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I am currently finishing my first spec home here in Montana. Its a 2 story, farm house style home of 2500 sq. ft. with 3 bedrooms and 2 baths on the upper floor, a main level with an open kitchen, dining and living room area, a 3 car garage under the upstairs bedrooms and a daylight basement under the main level with another bedroom, bathroom and family room. Construction is 2×6 frame, vinyl windows, asphalt shingles and color loc type siding, typical for this area. Features, such as the skylights, the ceramic tile floors in kitchen, bathrooms, mudroom, entry way, the hardwood living room floor, the 3 car garage, the central vacuum system, the extra windows, the main floor laundry and numerous built-in storage shelves and closets were included based on our experience with the area. Selling price based on cost should be $200,000.
Public reaction, through showing the home to perspective buyers over the last 3 months, has been totally positive – except for the price maybe. People like the features of the home, as well as its location and lot size.
The problem is that the initial appraisal indicates a market value in the $150,000 to $160,000 range. The difference in dollars between appraisal and cost seems to come from the appraisal formula.
So I’m looking for advice on tweaking or somehow changing the appraisal. It seems crazy to think that we could add $30,000 plus to the appraised value by taking out the garage doors, throwing in some cheap carpet and calling the 870 sq. ft. area a family room. We could even add a cheap fireplace and pickup another 20 grand.
Would the resulting home have more value for a family? I don’t thing so, but then I’ve already proved how smart I am by building the thing in the first place.
The really crazy thing about the deal is that this spring there are no other new homes for sale in this town. Now I would think….
So, does anybody have any advice on how to make the appraisal process work for me.
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I am currently finishing my first spec home here in Montana. Its a 2 story, farm house style home of 2500 sq. ft. with 3 bedrooms and 2 baths on the upper floor, a main level with an open kitchen, dining and living room area, a 3 car garage under the upstairs bedrooms and a daylight basement under the main level with another bedroom, bathroom and family room. Construction is 2x6 frame, vinyl windows, asphalt shingles and color loc type siding, typical for this area. Features, such as the skylights, the ceramic tile floors in kitchen, bathrooms, mudroom, entry way, the hardwood living room floor, the 3 car garage, the central vacuum system, the extra windows, the main floor laundry and numerous built-in storage shelves and closets were included based on our experience with the area. Selling price based on cost should be $200,000.
Public reaction, through showing the home to perspective buyers over the last 3 months, has been totally positive - except for the price maybe. People like the features of the home, as well as its location and lot size.
The problem is that the initial appraisal indicates a market value in the $150,000 to $160,000 range. The difference in dollars between appraisal and cost seems to come from the appraisal formula.
So I'm looking for advice on tweaking or somehow changing the appraisal. It seems crazy to think that we could add $30,000 plus to the appraised value by taking out the garage doors, throwing in some cheap carpet and calling the 870 sq. ft. area a family room. We could even add a cheap fireplace and pickup another 20 grand.
Would the resulting home have more value for a family? I don't thing so, but then I've already proved how smart I am by building the thing in the first place.
The really crazy thing about the deal is that this spring there are no other new homes for sale in this town. Now I would think....
So, does anybody have any advice on how to make the appraisal process work for me.