Coastal chic vs backwoods appraisals.

[Jim M.]

First ever BP forum post. I’m a 30 year GC in coastal resort town. Standard is for me is high end clients who want to improve their home and return the beauty into their ease style and comfort. Along the way I’ve learned a thing or 3 in how to efficiently set homes apart from the norm. I’ve done some flips all to success but not my every day stock in trade. YET. My wife and I are very design and architecture minded. as for the heavy lifting? It’s all I do. My approach let’s just say is different. So... I’ve found a new flip market that interests me. One with population growth of business and families. In a beautiful part of the country. The perfect blend of urban and country. Seemingly still a manageable entry price threshold of home product. Demand is high. Inventory is low and Price still low. (Compared to Southern California anyway) I’m looking at deals analyzing ARV driving neighborhoods. Observing the local habits of these folks. I 100% know what sparks the interest of MRS Homebuyer and know Dads hot buttons as well. In an area with rising values and fast demographic shifts of what the NEW RESIDENTS wish for them self’s but simply doesn’t exist yet in terms of feel and finishes. We are the same. Let’s run the numbers. 1800 sq ft house great bones 3/4 acre lot. Needs love but doesn’t as all intimidate me. Best school district in the state. Downtown and mountain views Equestrian area. Mature trees. Same MLS # as MM$ estate caliber homes. Walking distance to restaurants school and highway close. Oh and a view property. Asking price high 300s. It needs a 1000sq. Ft. Addition of master suite bringing the footage to 2800. 3/3. As far as home features go.... I can deliver a fully functional Death Star of style grace and location efficiently. But... my ARV needs to be in the high 600k realm. Or high 280 per sq ft. Mom wants to be here. Inventory of what I intend DOES NOT EXIST. What could be wrong? Where I live and work this would be the find of the century at this price. Like 1/3 of the price for sure! Well... what I’m encountering is that if I take the leap? Restore the beauty. Fit with the neighbors higher values around me. What I’m really doing is setting the market price. Because appraisals are arrived at by formula vs. form. Getting the appraised value to a place that matches MY ARV where my buyers can be approved to purchase. Any of you have success in this puzzle? How to get the appraised value in line with what the property actually is. Vs. simply what the data shows or condition and style be damned. Your thoughts?