Paul's Appraisal Blog

    Sometimes when people are considering buying a home, they think about the amount of living area, commonly known as Gross Living Area (GLA) that a home has.  The question may arise- what exactly is considered to be GLA?

    The GLA of a home is the area of the above-grade, finished living area as measured around the exterior of the building, as defined by ANSI.

    The typical items that are NOT considered in the GLA are:

• Garages
• Basements
• Enclosed Patios
• Porches
• Attics

    This is important to understand, because some sellers, buyers, or real estate agents sometimes confuse this concept, claiming a much larger GLA than what there really is.  For example, I've seen many instances where the MLS claims a much larger GLA for a home because they are counting the finished basement.

    Also, before buying a home, it might be a wise idea to actually have the GLA verified. I have seen many cases where the GLA stated in the MLS is taken from public records, but when actually measured, was significantly smaller.

    If you have any questions about the GLA of your home, give me a call or email. I can probably tell you what is considered part of the GLA calculation or not. I also offer an inexpensive home measurement service if you would like to remove any doubt.

    A real estate appraisal is an opinion of value, supported by facts and analysis, that is used for various mortgage and non-mortgage uses such as estate or divorce settlement, relocation, or property tax challenge, to name a few.

    The appraisal itself consists of two basic parts: verification of the subject property attributes, and calculation of the value opinion. In this post, I will talk about the property verification. In subsequent posts, I will talk about the value analysis and the three approaches to value.

    When an appraiser inspects a property, they try to confirm the information in public records, and determine the condition of the property, noting any needed repairs or adverse conditions. The first step in most appraisal inspections is to inspect and measure the exterior. The measurement of the exterior is how the Gross Living Area, (GLA) is determined. As stated in another post, the GLA listed in many public records is often incorrect.

    After the exterior inspection and photos, the appraiser moves to the inside to ascertain the condition of the subject. One of the key items looked for are anything that creates issues with safety, structural soundness, and livability. Such things might include infestation, evidence of water damage from pipes or roof, security bars with no interior release, doors that open to the outside on the second story with no stairs (I've seen it!!), and other items.

    Once the inspection is done, the appraiser normally takes pictures of every room. Many homeowners are concerned that every picture of their son's dirty room and filthy garage is going into the report. This generally is not the case. Most of the time the report will contain a sample of interior photos to show the interior, or items of concern. The majority of the photos are for future reference, in case the home is foreclosed on and the owners have done something to it since the inspection. They are proof of the condition on the day of inspection. It's a liability thing.

    If you get an appraisal, your appraiser should take the time to thoroughly inspect and measure your home, as well as answer any questions.  I personally take the time to properly inspect the property. If you want to make sure that you are getting a thorough inspection and an accurate value, give me a call or send an email. I'd be happy to talk with you about the entire appraisal process.

    This apparently is the second unexpected increase in the past three months. April's index rebounded 7.1% after the seven-year index hit an all-time low in March. The consensus was expecting the PHSI to fall by 1.0% in the month, with estimates ranging from -3.0% to +3.5%.

    The article said that each of the four regions saw improvement in the month as sales in the Midwest rose 1.3%, the South rose 9.3%, the West advanced 4.6% and the Northeast posted a 3.4% gain.

    The PHSI looks at home sales that have been signed but not finalized, a process that takes another month or two. The value of the index lies in its ability to forecast existing home sales, which represent eight-tenths of the market.

    Perhaps we are starting to see a little light at the end of the tunnel! I guess home prices are getting so low that people can't resist purchasing. If you're thinking about buying a home, now would certainly be a good time to do it. Interest rates seem to be inching up, and your dream home may get snapped up while you're waiting for the "bottom of the market" . What do you think?  Give me a call at 760-525-2742 or send an email at paulmcewen@cox.net and let me know.

    I wonder sometimes if people are worried about some stranger wondering freely around their house with a clipboard taking notes and pictures. I know I might be worried too, except that I know what it takes to be an appraiser.

    Most people know that appraisers go through a lot of education and training, and have to pass some comprehensive exams on appraisal practice and ethics, but do they also know that each appraiser goes through an extensive background check? 

    Even before becoming a trainee, an applicant has to submit fingerprints for a background check. It the applicant has committed any crime, aside from a minor traffic violation, then he or she cannot become an appraiser. Additionally, if a practicing appraiser commits a crime, then they get their license revoked.

    You can see the status of an appraisers license on the web site for the Office of Real Estate Appraisers (OREA). You can also see a list of appraisers who have had disciplinary action taken against them. (It makes for some interesting reading)

    Although the list seems long, there are over 15,000 licensed appraisers in the state of California (Not including trainees), so the number of appraisers with problems is really a very small percentage.

    If you'd like to find out more about appraisers or appraising, or anything else for that matter, go ahead and give me a call (760-525-2742) or shoot me an email (paulmcewen@cox.net). I always like "talking shop" with people.

I apologize for not writing in a while. My wife had back surgery and I've been busy holding down the fort, so to speak...  Anyway.....  

    I, like many people in the real estate business, am not having a great time right now. Home values are still falling, credit is tight, prices for everyday items are going up, and people all over in in a negative mood.

    With all of this negativity, however, I still see signs that things are changing. People are still buying houses. It's not like it was in 2003-2006, but houses are still being sold. The foreclosures and REO, bank-owned properties are getting mopped up, little by little, decreasing the downward pressure on home values.  Housing is more affordable now than it has been in the last 4 - 6 years.

    Soon, we will turn the corner. This dismal real estate market will not last forever, and I personally think that we will see a significant change by summer of 2009, early 2010. It seems a long way off, but it will be here before you know it. The longer we can survive this downturn, the more excited I get, because I know the end is getting near and that we will be able to look forward to a stable market were everyone will prosper.