• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Sacramento Appraisal Blog | Real Estate Appraiser

Real estate appraisals for divorce, estate settlement, loans, property tax appeal, pre-listing and more. We cover Sacramento, Placer and Yolo County. We're professional, courteous and timely.

  • About
  • Appraisals
  • Order
  • Ask Ryan
  • Areas
  • Classes
  • Press
  • Trends
  • Share
  • Contact

Search Results for: explaining how price per

Classes

I’m available to teach the following classes for real estate or law offices. I come to real estate offices for free. It’s my goal to speak somewhere once a week, so please ask. I usually charge for special events, keynotes, extended office visits, out of the area presentations, etc… Let’s make this happen.

SPEAKING GIGS: Each presentation or class can be tailored to fit a time slot in your meeting. I prefer to lead discussion and present in a very interactive way where we can talk about issues throughout the presentation. It’s great to have 30 minutes or so, but I honestly like having 60 minutes where possible because it just gives us more space to dig in. I can also do brief updates and Q&As too. I am available for hire for special events or anything beyond one hour. I have some excellent two and three-hour classes that I’ve taught in California, Nevada, and Oregon.

PUBLIC CLASSES & SPEAKING GIGS:

March 6, 2020: Broker Forum
I’ll be talking at SAR’s broker forum at 9:30am. This is for members and affiliates only. I’ll most likely be doing a market update.

March 24, 2020: Downtown Regional Meeting 9:00am
I’ll be talking at SAR’s regional meeting at 9:00am. This is for members and affiliates only. I’ll most likely be doing a market update.

May 14, 2020: How to Think Like an Appraiser (9am-12pm)
This is a class to walk through how to more effectively work with appraisers and learn how appraisers think about many issues such as comp selection, how to make adjustments, using price per sq ft in real estate, appraising that larger home in the neighborhood, interpreting market trends, etc… We’ll walk through many examples and even use MLS to learn how to comp out some interesting properties. This is a 3-hour class that has had amazing feedback. This is Ryan’s favorite class to teach because it always leads to good conversation with agents as well as many “light bulb” moments where concepts will begin to make better sense for participants. Hosted at SAR.

July 24, 2020: Big market update at PCAR
This will be a lunch and learn and we’ll have about 90 minutes to talk through dynamics to watch in the market. I’ll do a recap and focus on things to watch for this year ahead. My goal is for everyone to walk away with specific stats, but more importantly a big-picture understanding of trends in order to be equipped to help clients make real estate decisions.

September 22, 2020: Big market update at SAR
I’ll be giving a deep market update at SAR from 9:00-10:30am (I think (please check)). We’ll have a good amount of time to talk through some things to watch in the market, how to explain the market to clients, how to talk through trends when others ask about a real estate “bubble”, and where to consider looking for future clients. My goal is for everyone to walk away with specific stats, but more importantly a big-picture understanding of trends in order to be equipped to help clients make real estate decisions.

CLASSES I’M AVAILABLE TO TEACH:

What should we do? This is a presentation where I bring a bunch of visuals and we scroll through and have conversation. I did this quite a bit last year and it worked very well. The idea is to show photos and ask questions. What should we do here? What do we do for comps? What’s the appraiser going to say? What is the market doing? This is highly visual and fun. This can be tailored to fit any amount of time, though 60 minutes is ideal.

One-on-One Training: Sometimes real estate professionals want to sit down and talk for a couple hours about comps, making adjustments, graphs, blogging, marketing, etc…. I love doing this and meeting people wherever they are at. I’m open to talking at my office, somewhere local, on the phone, or Skype.  I do need to charge for my time by the hour for these types of conversations.

Choosing Comps Like an Appraiser: How do appraisers choose comps? How do appraisers view using price per sq ft in real estate? Let’s talk through some methodologies and practical examples (recommended 30-60 minutes).

Big market update: I’m often invited to come talk about the market. What is the market doing? I always bring visuals and leave everyone with ways to share about the market with clients. This is probably what I do more than anything. I can do 30-60 minutes easily, or if you have a special event where you need a couple hours, that’s fine too.

Q&A: I love to sometimes just come and answer questions. I find it’s best if the office sends me 5 or so questions before the meeting so I can get the ball rolling with conversation. But otherwise we can just see where conversation goes.

How to Think Like an Appraiser: This is a class to walk through how to more effectively work with appraisers and learn how appraisers think about many issues such as comp selection, how to make adjustments, using price per sq ft in real estate, appraising that larger home in the neighborhood, interpreting market trends, etc… We’ll walk through many examples and even use MLS to learn how to comp out some interesting properties. This is a 3-hour class that has had amazing feedback. This is Ryan’s favorite class to teach because it always leads to good conversation with agents as well as many “light bulb” moments where concepts will begin to make better sense for participants.

How to Tell the Story of Value in Appraisal Reports: This two-hour class is for appraisers and it has been used for CE credit in California, Nevada, and Oregon. The class will talk in-depth about how appraisers can more effectively tell the story of market trends in appraisal reports.  We often quickly check a box to say the market is “stable” or we say supply is balanced or marketing time is under 90 days, but what support can we give to show what is actually happening? In this class I share ways to support these trends, and even show you short and long examples of what I write in reports. Additionally, I share the way I use a couple 1004MC programs to help produce quick graphs to help effectively support market trends. Having more visual reports helps to support the value conclusions, trends and even adjustments at times.

