05/02/2025
As an appraiser, my job is not to determine a property's value. This may sound strange, and if I do not determine the value of a property, then what am I doing?
Real estate appraisers do not "come up with a value." We are really just reporters. What appraiser would have determined values increasing significantly during a pandemic? Who would have predicted that?
Our job is to report what the market is doing. The market is not a group of appraisers getting together to discuss what adjustments should be made for a garage, or how much an adjustment should be made for a bathroom, or living area, or the number of acres of land. No, the market is you, the buyers!
Sometimes I think it is funny when a buyer will ask me what an inground pool, or an accessory dwelling unit, is worth. I don't know! With some research, in a particular market, I can figure out what they are worth. Some buyers will not buy a house with an inground pool, so the pool is worth less than $0, because they would have to pay money to remove the pool, or fill it in. Other buyers are looking to buy a house with an inground pool. Or their family situation requires the need for an in-law apartment.
Appraisers are not going to tell anyone what they should spend on a feature. In a hot market where there is little inventory, and a large pool of buyers, I have seen completely renovated houses sell for a similar price compared to a very dated house, all other factors being very similar (age, size, style, location, etc). Wouldn't everyone assume that a renovated house will sell for more money than a cosmetically dated one? I sure would.
The market, the pool of buyers, their motivation, is what sets the value. I just report it!