Gaining Perspective from Subject’s Sale History

09 May Gaining Perspective from Subject’s Sale History

It’s a ​USPAP ​requirement to ​review and report the subject’s 3 year​ sale/​transfer history and the subject’s 12 month listing history. This does​ not​ preclude us from analyzing the subject’s ​transfer/​sal​e(s) prior ​to the 3 years. In fact, reviewing the subject’s prior sale​(s)​ can help gain​ perspective on how the subject property fits into the market value puzzle. I especially like to look at historic sales when there are aspects of the subject that are Atypical (Location, Design, GLA, etc)

I recently appraised an A-Frame home in foothill market area. There were not many A-frame homes that I found sifting through potential comps back 1+ years. The subject sold back in 2004. Yes, this is over 16 years old but nevertheless I graphed the last 16 years to see how the subject trended at the time to today’s market.

At times, unique design homes (A-frame, Gambrel, Mountain, etc) may not fit what a majority of buyers are seeking for home design. While generally accepted in the foothill market place, these style homes are simply not for everybody so it’s important to analyze the potential market reaction. The graph shows the subject trended near the bottom of the sales range. 

When I viewed recent comps, I was able to find some unique design homes that likely compete with A-frame homes. And not to my surprise, these homes trended near the lower end of sales range which was also supported by my historic graph of possible value range of where the subject may land in today’s market.

Bryan Lynch
Certified Real Estate Appraiser
Office: 530-878-1688
Bryanclynch@gmail.com
Roseville Office : Auburn Office
www.AdvantageAppraisalsCa.com

Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.  This information is NOT intended to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or other potential real estate or non real estate purpose. This appraiser is NOT a qualified home inspector and any tips are for informative purposes only. If you’d like to obtain and order an appraisal for your specific needs, please contact Bryan at 530-878-1688 for more information.