The Appraisal Process, What’s Involved?

The Appraisal Process, What’s Involved?

 

Lately, I’ve been asked about the appraisal process.  What’s actually involved?  In answer to this question, the appraiser looks at the condition of the overall house.  His inspection time to measure and walk through a home is probably less than 30 to 45 minutes.  Observed health issues obviously should be reported.  But consistently aren’t always.  As to the roof, they do take a look at it and can call for replacement if they see evidence of age, missing shingles or wet ceiling areas in a home.  The appraiser also has been instructed to take pictures of every room, bathroom and garage in a home and numerous exterior pictures including the street and the home from a variety of angels.

 

As to the process of determining value, the financial institutions have provided the appraiser with a form to complete.  It begins with details about the location of the property, the neighborhood and a thorough description of the improvement itself.  Afterwards, the appraiser selects comparable sales from similar neighborhoods which have recently sold.  It’s also become typical for the appraisal to include new active listings which are also similar. 

 

Once those have been selected, the appraiser, in a grid format, makes mathematical adjustments for differences between each of the comparable homes and your home.  Areas where your home has a superior quality received a positive adjustment.  Conversely, inferior characterizes receive a negative adjustment.  The areas where adjustments can be made include the age of the property, the location, the condition, number of bedrooms, number of bathrooms, type of heating system or whether a property is fenced.  When necessary or warranted, an adjustment can be made in each of those categories.

 

Once that is completed, the appraiser adds up all of the adjustments for each comparable and adds or subtracts that number from that properties sale or list price.  It’s certainly a detailed format.  Personally I believe an appraiser should attempt to bracket the comparable sales.  Meaning, one comp should be better, one not quite as nice and at least one that is similar.  From those conclusions, the appraiser makes a judgement as what value best describes your home and is supportable by the report itself. 

 

If you get the chance, perhaps you could let me know if this helps.  Thanks so much and Many Blessings to you this fine Monday Evening.

The Canterwood Community of Gig Harbor

The Canterwood Community of Gig Harbor

 

As I’ve indicated previously, Thursday is tour day for new listings in the Gig Harbor area.  Actually I intended to get this posted then but time expired before getting to it.  Consequently, it’s happening today. 

With this posting, my focus is on the gated community of the Canterwood area of Gig Harbor.  In viewing this area, there are a number of very interesting observations one can make.  Since they are my observations, it probably is more appropriate for me to say, “observations I can make,” which include:

·        When Canterwood was originally planned, the nearest services were either in the town of Purdy to the south or in Gig Harbor property to the south.  Today, a major shopping center including a Home Depot, Albertsons, a grocery store, Costco, McDonalds, a Target store, and several banks are located nearby.  A Hospital serving the entire harbor area was also built close by. 

·        Several years ago I imagined this gated private community would truly blossom.  It has.  But not necessarily for reasons I would have thought. 

Amenities of the area as noted on their website, http://www.clubcorp.com/Clubs/Canterwood-Golf-Country-Club, include, “Canterwood Golf & Country Club is the centerpiece of Gig Harbor and features a Robert Muir Graves–designed 18-hole 7,175-yard championship golf course. Four tennis courts, outdoor swimming pools, fitness center, outstanding dining and Member events complete the many opportunities to enjoy the private club lifestyle at Canterwood.”

As to the homes in the area, overall there are nearly 700 and expansion seems to be ongoing.  Thus making the opportunity to have a new home a real possibility.  As to the price of the homes, I’m going to briefly talk about homes for sale, homes that have prospective buyers and those where an ownership interest has transferred through the closing of a sale.  In that sense, the following observations can be made from a review of the ensuing statistics:     

As of today, there are 36 homes with an average sale price of $853,515 are available for sale.  Of those, nine of them, 25% of the total, are priced above One Million Dollars and the least expensive home available is listed at $544,900 and the most expensive is at $1,595,000. Accordingly, there is certainly enough diversity to appeal to a broad range of prospects. 

Furthermore, the statistics show that there are 12 pending sales with five of them still pending a home inspection.  Of those, the least expensive home with 1,814 square feet of living area is listed at $569,900 and the most expensive home has 4,845 square feet of living area and is priced at $1.275 Million.  It’s important to note that the ratio of current inventory compared to pending sales indicates there are more homes available then buyers which possibly benefits those prospects considering the area. 

Looking at the closed sales occurring in the last 180 days, there are a total of 18.  Four, 22.2%, exceeded $1 Million and the sales price of one of them was what the home was listed.  The others were purchase 6.8% below the original list price.  Of the sold homes under $1 Million, the average sale price was $668,529 and the average living area was 3,430 square feet.  Again showing that there is a variety of price points available.

Hopefully you have enjoyed reading about the Canterwood community as much as I have n writing about it.  More importantly, I hope your day is filled with opportunity and promise where Blessings are abundant.  

Million Dollar Five Day Update

Million Dollar Five Day Update

Good morning.  It’s already Tuesday.  Tuesday’s always come early.  It’s one of the few days when we rely on an alarm clock.  But today, the alarm wasn’t necessary.  Kathleen, my wife of just short of 44 years, couldn’t sleep and got up at 3 am.  She has meetings in her office every Tuesday starting at 6:30 am. 

