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Mid-Century Modern

How do you get an appraiser to value vintage features?

September 6, 2017 By Ryan Lundquist 12 Comments

It can be nerve-wracking to have an appraiser come out. So I wasn’t surprised to receive an email from someone worried about his vintage home. Will the appraiser give value to the vintage features? How can an owner ensure the appraiser will give proper value? Let’s talk about that.

Question: How do I get an appraiser to value these vintage features?

Answer: That’s a great question. I’m not trying to be frustrating by not answering directly in the way you might wish, but the most important thing to remember here is that value is found in the market. What do buyers prefer? Are buyers paying more for homes with vintage features or are they paying more for homes that have a vintage vibe but with modern upgrades? I find sometimes in the vintage world an owner will restore a property to its original state. I get that, but just because so much time and money was spent on a restoration does not mean the market is going to pay the same amount as a house that has been remodeled with current upgrades. In some cases buyers definitely pay for older era elements, but at the same time they tend to pay more when the kitchen is modern (and not original). I don’t say this to be offensive, but only to highlight the reality that the proof of value is found in the comps. In other words, if there is more value for being totally vintage, then an appraiser ought to be able to find similar homes that show higher prices. At the same time I get your concern because it’s easy to see blue and pink tile from the 1950s and immediately ding value because it’s outdated. This is why it’s going to be important for the appraiser to be in tune with the local market and be objective by letting the market speak rather than being shaped by his/her personal preferences. To be honest I remember in my early days coming across a Mid-Century Modern home and making the mistake of assuming the original condition was worth less when in fact it was something desirable for the market. Doh!!

Restoring a house can be very expensive, so I recommend making a detailed list for the appraiser about what has been done. This can help the appraiser understand the quality and cost of the improvements. Keep in mind if restoration is a trend in the neighborhood, it might help to mention that or even share specific examples you have seen. I’m not saying to pressure the appraiser to “hit” a certain price point (please don’t), but only highlight what is happening in the neighborhood. Personally I love hearing about what’s happening in a neighborhood from someone who lives there because it’s data for me to consider. Just remember not all the money spent on a restoration or remodel will show up in the value (it always shows up on HGTV remodels though). On a practical note you can use my appraiser information sheet if you wish.

BIG POINT: Just because something is done to a house does not mean the market is willing to pay for it. When it comes to a full vintage restoration, we have to ask if that’s something the market is willing to pay for or if it’s just one owner’s passion for yesteryear. I think of restored cars as a good example of one owner dumping a ton of money into a vehicle only to have the market pay less. I’m not saying that’s the way it always works in real estate in every case, but restoring something to its original state can be very costly and the market might not absorb that cost. The proof is in the comps though. 

I hope this was interesting or helpful. Thanks Luis Sumpter for the first photo.

Questions: Have you seen the market pay more for homes that are restored to their original condition? What examples can you think of where the market did NOT pay for certain upgrades? I’d love to hear your take.

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Filed Under: Appraisal Stuff Tagged With: 1950s, make a list for appraisers, Mid-Century Modern, original condition, original features, question from reader, restored homes, Sacramento appraisals, Sacramento home appraisers, talking to appraisers

The rage of modern homes in real estate

August 23, 2017 By Ryan Lundquist 11 Comments

Modern homes are all the rage in real estate. I don’t know about you, but I’m seeing them pop up not only in Sacramento, but in many markets throughout the United States. So today I wanted to interview Ted DeFazio, a local real estate agent who specializes in these types of homes. I hope this will be valuable and interesting. Any thoughts?

Ryan: What is a modern home? And what is NOT a modern home?

Ted: The way I describe a modern style home would be the use of clean lines, lack of ornate detailing, open feel, in many cases vaulted ceilings, merging of indoor and outdoor spaces with a combination of large windows and doors and usually has a post and beam angled, commercial style flat or simple gable roof lines. Some homes will have a combination of all three. Carports and clerestory windows (starting beyond the header and into the roof line) are often a trademark of the modern style as well.

Ryan: So how do you describe that home with a few modern upgrades?

Ted: There are a lot of homes that would be considered contemporary and not full on modern. But I think this is all very subjective and up to interpretation. For instance, a ranch home that has had a modern style kitchen remodel with flat front cabinetry and minimalistic touches might feel modern but is it a modern home? I think the architecture from the front elevation and finishes through to the back yard would have to reflect that same style in order to be considered a true modern home. I remember a home in Granite Bay that was a mix of styles with some very modern and some very traditional details. Did it work? Sure. Was it a little confused? Yes.

Ryan: What is the difference between modern and mid-century modern?

Ted: Mid century modern would be homes built in the 1950-1970s era. Eichler style and many Carter Sparks designed (built by Streng Bros) homes fit this style to a T. They are mostly post and beam architecture and have that unique, classic style. Dramatic entry ways and striking front elevations sometimes devoid of regular height windows, carports instead of conventional garages, exposed concrete hallways, flat front cabinetry, skylights, atriums, courtyards, aluminum windows and large sliding glass doors and clerestory windows are all signatures of this style.

