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Meatloaf

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Reply with quote  #1 
If when doing a house, I look at it.  If it looks like its been updated within the past 15 years... I ask questions.  If it doesn't look to me like it has been updated in the last 15 years then I personally don't care and I don't think the market cares.

The problem I run into is that I say it hasn't had any updates and the borrower gets mad and says they replaced this and that and swears they spent a ton of money in 2008 on the house... But although they may have spent the money, the items they bought did not look any better or worse than the average 15-20 year old un-updated house.

In other words... If a house was "updated" 5 years ago yet the style doesn't meet the current trends do we give a damn?

So... Like if you pull down that 1980's wall paper and pastel counter tops and replace it with hunter green and burgandy paint and put in the cheapest brown $25/sf granite counter tops you can find at home depot.... it still looks like its 15-20 years old.  Does that constitute an "update" even if it was done a year ago?

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Meatloaf

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Reply with quote  #2 
for example.

See this picture.... how old is this "update"...


The house was built in 1991.  Its a vacant house... No one around to ask.  What do you assume?

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Click image for larger version - Name: Capture.JPG, Views: 25, Size: 77.52 KB 

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Bobby

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Reply with quote  #3 
Your not alone.  You make the call.

Shake your head and pretend to give a damn...

Refi's are when they think removing that dead tree gave them an increase in value.  If you can tell they are going to be a pain, I'll quote the owner (Per Owner, .....) and then I will carry on.

A purchase, no one cares, unless the value isn't there.  Then they try and squeeze some value.  Did you notice the type of paint...it is professional paint that is only used in million dollar homes......


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Meatloaf

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Reply with quote  #4 
My problem is on vacant homes... This particular case was a refi of a tenant occupied home.

How the hell would I recognize that this was an "update"?

Better yet, same situation with this photo. Capture.JPG

H
ow was I supposed to know this was an UPDATE from 2014?

Seriously?????  the house was 70 years old and looked updated about 1985 to me.


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keith

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Reply with quote  #5 
Notate the updated backsplash but the overall kitchen has not. Check the early 90's wood trim on the countertops which haven't been updated. Cabs haven't been updated. Nor the appliances. Homeowner probably argued with you that it was updated.
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Meatloaf

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Reply with quote  #6 
Thats the point... He "remodeled" the kitchen in 2014 TO LOOK LIKE THIS!!!!

So is it a "remodel" if it still looks like 1984 regardless of when the work was actually completed?



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MEP

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Reply with quote  #7 
I get your point but I try to always ask the contact person to provide me with everything that has been done, to that property, over the past 15 years and when it was done...I find it make a difference with the owner or agent attitude. Additionally, I tell them the basis guidelines that we are interested in...More often than not it is an email to that particular person. 

But most importantly, it is all about the definition of renovation, updating, and redecorating; their definition is usually difference from ours. Yes, I know your point but a conversation will resolve some issues, before they arise...From your comments, I am guessing that you had a condition, it waste time to resolve any and All conditions.

Happy July 4th...

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BillDing

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Reply with quote  #8 
I always ask the updates and upgrades. Helps support your value and, as mentioned, keeps the owner off your back.
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Meatloaf

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Reply with quote  #9 
I feel like if it isn't obvious to me (or someone like me) then it isn't relevant.

Doesn't it make sense that if a seasoned appraiser has to ASK if his house has been renovated then it doesn't matter.

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MEP

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Reply with quote  #10 
Yes, read the UAD, it asked 4 different time frames: a. less than one year, b. one to five years, c. five to fifteen years, (d. and over fifteen is implied, to be ignored). Every job has a different level of workmanship and quality of materials. I don't think any of us can look at some of the stuff I see and determine the date of the renovations / upgrades...you see twice as many homes per year as I do, can you?

When is comes to spending money, there are six different levels #6 wants the latest and greatest, #1 wants to repair or replace with whatever will make it work a few more weeks or months. The others are more main stream...I am a #6 but I only have funds to support #1...

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pnalley

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Reply with quote  #11 
When I make the appt. I ask for a list of everything they have done to the house in the past 15 yrs. There are thing that matter that are not visible from the outside that do indeed count. Water heaters, re-plumbed, rewired?
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Meatloaf

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Quote:
Originally Posted by pnalley
When I make the appt. I ask for a list of everything they have done to the house in the past 15 yrs. There are thing that matter that are not visible from the outside that do indeed count. Water heaters, re-plumbed, rewired?


These are not updates... These are repairs.  Have your comps been re-plumbed?  or re-wired?  What about that water heater????  Those are disposable, they expire about every 9-11 years.

I have never seen someone pay more for a house because it was re-plumbed or had a new water heater.  Does it really matter???

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RubberStamp

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Reply with quote  #13 
Yes replumbing and rewiring..  new roof, windows.  They do matter.  Problem is more often than not someone will overpay for one that doesn't have it and just look at cosmetics.  The 1004 is geared like that...  they are wanting you to comment on cosmetics mostly that's why they specify kitchen and baths. But unless a newby is lucky and gets an updated one a savvy buyer will care about those things and pay a little more.    Very tricky when the owner updates all the parts unseen and doesn't touch cosmetics.  It is the opposite of what you do if you want to make money.  
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Meatloaf

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Reply with quote  #14 
The houses I see with 50+ year old plumbing.... Work just fine.  If the plumbing is changed out, I consider that a repair not an update.  Same thing for the roof.... A new roof is a repair, not an update.

Updates should refer only to items that are stylistically out of sync with current trends.  Things like plumbing, roofing and HVAC are not usually "update" but they can be "replaced" or "repaired".

Bedrooms and dens are not very important because other than paint and carpet... What else is there to do?  Generally by the time the bedrooms and dens need an "update" the original paint and flooring are at the end of their useful life anyway.  

Kitchens and bathrooms however have fixtures, appliances, and other items that tend to show the age of the improvements more so than other rooms.  This is an area where people typically replace fully functional items solely for the sake of putting in a more trendy version of it.

So.l... Is a house that was updated 15 years ago worth any more than a house that has not ever been updated??? Neither match current trends and both may require the same cost to do a modern update.

I find that the market doesn't really show a value difference unless it is a RECENT update.... Like within the past year or so.

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MEP

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Reply with quote  #15 
Yes, at the very least , it enhances appeal, thus value or less marketing time...Why did you build a new home rather than buy an older home...I am guessing the new construction was more than a similar but older home...
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Meatloaf

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Reply with quote  #16 
Quote:
Originally Posted by MEP
Yes, at the very least , it enhances appeal, thus value or less marketing time...Why did you build a new home rather than buy an older home...I am guessing the new construction was more than a similar but older home...


I built a new home because I couldn't afford an existing home.

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