Social Media for Appraisers: This two-hour class has been used for CE in California and Nevada. I’m glad to teach it in other states too. We talk through how appraisers can use social media in their businesses to help educate, inform, earn new clients, and most ultimately uphold USPAP. This class is very practical as the goal is for appraisers to walk away with ideas they can readily implement in the digital age. We are living in a time where having an online presence is key for business and communicating well with clients too.

Using price per sq ft in real estate (and not abusing it): This presentation is best at 30 minutes and we unpack price per sq ft as a metric. I use practical examples for how price per sq ft works, how it is so easily abused by the real estate community, how appraisers use it differently sometimes, and what it is really good for. This is a conversational class and I prefer to have 30 minutes where possible. Mastering this topic is so important for communicating well with clients who get hung up on using a certain price per sq ft in real estate. This is why I’ll give everyone a couple different ways to explain how price per sq ft works (and doesn’t).

The Emerging Trend of Cannabis in Real Estate: We’ll talk through some of the most common things to consider such as land value, zoning, increasing rents, disclosures, and communicating well with clients when they have questions. I am not an advocate for MJ by any stretch. This is only about explaining the market. It is best to have one hour for this class, though 75-90 minutes is even better.

Effective Blogging in Real Estate: Real estate blogging has been a big part of my business and it’s something I enjoy doing too. Blogging is an opportunity to share knowledge, build relationships and connect with existing and potential customers. If done right, a blog can help build credibility and expertise for your real estate business as well as serve as a place where potential clients can feel you out before deciding to do give you a call. This class is full of tips, how-tos and gives a framework for creating original content too. Two hours is the perfect length.

Appraisal forms imageTop Items to Look for When Reviewing an Appraisal: When you get an appraisal report, do you actually read the report? Or do you just look at the bottom-line value? What should you look for to know if the report is solid or not? In this class we will look at an example 2-page appraisal report and go over 10 quick things to review in the appraisal. Becoming an expert at reading appraisals will help you serve clients better, understand what appraisers are thinking and even challenge bad appraisals.This can be a very quick 10-15 minute presentation if need be.

fha logoOverview of FHA Property Standards: Since FHA is fairly common in the market, it’s important to understand the nuts and bolts of what appraisers look for during an FHA appraisal inspection. What does it take for a property to meet FHA minimum requirements? This class will help when listing and marketing a property as well as communicating with your clients. See my FHA appraisal articles for reference.

How to Challenge a “Bad” Appraisal: Have you had a bad appraisal on one of your deals? What can you do when an appraisal comes in lower than it should? When is the best time to challenge a low appraisal? What can you say? This class goes through really helpful points to be able to communicate with an appraiser, and it also gives you a specific format to help you prepare a solid reconsideration of value. Knowing what to say and how to format your thoughts can be a huge asset for your business. I can take up to an hour for the presentation, though 20-30 minutes in an office has been plenty of time too.

Let me know if you have any questions or if you want to book a class. Call, email, or text message and I’ll get back to you promptly.

Ryan Lundquist
Sacramento Real Estate Appraiser
TEL: 916-595-3735
EMAIL: LundquistCompany@gmail.com
www.SacramentoAppraisalBlog.com

SOCIAL WEBSITES:
www.youtube.com/lundquistco
www.twitter.com/SacAppraiser
Ryan Lundquist on LinkedIn
Sacramento Appraiser Facebook Page

Share:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Why do appraisers give such little value for square footage?

August 22, 2011 By Ryan Lundquist 12 Comments

Why do appraisers sometimes give such little value to something as important as square footage? It’s crazy that an appraiser gave $10,000 in value for 300 square feet, right? Maybe you’ve felt this way about an appraisal on your home or for one of your listings. Give me a minute to help clear up some of the confusion by explaining how appraisers are supposed to come up with value adjustments for house size.

Example 1: A Typical Size Scenario

Real estate appraisers should be giving value to square footage according to how the market sees the square footage. What does that mean? While it may cost $40,000 for a 400 square foot addition, based on an analysis of comps in a neighborhood, the appraiser might determine properties with an extra 400 square feet sell for $20,000 more than houses without that space. This means the market in this particular neighborhood really only rewards $20,000 in value for the size difference. This example of course assumes there are no other factors to consider such as lot size, location, upgrades, room count, financing etc….

Example 2:  The McMansion Mega House

Imagine your house is 6,000 square feet in a neighborhood where the largest model is 4,000 square feet. Do you think the market is willing to pay 50% more for you house because it is 50% larger than the 4,000 square foot model? Probably not. There are situations where the market is actually willing to pay very little or nothing for the extra square footage because it’s considered an overimprovement (or “superadequacy” for the fancy term). This can be very upsetting for home owners and agents, but the appraiser is not being mean or ruthless, but only interpreting the market properly (hopefully).

