Luxury real estate is defined differently in different markets because property values, median resident income, and area development vary depending on the metro area. Lenders require an appraisal on a luxury home before they’ll approve a mortgage loan because the property is the underlying asset that serves as collateral for the loan.
The Luxury home appraisal process
The luxury home appraisal process is very similar to that of appraising a standard single-family residential home. However, if the appraiser is not familiar with the specialized and custom features of a luxury home, he or she can not properly analyze the benefit and/or value added by these features. Luxury homes typically have higher cost, natural stones, woods, historical features, custom lighting, energy efficient items, etc. To identify these features, an appraiser must be well versed and familiar with identifying the latest construction trends as well as identifying the quality and benefit added by these custom features.
How do you identify an appraiser that is qualified for luxury homes?
Experience plays a key role in identifying an appraiser qualified to appraise a luxury home. An appraiser that has been exposed to a market over several years understands those custom features that provide a favorable appeal to the market. Additionally, a seasoned appraiser will have been exposed to countless hours of continuing education, many of which focus on construction design, materials, and efficiency.
Anyone that is involved in real estate knows that location is a key component of value. An appraiser who specializes in luxury home appraisals must have a great relationship with the real estate agents and brokers that serve the location of those luxury residences. Find out what relationships the appraisers has with local realtors that specialize in luxury homes. Many times, you will find these realtors will recommend qualified appraisers as they have built relationships with appraisers who call verifying sales data and attributes.
Gardiner Ray, LLC has had significant experience in valuing luxury single-family homes. While a luxury home is a somewhat relative to its environment, the following list provides a small example of the types of homes we have had experience in valuing. The values of these homes ranged from 2± Million to 30± Million.
Luxury high end properties
Allen, Frisco, Fairview, McKinney, Plano, and Prosper luxury homes
3 +/- Acres estate in Plano, 7,600 +/- SF new construction residence
1.2+/- Acre lot in Frisco, 15,800 +/- SF, 5,600 SF +/- Basement, with Creek and Greenbelt view
1.6 +/- Acre estate in Fairview, 6,400 +/- SF, new construction residence
6.3 +-/ Acre Estate in North Dallas, 12,900 +/- SF, 2,000 +/- Basement, 3,600 SF +/- Guest House
Southlake/Westlake
1+/- Acre lot, 8,500 +/- SF residence
+/- Acre lot, 10,800 +/- SF, Modern construction
2+/- Acre estate, 17,800 +/- SF new construction with water view
Preston Hollow
1 +/- Acre lot, 12,400 +/-existing Mediterranean residence
13,400 +/- SF renovated residence on 0.95+/- Acre lot
1.5+/- Acre estate, 12,600 +/- SF, 1,300 +/- SF Basement, with creek view
Highland Park
6,100 +/- SF renovated modern home in Highland Park on 0.45 +/- Acre lot
12,000 +- SF, 1 acre lot (double lot) in Highland Park on Beverly Drive,
Fort Worth
3.68 ± Acre lot, 7,551± SF, in Montserrat
Lubbock
Gated Addition, Mediterranean Estate, 6,100 SF, New Construction with cost exceeding $2,000,000
Luxury New Construction, Modern Style, 5,000 SF on 0.26 acre lot
2.7 acre Estate, Tudor Style, 8,400 SF and built in 2005