Real Estate Appraisal in Ventura and Los Angeles
Local Ventura and Los Angeles Real Estate Market
Home values are up 13% year over year in Ventura and LA County. Many of the world’s largest funds, including THR California, Colony Capital, Blackstone, KKR, and Waypoint are acquiring nearly 1/3 of all homes on the open market to rent over the next 5-year period. This is extremely meaningful to homeowners in Ventura and Los Angeles counties, as real estate will likely continue to increase in value.
How to Value Your Home
For home appraisals in Ventura and Los Angeles County, you need to take into account many factors. Size, location, construction quality and curb allurement are some, but many other factors are always taken into consideration in addition.
How Much Value does a Bedrooms Add?
From our experience bedrooms add greater value than just the actual size of the character. Going from 2 to 3 bedrooms is usually worth an additional 15-20% of value. Where as, 3 to 4 bedrooms is usually an increase of 3-5% of value. Finally 4 to 5 bedrooms is only maybe a 1-3% of value. We focus on this equation on valuing homes as much as the price per square foot.
How Much Value Do Bathrooms Add?
Adding a bathroom to a character is usually a very marketable decision. Although an additional bathroom on a character that has 3 bedrooms and 2 bathrooms may only add $5,000-$10,000 in value, adding a bathroom on a character that has 3 bedrooms and only 1 bath can make a meaningful difference. Sometimes close to $25,000. This is a convenience that buyers are most often willing to pay for.
Price Per Square Foot
We do also look at price per square foot to get a base value for a character. If there is a similar character in the area, including size, shape, and location, it is a good tool to use. However, when you are comparing your home against a character that has 200 (or say 10%) square ft less than yours, it is usually a good idea to look at the bigger picture. Are you willing to pay an additional 10% of value? Probably not, but maybe 5% more. But, if the character has an additional bedroom, it could add an additional $10,000 premium. But realistically, nobody who paid $300 per square foot for a 1,000 square foot character will pay $300/per square foot for 1,100 square feet, all else being equal. It will usually just be a $10,000 premium, instead of $30,000 (100sqft. *$300/sqft.).
How Much Value Does Having a Pool Add to Your Home?
With higher end homes, it is more likely that the buyer can provide the approximate $2000 annual cost of maintaining a pool, and will likely want the pool just to have it. Pools are worth an additional $15k in value for home under $400k, 15-25k for home 400-800k, and about $40k for homes over 800k. As such, the additional value of a pool goes up as the price of the character goes up. The higher price the home, the closer the additional value of a pool hits the cost of constructing one.
How To Value Your Home Against a Fully Rehabbed character
Some homes in an area have a quality rehab job, and some are just lipstick on a pig. However, a home that hasn’t been touched in years, but has good bones, can cost a developer approximately $20/sqft. +/- to fully rehab. This includes hardwood floors, carpeting, granite counter tops, new cabinets, nice appliances, recessed lighting, new bathrooms, paint inside and out, new baseboard, doors, jams and cleaning. Often the HVAC system and or water heater is replaced. Comparing a home that has been rehabbed at 20/sq ft. to yours is difficult. I usually add or subtract 22-25$/sq ft. in comparing a fully rehabbed character to a non rehabbed character. Luxury rehab jobs are a little harder to value, as some can cost $40/sq ft. Those rehab jobs usually sell at a premium, but may never see a complete return on their investment.
Location, Location, Location
Location always matters. Having a character on a cul-de-sac can add an additional 5% in value, while having a character on a flag-lot, a parcel behind another character, can deduct $10-50k in value (depending on the quality of the house). This applies to similarities that backup to a busy street, railroad tracks a freeway or major artery. Depending on the street, a character that backs up to a busy street can sometimes be worth 2% less, while a character backing up to a freeway can be 7-12% less in value. Sometimes more.
Although this article takes into account many different variables in valuing a character, there are many more. Valuing a character is always a rare experience from one character to the next. Please also keep in mind that all the opinions expressed in this article are based upon our experience and are subjective.