sake.

 

[Observer Walt]

You are describing a property which has had little updating (which reflects obsolescence, a form of depreciation). An appraiser definitely should take the items you have mentioned into account. The "cost to cure" (cost to update these specific obsolescent items) should be reflected in an appraisal. Most agents will confirm that the appearance of kitchen and main bathroom, in particular, are heavily emphasizeed when marketing any house. And an "original" furnace, 40 years of age, is well past its "best before" date!

A professional appraiser does not have any "prospective interest" in the property, and should provide a written statement to that effect. A major point this would indicate is that he / she would not be intending to list the property for sale and therefore has no vested interest. A report produced by an agent, who does not have professional appraisal qualifications, might be questioned on that basis. (Full disclosure: I am an appraiser, and do not handle sales.)

I assume from your question that you are discussing a single residence, not a commercial or industrial property, which certainly can be appraised but would involve numerous other concerns.

If you are intending to take the appraisal to a bank for financing purposes, start by asking the bank for two or three names, acceptable to the bank.

Best wishes.

 

[ILuvTO]

Yes.

Does it really have the original furnace and everything? If so then wow. Is it a teardown?

One thing I'd really be worried about is the wiring. Knob and tube means it may be uninsurable. Or even if you can get insurance for it, it may be so expensive that you'd be better off getting all the wiring replaced. You'd want to do that anyway for safety's sake.

Thanks again for the information Eug. Greatly appreciated!!

I am looking at numerous properties, new and old. Some very old that fit the description in my second post.

 

[ILuvTO]

You are describing a property which has had little updating (which reflects obsolescence, a form of depreciation). An appraiser definitely should take the items you have mentioned into account. The "cost to cure" (cost to update these specific obsolescent items) should be reflected in an appraisal. Most agents will confirm that the appearance of kitchen and main bathroom, in particular, are heavily emphasizeed when marketing any house. And an "original" furnace, 40 years of age, is well past its "best before" date!

A professional appraiser does not have any "prospective interest" in the property, and should provide a written statement to that effect. A major point this would indicate is that he / she would not be intending to list the property for sale and therefore has no vested interest. A report produced by an agent, who does not have professional appraisal qualifications, might be questioned on that basis. (Full disclosure: I am an appraiser, and do not handle sales.)

I assume from your question that you are discussing a single residence, not a commercial or industrial property, which certainly can be appraised but would involve numerous other concerns.

If you are intending to take the appraisal to a bank for financing purposes, start by asking the bank for two or three names, acceptable to the bank.

Best wishes.

Thanks for the information/advice, Observer Walt. Most appreciated!