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Showing posts from November, 2014

Bigger Is Not Always Betta

Homes over 7,000 square feet are being appraised at a lesser amount per square foot than homes that are equally as nice with similar features and finishes. Meaning that there is a devaluation in these extremely large homes per square foot due to their size. The simple fact is that BIGGER is not apprising as more valuable on a per square foot bases. At first I was a bit surprised by this, so I went to my mom Joanna Roskowick, the appraisal expert for some clerification about this. Here is her explaination of diminishing returns in real estate appraisal.
“Now, putting on my appraiser hat.... any excess or huge number square footage above the average for the neighborhood or area has what we call diminishing returns. A good example of this is when had four acres in Watsonville with most properties around us were two acres and some one acre parcel selling at $100 k. We wouldn't have been given $400k for land but $100k for one and less for the other three acres. The total may have been $…