Ryan: Do modern homes have to be newer in age?

Ted: Modern style homes are not exclusive to a decade. There are new homes being built in a modern style today. There are some great examples in the Sierra Oaks, Wilhaggin and Downtown Sacramento neighborhoods. Some homes combine styles like say a modern craftsman or modern prairie style.

Ryan: Why do you think modern homes are showing up more and more in Sacramento and beyond?

Ted: The average buyer in Sacramento is getting more sophisticated and open to different styles of architecture. We are slowly shedding the “country bumpkin” label as a city. I think the influx of Bay Area buyers is also pushing the design landscape into a more modern feel. Is it a trend? Probably. But the farther we get away from faking Tuscan style, the better. Some people want to be different and living in modern architecture definitely makes a statement. Some buyers might have grown up in a Streng or Eichler style and want to get back to the feeling of living in one again.

There was a time when modern Streng Bros homes were difficult to sell and earned such descriptions as 70’s architecture or flat-tops. I created SacModern.com to help highlight the many modern and contemporary homes on the market. Give them a stage, in a way. And try to describe them using terms true to their respective styles. I have sold homes to many out of towners through the state who find that Sacramento as a region has a lot of cool architecture. Not only is there a great selection of modern properties but they are cheap compared to the larger metro areas the buyers are coming from.

Ryan: What do buyers of modern homes tend to look for?

Ted: Open concept living, striking architecture, outdoor privacy, creative inspiring spaces and a place to show off their vintage furniture collection. Your home can be seen as an extension of your personality. Someone that is more reserved might want a more buttoned down traditional home whereas a flamboyant or eccentric type might seek something radical or different than the norm as far as design goes.

Ryan: Any tips for valuing modern properties?

Ted: Typically, a modern home will sell for more than the traditional style home down the street with the same square footage. Maybe it’s a premium for the architecture, the special finishes or the time that went into designing the home. I usually ask the appraiser if they are familiar with the style before they meet me at the property just to make sure they understand the unique qualities. In the Bay Area, the modern neighborhoods are becoming historical areas, protected from demolition or odd style-killing remodels. Because the Bay Area usually has a ripple effect in Sacramento, this might be coming down the pipe for our area.

Ryan: Anything else you want to add?

Ted: Some of these styles do better in different areas. In El Dorado Hills for instance, modern is a tougher sell than in a more city-centric area. I find that the farther away from Downtown Sacramento you are, the harder it will be to sell modern style architecture. My Gary Way listing in Carmichael would’ve been sold a lot faster if it was closer to downtown. Is this due to the demographics that typically buy these homes? Not sure. But I have seen it quite often. Professionals and creatives alike are drawn to the modern style. These types tend to work in and around the core and see a suburban commute as a huge negative.

Ryan: Thanks so much for doing the interview. You killed it. Everyone, you can check out Ted’s website here.

Closing appraisal thoughts: My observation is many modern and mid-century modern homes carry a wider appeal, so it’s important to not just choose three ranch homes in the neighborhood for comparison. This means in many cases we might have to go out a little further and find something that is architecturally similar (and in a competitive area hopefully too). For instance, I appraised a Mid-Century Modern home in Fair Oaks recently and I pulled comps from various portions of Fair Oaks and Carmichael because of the custom nature of the property. I couldn’t just keep it nice and tight in the immediate area because the market area was simply wider for these types of properties.

Questions: What do you think of modern homes? Where are you seeing modern homes pop up? Do you think they sell for more than traditional ranch homes? I’d love to hear your take.

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Filed Under: Appraisal Stuff, Resources Tagged With: appraisaer, Appraisal, home appraisals, House Appraisal, interview about modern homes, Mid-Century Modern, modern homes in Sacramento, Q&A, Ted DeFazio, Ted DeFazio Real Estate, trend of modern homes

The line between retro and outdated in real estate

September 4, 2012 By Ryan Lundquist 6 Comments

When looking back on design and styles of decades past, it’s hard to believe people bought into the way things were. But then again, our kids will one day check out our iPhone photo albums and think the same thing. When it comes to real estate, homes that have not been updated in many decades are often marketed with slogans like “original condition” or “Grandma’s dream home,” which are not usually compliments. However, some buyers actually prefer a “vintage / retro” feel and value a more dated design – particularly with Mid-Century Modern (MCM) homes.

Check out the following pictures and tell me if you think any of these features are desirable. Are you ready to bring back some of the older styles?

Sacramento Appraisal Blog - Retro Pic

This is a Streng home with a terrarium, which means plants can grow in soil inside. Mid-Century Modern homes have somewhat of a cult following in the Sacramento area, and some buyers prefer them (while other buyers purchase them not even realizing there is a sub-group of buyers who love them). Read more about Streng homes and check out more photos of River City Commons (a Streng neighborhood).

Sacramento Appraisal Blog - Retro Pic

Sacramento Appraisal Blog - Retro Pic

I haven’t seen too many builders install green carpet lately. My house had shag green carpet while growing up. Did yours?

