How Do Appraisers Value Garage Conversions?
The question of "what impact will a garage conversion have on my home's value" comes up all the time. Converting that garage into a studio, hobby room, game room or extra bedroom CAN be a great way to add living area to your home. However, an increase in living space doesn't always mean an increase in value. There are numerous factors which must be considered when estimated the impact that a converted garage will have on your home's value. Most important of these are whether or not the conversion was performed professionally, is permissible for the neighborhood, and whether or not these type of conversions are typical for the market area.
How Do Appraisers Choose Comparable Sales?
One of the most misunderstood aspects of real estate appraising is how comparable sales are chosen and adjusted. There are certain guidelines that appraisers follow as well as lender imposed restrictions that require the use of comparables that fit specific criteria. Unfortunately, many times these guidelines can results in less accurate conclusions due to the limited data. In the case of non-lender or private appraisal assignments, many appraisers still cling to these guideline even though they are not being imposed - they simply don't understand how to think outside the box. In this article we take a look at some of those issues and how they affect comp selection.