Posted on: 11th Apr, 2009 01:28 am
At last we are planning to purchase a property. But the problem is that the appraiser has considered the privacy fencing as horse fencing. As far as my knowledge is concerned, there is a difference in fencing types. I tried to clarify with my appraiser. He said that type of fencing does not matter much and there's nothing that we can do to change the value of the fence. Is correct or has he just screwed us up??? By the way, we are in Arkansas.
Hi Jammie
The property appraiser must have given you the appraisal documents. You can check them out to know about the adjustments made for fencing. You should note that an appraiser uses comparable properties to the subject property while appraising it. I don't think you will get 'screwed' because of the fence. The fence can be a buying feature for you but you should note that the appraiser uses what is usual and customary adjustments in that area. However, as far as I know, a fence is relatively a low item for value in all the states.
Thanks.
The property appraiser must have given you the appraisal documents. You can check them out to know about the adjustments made for fencing. You should note that an appraiser uses comparable properties to the subject property while appraising it. I don't think you will get 'screwed' because of the fence. The fence can be a buying feature for you but you should note that the appraiser uses what is usual and customary adjustments in that area. However, as far as I know, a fence is relatively a low item for value in all the states.
Thanks.
Hey Jammie,
The appraiser should identify the fence and attempt to interpret the market reaction to the fence. While I cannot speak for the market reactions in Arkansas, here in Georgia, the market reaction is typically based on utility. A horse fence will have large gaps which limit utility to containment of large animals or just for aesthetics. But they do have a significant impact on value for large acreage tracts with pasture land. Having a fence with smaller gaps which will contain small pets and children are often seen as a superior improvement, but only to those buyers with children or pets and typically only in residential neighborhoods. Obviously, property types and demographics play a role in how the market reaction is viewed.
Also, I must add that in my experience, the market reaction to a fence is usually far less than cost. Keep in mind that the adjustments are only based on what the item contributes to the value of the whole property, not the value of the fence by itself. I have typically seen fences add about 25-50% of cost in contributory value to the property. This means that a fence that may have cost $5,000 may only contribute $1500-$2500 to the value of the property. Maybe less depending on the age and condition of the fence.
I hope this offers some light to your situation. Best of luck to you on your purchase.
The appraiser should identify the fence and attempt to interpret the market reaction to the fence. While I cannot speak for the market reactions in Arkansas, here in Georgia, the market reaction is typically based on utility. A horse fence will have large gaps which limit utility to containment of large animals or just for aesthetics. But they do have a significant impact on value for large acreage tracts with pasture land. Having a fence with smaller gaps which will contain small pets and children are often seen as a superior improvement, but only to those buyers with children or pets and typically only in residential neighborhoods. Obviously, property types and demographics play a role in how the market reaction is viewed.
Also, I must add that in my experience, the market reaction to a fence is usually far less than cost. Keep in mind that the adjustments are only based on what the item contributes to the value of the whole property, not the value of the fence by itself. I have typically seen fences add about 25-50% of cost in contributory value to the property. This means that a fence that may have cost $5,000 may only contribute $1500-$2500 to the value of the property. Maybe less depending on the age and condition of the fence.
I hope this offers some light to your situation. Best of luck to you on your purchase.
