Real Estate Appraisals in Ventura and Los Angeles
Ventura and Los Angeles Local Real Estate Market
Home values increased 13% year-over-year in Ventura and Los Angeles 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 for rent over the next 5 years. This is extremely important to homeowners in Ventura and Los Angeles counties as real estate is likely to continue to increase in value.
How to value your home
For home appraisals in Ventura and Los Angeles County, you must consider many factors. Size, location, construction quality, and curb appeal are a few, but many other factors are also taken into account.
How much value does a bedroom add?
In our experience, rooms add more value than just the actual size of the property. Going from 2 to 3 bedrooms is usually worth an additional 15-20% of the value. Whereas, 3-4 bedrooms is typically a 3-5% increase in value. Finally, 4-5 rooms is only maybe 1-3% of the value. We focus in this equation on valuing homes as much as price per square foot.
How much value do bathrooms add?
Adding a bathroom to a property is often a very business decision. Although an additional bathroom in a property that has 3 bedrooms and 2 bathrooms can add $5,000 to $10,000 in value, adding a bathroom in a property that has 3 bedrooms and only 1 bathroom can make a significant difference. Sometimes close to $25,000. This is a convenience that buyers are often willing to pay for.
Price per square foot
We also look at the price per square foot to get a base value for a property. If there is a similar property in the area, including size, shape, and location, it is a good tool to use. However, when you’re comparing your home to a property that’s 200 (or let’s say 10%) fewer square feet than yours, it’s generally a good idea to look at the big picture. Are you willing to pay an additional 10% of the value? Probably not, but maybe 5% more. But, if the property has an extra bedroom, you could add an additional $10,000 premium. But realistically, no one who paid $300 per square foot for a 1,000 square foot property will pay $300 per square foot for 1,100 square feet, all other things being equal. Typically it will only be a $10,000 premium, rather than $30,000 (100 sq. ft. * $300/sq. ft.).
How much value does having a pool add to your home?
With high-end homes, the buyer is more likely to be able to afford the approximate $2,000 annual cost to maintain a pool, and will likely want the pool just for the sake of it. Pools are worth an additional $15k for homes under $400k, 15-25k for homes 400-800k, and around $40k for homes over 800k. As such, the value added of a pool increases as the price of the property rises. The higher the price of the house, the closer the added value of a swimming pool will be to the cost of building it.
How to Value Your House vs. a Completely Rehabbed Property
Some houses in an area have some quality rehab work done, and some are just lipstick on a pig. However, a house that hasn’t been touched in years, but has good bones, can cost a developer about $20/sqft. +/- to complete rehabilitation. This includes hardwood floors, carpet, granite countertops, new cabinets, nice appliances, recessed lighting, new bathrooms, paint inside and out, new baseboards, doors, jams, and cleaning. Often the HVAC system or water heater is replaced. Comparing a house that has been rehabbed at 20/sq ft. yours is difficult. I typically add or subtract $22-25/sqft. when comparing a fully rehabbed property with a non-rehabbed property. Luxury rehab jobs are a bit more difficult to value, as some can cost $40/sqft. Those rehab jobs typically sell for a premium, but you may never see a full return on your investment.
Rent, Rent, Rent
Location always matters. Owning a property on a cul-de-sac can add an additional 5% in value, while owning a property on a flag lot, a parcel behind another property, can deduct $10-50k in value (depending on the quality of the home). ). ). This applies to properties that face a busy street, railroad track, highway, or major artery. Depending on the street, a property that faces a busy street can sometimes be worth 2% less, while a property that faces a highway can be worth 7-12% less. Sometimes more.
Although this article takes many different variables into account when valuing a property, there are many more. Valuing a property is always a unique experience from one property to another. Also keep in mind that all opinions expressed in this article are based on our experience and are subjective.