This is important to understand for the following reasons:

  1. Cost vs. Value:  Appraisers do not give value to square footage based on construction costs, but rather the reaction in the marketplace to extra size. Think of it in terms of a kitchen remodel or pool. Just because a kitchen costs $75,000 to remodel does not automatically mean you’ll see $75,000 in value in the resale market. Or while a pool may cost $35,000, resale value will very unlikely include the total cost of the pool. Cost does not always equal value.
  2. Additions & Conversions:  An addition or garage conversion may not always put your house on par with other larger houses. There are many factors to consider when it comes to valuing an addition. It’s important also to know the neighborhood before planning a huge addition because you don’t want to overbuild for the neighborhood.
  3. The Largest House:  Larger houses tend to have an overall lower price per square foot than medium-sized houses, so applying a straight cost-per-sqare-foot for the neighborhood may not yield credible results for the largest house.
  4. Big New Construction Premiums:  If you buy a newly constructed mega-house like in Example 2, you will likely pay a big premium for the extra square footage during the sale, but you may not see this premium again when reselling.
  5. Real Estate Agents:  Agents who know the local market and how appraisers should look at square footage will be able to coach and resource home owners about the process and what to generally expect.
  6. Unique Neighborhoods:  Each market is different. There is no standard price adjustment for appraisers to make because buyers in one area may be willing to pay more or less for size compared to another neighborhood.

All things considered, it’s not always easy to swallow that a big difference in square footage does not always translate into big value. Let me make it clear too that just because I explained how an appraiser is supposed to give value for square footage does not mean that the appraiser actually did that.

Any insight, questions or commentary? In appraisal reports you’ve read, how much value do you see appraisers give for square footage? I’d love to hear your comments.

If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook or subscribe to posts by email.

Share:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Filed Under: Appraisal Stuff, Resources Tagged With: appraisal principles, appraisal service in Sacramento, appraisers give little value for square footage, appraisers in Sacramento, biggest house in the neighborhood, cost vs value, how appraisers figure out value, how do appraisers determine value for a house, largest house in the neighborhood, Lundquist Appraisal Company, Market Value, McMansion, new construction premium, Overimprovement, Real Estate Appraiser in Sacramento, resale market for large houses, Sacramento Real Estate, Sacramento Real Estate Appraiser, superadequacy, value of an addition

  • « Go to Previous Page
  • Go to page 1
  • Go to page 2
  • Go to page 3
  • Go to page 4

Primary Sidebar

Connect with Ryan

 Facebook Twitter LinkedIn YouTube Instagram

Subscribe to Weekly Post

* indicates required

Search this site

Blog Categories

  • Appraisal Stuff (407)
  • Bankruptcy (3)
  • Divorce (4)
  • Estate Settlement (6)
  • FHA Appraisal Articles (56)
  • Internet (53)
  • Market Trends (482)
  • Photos from the Field (126)
  • Property Taxes (70)
  • Random Stuff (231)
  • Resources (566)
  • Videos (161)

Blog Archives: 2009 – 2021

Lundquist Appraisal Links

  • Appraisal Order Form
  • Appraisal Website
  • Rancho Cordova Appraiser Website
  • Sacramento Appraisal Blog Sitemap
  • Sacramento Real Estate Appraiser Facebook Page
  • Twitter: Sacramento Appraiser (@SacAppraiser)
  • YouTube: Sacramento Appraiser Channel

Most Recent Posts

  • How much have prices risen since the bottom of the market?
  • How long can this market keep going?
  • What is your housing persona?
  • Rapid price growth & the Gilmore Girls next door
  • Are first-time buyers targeting 2-4 unit properties?
  • Stale real estate headlines & buyers flocking to El Dorado County
  • My new sewer line adds huge value, right?
  • The housing market nobody predicted
  • Real estate trends to watch in 2021
  • You carried me & a spreadsheet for Christmas

Disclaimer

First off, thank you for being here. Now let's get into the fine print. The material and information contained on this website is the copyrighted property of Ryan Lundquist and Lundquist Appraisal Company. Content on this website may not be reproduced or republished without prior written permission from Ryan Lundquist.

Please see my Sharing Policy on the navigation bar if you are interested in sharing portions of any content on this blog.

The information on this website is meant entirely for educational purposes and is not intended in any way to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or any other potential real estate or non-real estate purpose. The material found on this website is meant for casual reading only and is not intended for use in a court of law or any other legal use. Ryan will not appear in court in any capacity based on any information posted here. For more detailed market analysis to be used for an appraisal report or any appraisal-related purpose or valuation consulting, please contact Ryan at 916-595-3735 for more information.

There are no affiliate links on this blog, but there are three advertisements. Please do your homework before doing business with any advertisers as advertisements are not affiliated with this blog in any way. Two ads are located on the sidebar and one is at the bottom of each post. The ads earn a minor amount of revenue and are a simple reward for providing consistent original content to readers. If you think the ads interfere with your blog experience or the integrity of the blog somehow, let me know. I'm always open to feedback. Thank you again for being here.

Copyright © 2021 Sacramento Appraisal Blog