Most of the time I’m up too.  Tuesday is also my office meeting at Windermere Professional Partners held at Cheney Stadium, home of the Tacoma Rainiers Baseball Team.  Getting going early is important so I’m up and out of the house and ready to roll. 

Checking statistics for Million Dollar home sales last evening for the previous five days in Pierce County, Washington State, it showed there were 146 unsold properties which, accumulatively, had been on the market an average of 167 days per home.  I believe I’ve mentioned before but, with that number of available homes, it’s as much of a buyer’s market as we’ve seen in a while.  At least for Million Dollar properties or estates.

More specifically, in the prior five days there were two new listings.  One in the North end of Tacoma with a view and the other a waterfront home in Gig Harbor.  There were also two listings which reported recent sales and were listed as having a sale pending on inspection.  Of those, one was in the Tacoma County Club on American Lake in Lakewood and the other was in Gig Harbor. 

As to the closed sales, there were three reported.  One was a view property in a gated privacy site with incredible soaring ceilings.  Much like what you would find in a lodge in Glacier Park.  It was originally listed May 1, 2017 at $1.195 Million and had a sale close July 13, 2017 at $1.095 Million.  Interestingly, it had also been on the market for nearly five months in 2016 where it had been listed at $1.2 Million.

The second sale involved a waterfront home on Bonney Lake in northeastern Pierce County.  It also had been on the market in 2016 at $1.35 Million but was later reduced to $1,249,950.  Remaining unsold, the listing expired in August of 2016 and was relisted in June of 2017.  A sale closed at $1.28 Million July 13, 2017.  It would almost seem a prospect had been waiting for the property to come back on the market. 

And finally, the third sale involved a newer waterfront home in Gig Harbor.  As with the first two, it had been listed in 2016, first coming on the market at $1.75 Million but later in 2016 it was reduced to $1.675 Million.  Remaining unsold, it came back on the market in March of this year at $1.595 Million and a sale at $1.33 Million was reported July 14, 2017.   

Being so close to King County where prices have skyrocketed, the opportunity to own a luxury home at a more affordable price certainly exists in Pierce County.  And with the homes noted above, one can see, the possibility to negotiate is possible.

With that said, I must get moving so I will be ready for my morning meeting.  May each of you have a most Blessed Day where all of your dreams come true. 

Are Million Dollar Homes really that interesting?

Are Million Dollar Homes really that interesting?

 

Yes, it would seem they are.  From the TV shows we watch to the magazines we glimpse while waiting for groceries to be scanned at the super market, there’s a certain awe.  Perhaps expected but then again, maybe just a curiosity.   But, what happens when you’re a prospective buyer or seller. 

When one’s home is on the market, you would think they would like to sell.  Sometimes though I sense such interest exists only if someone is willing to pay the price the homeowner has set. 

Looking at the activity occurring in Pierce County, Washington the past five days, the following information can be gleaned.

There were six new listing, with only three of them actually new.  The other three had been listed but one expired and two had listings cancelled.  As of now, each has been relisted by a new agent at a lower price.  Several times that’s happened to me.  But still I wonder, why didn’t the seller allow the original listing salesperson the opportunity to showcase their property at the lower price?  Perhaps those sellers said “I won’t sell for anything less.”  Perhaps they chose to disregard whatever professional advice they had been given.  Maybe they just didn’t like their salesperson.  Whatever the reason, it’s a curiosity to me.

Most interesting are the two homes indicated as “pending inspection.”  Pending inspection indicates a sales contract at some unknown price has been accepted by the seller.  Except the contract is “subject to” an inspection.  Typically the inspection, based on the condition of the home, allows the buyer to renegotiate terms of the contract or ask that certain repairs be made.  Of the two homes in this category, one is priced at $1.1 and the other is at $2.1 Million.  One is in North Tacoma and the other is in the heart of Gig Harbor.  Both are relatively new and offer both modernistic and sensational fixtures, doors and hardware.  Neither is a waterfront home but both have exceptional views, exceed 4,000 square feet of living area, have gas range tops and were on the market just less than a month.

The home in north Tacoma is understandable.  The area is close to the hospitals and, as such, residents to many physicians.  The home in the harbor is a bit of a mystery.  It’s priced well above homes similarly located with comparable views.  Perhaps the prospective buyer does a lot of entertaining.  But, one thing is certain, every buyer is unique. 

Wishing you countless Blessings today and always, I remain your host of choice.  Ken Thiemann with Windermere Professional Partners.

 

 

Personal Reflections

 

Personal Reflections

Although I’ve been in some area of real estate all of my life, I want to reflect a bit today.  In 1989 when I decided to become a fee appraiser, the biggest problem adjustment I had make was to the prices that had skyrocketed beyond comprehension since 1972 when I first began my real estate sales career in Spokane, Washington.  In the 70’s, the average price of a home was still under $30,000.  But I was appraising properties far beyond that.  Some even exceeding a million dollars.  But for me, it was a huge adjustment.  An adjustment I believe still find myself contemplating.    