Sacramento Appraisal Blog - Retro Pic

Sacramento Appraisal Blog - Retro Pic

Ah, vintage wallpaper. If you had to take one of these, which would it be?

Sacramento Appraisal Blog - Retro Pic

Sacramento Appraisal Blog - Retro Pic

Sacramento Appraisal Blog - Retro Pic

Does this house need a remodel or does the older vibe carry a value premium? How do you like the fur toilet seat cover?

Sacramento Appraisal Blog - Retro Pic

I still see wood paneling from the 60s and 70s all the time on appraisal inspections.

My take on vintage/retro vs. outdated: The bulk of buyers prefer recent updates instead of styles from decades past. When a house is totally outdated, it usually means buyers will pay less in light of the huge cost to bring the home up-to-date. However, one man’s retro is another man’s treasure (I don’t know if anyone really says that). While most of the photos above rank high on the ugly scale for many buyers, it’s important to keep in mind that some buyers prefer “vintage” or “retro” elements in certain neighborhoods or with an older style of architecture. There are actually some quite stunning examples of vintage homes out there. This is why it’s important to really know a neighborhood, and for appraisers to suspend personal preferences to uncover the way buyers see the market. What original elements do buyers prefer? What dated features help increase a sense of “charm”? Is there anything an owner should not change about the house if selling?

Questions: What do you think of the pictures? Where is the line between “retro” and “outdated” in your book? I’d love to hear your thoughts in the comments below.

If you have any questions or Sacramento home appraisal or property tax appeal needs, let’s connect by phone 916-595-3735, email, Twitter, subscribe to posts by email (or RSS) or “like” my page on Facebook

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Filed Under: Appraisal Stuff, Photos from the Field Tagged With: foil wallpaper, Home Appraiser, House Appraiser, MCM, Mid-Century Modern, outdated house, outdated style real estate, photo of green carpet, pictures of retro homes, retro, retro photos, Retro vs. Outdated, Sacramento Home Appraiser, Streng homes, ugly or retro, vintage vs outdated real estate

The skinny on Streng houses in Sacramento

November 19, 2010 By Ryan Lundquist 32 Comments

There are about 3,000 Streng homes in the Sacramento area, and I just finished appraising one recently. I have valued quite a few Streng homes through the years since they show up in many local communities.

You may be wondering what in the world a “Streng” home is, so let me break it down in a nutshell. A Streng home is a mid-century modern (MCM) home built by the Streng Brothers and designed by Carter Sparks. Strengs have a modern feel to them, lower pitched roofs, high windows, few windows in front, skylights in many cases, and they often have terrariums too. Strengs were influenced by Bay Area builder Joe Eichler.

Here is a photo of a Streng home in Elk Grove:

An article from “The Beam Guy’s” website helps give insight into Steng homes.

The Streng Brothers seemed to have had an almost intuitive grasp of where the valley was headed, and what was needed. The enclaves are not sprawling, endlessly repeating, cookie-cutter tracts – they’re neighborhoods. Some (River City & Evergreen Commons) even include private parks that foster a safe and family friendly place to create that all-important sense of community. These homes were affordable, and the Streng Brothers fought for and received FHA approval — a legacy that is still profoundly shaping these lovely neighborhoods. Many are still filled with teachers, professors, and a variety of other professionals. Several have neighborhood associations with an online presence — filled with photos, upcoming events, residents’ stories, and even favorite recipes (see the links on the far left).

 Although categorized as mid-century modern (a.k.a. MCM, Postwar Modern, or California Modern), deserving of historic note and preservation, these homes truly were forward looking. They fit today’s “modern” lifestyle seamlessly. The Streng Bros. worked with Carter Sparks to create a home, uniquely suited to the hot Sacramento valley: interior atriums domed with tinted acrylic to block heat, exposed aggregate flooring enhances cooling, open living areas allow free flowing AC, and lots of natural sunlight without the “hotbox” effect.  Moreover, these homes provide a private retreat from the hectic 21st century world, with front exteriors that are setback and substantially closed-off from the road, and back exteriors with lots of windows and sliders that tend to open into beautifully landscaped backyards and patios.

Here are some relevant links in case you’re interested in Streng properties.

Blog cataloging restoration of an Eichler home in Land Park
Eichler Network
Floor Plans for Streng Homes
Modern Valley Blog
Pictures of Streng Houses on Flickr
Sacramento Bee Article
Sacramento Mid-Century Modern Tour
Streng Brothers Homes

If you live in or have lived in a Streng home (or would like to), I’m curious to hear your thoughts about Strengs. What attracts you to the design? What do you like most? Anything you don’t like? Or if you’re in real estate, have you sold many Strengs? In your mind, what is the perception among buyers for Streng homes?

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Filed Under: Appraisal Stuff, Resources Tagged With: appraiser in Sacramento area, Carter Sparks, Elk Grove Streng Property, Joe Eichler, Lundquist Appraisal Company, MCM, Mid-Century Modern, Real Estate Market in Sacramento, Sacramento Appraisal, Sacramento Area Appraiser, Sacramento Home Appraiser, Sacramento House Appraiser, Streng Brothers, The Beam Guy

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