As a real estate appraisal provider, it can be hard to get into the home owner’s perspective. It seems that what is important to them may not directly translate into value. We often run into this problem, where an owner pours thousands of dollars into a project that doesn’t increase the home’s value much at all, and owners tend to not be very happy about this.
Our role as appraisers is to figure out what someone from the general population would pay for a certain amenity or addition. Sometimes it’s interesting to get into the shoes of an owner vs just being an appraiser. A problem recently occurred at my home that I needed to get fixed. It was interesting making decisions as a real estate appraiser by day and then a husband at night.
Our master shower went bad and had an issue with the drain pan, the damage from which necessitated an almost entire bathroom remodel. We got the payout from the insurance claim, and now we have decisions to make. There are things we want to do in that room that will make no difference in market value to an appraiser, but make a big difference to us as home owners.
We definitely don’t plan to be in this home forever. It’s likely we’ll downsize as the kids leave the nest and it will just be my wife and I. Even though these things won’t add value, I’m a home owner, and there are things I want as a home owner.
I understand better as an appraiser why some home owners make sure to point out things to us that won’t add any value. It’s because these things are important to them. Some home owners are very taken with their new ceiling fans, some are obsessed with their recently-blacktopped driveways. These things don’t necessarily add value to the home in terms of numbers, but they add emotional value to the home owner themselves.
For more information on this subject, please download and listen to The Appraiser Coach Podcast Episode: