Richmond HOME APPRAISAL SERVICES

Why are new construction houses selling for more than resales in my market area?

There may be multiple reasons why new properties in a community will sell higher than an existing property but the largest is commonly simple depreciation. Although the dirt will not depreciate in value - homes will. The components and systems utilized for building age over time and ultimately require replacing. Case in point, most 30 year roofs usually require replacing somewhere near twenty years. Compare this to a house that is 4 years old which has 4 years of depreciation applied to all its building materials. Another important aspect is that newer homes permit the homebuyer to select just what they desire, which most buyers are more than happy to pay additional for.

What is the meaning of an arms-length transaction?

Arm’s length sales are those whereby neither group has a existing association with the other and each act on one’s own.

How are home prices impacted by flood hazards?

This changes based on the type of zone and what percentage of the property is situated within the flood plain. For instance, if just the back half of your lot is situated in a flood zone and there are no structures in the location that could be damaged or blocked by flooding, then it will impart less affect on the appraisal. However, if half your home and parts of your means of entry are located in a FEMA floodplain then it will have a sizeable unfavorable impact on your value. Usually an appraiser will use a few comparable houses that each suffer the identical flood hazard issues to justify their adjustments.