Similarly, in 2001 when I reactivated my real estate broker’s license, I had other adjustments to overcome.  Yes, they were mental and I did overcome them.  Please understand though, I had been a fee appraiser for over 10 years.  The first adjustment was the paperwork.  In the 70’s a purchase agreement was a single 8½” by 14” page.  In 2001, the average contract sometimes exceeded 20 pages.  Another adjustment was the sense I got from those who knew I had been a fee appraiser, it seemed they really didn’t want to know what my opinion of value was.  As such I began using a range of values.  One more was giving directions.  When I appraised a property, it was always based on the grid of a map.  But when I was asked to give directions, I froze.  I realized I was totally in the dark. 

Although the business of real estate is changing nearly every month, I’ve worked to overcome those problems and now feel comfortable.  Nonetheless, it’s still interesting for me to imagine selling million dollar properties.  Back in the 70’s such sales were so far beyond my comprehension, I just couldn’t imagine them.  Today, well they are almost commonplace. 

Hopefully my reflections give you a better idea as to who I am and how I might be able to assist you and your family or friends.  Until then, I do hope you have a very Blessed day. 

Fox Island's Not The Fox New Network

Fox Island Didn’t Stem from the Fox New Network

If you’ve dreamt of grand living on an island there’s plenty to choose from here on Fox Island.  No, it isn’t named after the Fox News Network and the residents aren’t known as Foxites.  Instead it’s just a stone’s throw away from Gig Harbor across the only access bridge to the island.  People like it because it’s off the beaten path and offers a certain amount community or privacy.  A listing of the variety of community events can be found at http://foxislandwa.net/events.asp.

I began this using the term “grand living” because the homes I’m reviewing today include 12 homes on the island, all listed for more than a million dollars.  Of the twelve, nine are beautiful waterfront homes offering a variety of water views.  Three of the 12 even have docks exceeding 100’ and capable of mooring your vessel of choice.  Several are situated on acreage and one even can be referred to as an equestrian property.

The homes vary in age with the oldest having been originally built in 1949 and one is just in the process of being completed.   Be assured that those in-between have all be updated with the finest craftsmanship and fixtures available.  Consequently, the term “grand living” evolved. 

Of course I recognize that many of these homes have styles and arrangements which were often created for specific residents with very precise, sometimes unique needs.  I mention that because, while most of the waterfronts are stunning, each home has its own personality.  Sometimes those qualities and characteristics just don’t match well with every buyer.  As such, to find the one that’s just right for you and your family, it’s important to consider multiple properties.   

For more information or to arrange private showings, please call me.  I’m available at (253) 370-5626 or my email address is kthiem@msn.com.  Everyone calls me Ken.

Until I hear from you, please have a Blessed Day and Week ahead.

Analyzing and Comparing Million Dollar Homes

Analyzing and Comparing Million Dollar Homes

 In addition to wishing you a wonderful and safe 4^th of July, I’d like to do something a bit different here today.  It’s still about Million Dollar residential properties in Pierce County Washington and I’m still Ken Thiemann.    Compared below are the new listings coming on the market in the past five days.

Location	View	Waterfront	Acreage	Amenities	Style	Cost P/SF	Improved Living Area
Fox Island	Hale Passage	Yes, 100'	2.324	150' Dock	Cabin	$    514.98	2,136
Fox Island	Neighborhood	None	1.391	Sports Court	Designer Cape Cod	$    275.76	4,261
Wauna	Sound View	Community Beach	1.019	Gated Community / Bel Mar Estates	Rambler	$    234.31	5,100
Bonney Lake	Mt Rainier	None	1.55	Secluded Lot	Modern 1 1/2 Story	$    312.42	4,145
Spanaway	Mt Rainier	None	2.58	Equestrian Property	Stylish            2-story	$    277.25	4,779
Lake Tapps	Lake Tapps & Mt Rainier	85'	0.297	Lakefront Dock w/boat launch & lift	Contemporary & Modern 2-Story w/Bsmt	$    428.98	3,485
Gig Harbor	Territorial	None	21.48 Acres / Potential for Develop-ment	Equestrian Property w/Separate Guest House	Dutch Colonial 2-Story w/Bsmt	$    652.57	2,720
Gig Harbor	Sound View	97' High Bank	1.605	Waterfront Home	Newer 1 1/2 Story w/Bsmt	$    283.56	7,741
University Place	Sound/Olympic Mountain Views	None	0.421	Pool & Heated Patio Flooring	Luxury Single Story	$    395.04	5,569

The purpose here is simple to demonstrate the various areas, styles and types of properties which fall into the upper price range.  Obviously, a buyer who wants a residential home in a gated community isn’t going to consider an equestrian acreage.  But if getting a good value for your dollar is important, an analysis such as this can be very helpful.  However, if you’re the type of buyer who can purchase whatever is appealing, value probably isn’t a concern and a comparative analysis wouldn’t be important. 

Whichever category you might fall into, I’d be happy to assist you in preparing such an analysis.  As mentioned previously, my name is Ken Thiemann and I’m available at kthiem@msn.com or on my cell at (253) 370-5626.  Many Blessings to you and yours always.