Real Estate Appraiser Guidelines - Part 4 ARCHITECTURAL STYLES AND FUNCTIONAL UTILITY It is essential for an appraiser to have a working knowledge of building design and construction. Good basic design of both interior and exterior has a decided effect on the marketability of real estate. There is no substitute for appropriate materials and proper proportions and scale. The appraiser should be aware of imitations and new plastic replacements.
To achieve maximum value, architectural style and design should be related to the site. A typical stable neighborhood should be improved with homes of approximately the same size, age and style. A house that has an architectural style extremely foreign to its surroundings tends to encounter difficulty when offered for sale.
Or a home meets resistance in the market because of its style, which places it within a definite age group. Thus, if a certain style of architecture has lost its appeal because public taste has changed, this trend will have an adverse effect on value. Both real estate brokers and appraisers must be familiar with home styles and know the effect on value of misplaced styles. The appraiser must also be alert to resurgence of older properties in public acceptance.
This section: contains brief descriptions of various architectural styles in single family homes; explains how to determine quality of construction; and defines functional utility and its effect on marketability.
Architectural Styles
> Colonial. Cape Cod and Cape Ann styles are: generally quite small in size - minimum with good taste; symmetrical-windows balanced on both sides of front door; either one or one and one-half stories with little head room upstairs; fairly steep gable or gambrel roof covered with wood shingles; and exterior of wood siding.
> New England Colonial. A square or rectangular, box-like structure having: maximum usable space; symmetrical windows balanced on both sides of front door; either two or two and one-half stories; gable roof covered with wood shingles; exterior of wood generally painted white; and impressive front entrance usually with transom fan of glass above the door.
> Dutch Colonial. A moderate-sized home generally not more than 50 feet wide, with a symmetrical front having: an entrance at the center, balanced by the windows; low-sweeping gambrel roof; exterior generally of stone; and either one and one-half story with dormer windows or two and one-half stories with dormer windows.
> Georgian and Southern Colonial. These styles have elaborate front entrances with plain or fluted columns; are generally of brick or wood; have prominent gabled roofs, often hipped; are very symmetrical; require large plots of land; large scale, not suitable for a small house; and either two, two and one-half or three stories.
> English Elizabethan. This style has gothic refined lines with molded stone around windows and doors; generally of brick, stucco, or stone; steep pitched roof, covered with slate or shingle; usually leaded metal casement windows; and requires a large building site.
> English Half-Timber. This style has protruding timber faces with stucco between the faces; lower story of heavy masonry; steep pitched roof; generally two stories; and requires a large lot area.
> Regency. A generally symmetrical style with front entrance in center; exterior of brick or stone; shutters on each side of windows; low hipped roof; two stories in height; and octagonal window on second floor over front door.
> French Provincial. Usually a large house on a sizable plot, masonry exterior walls with very high roofs; large high windows with long shutters; and one and one-half or two and one-half stories.
> French Normandy . Generally has turrets at entry; walls of brick or stone; unsymmetrical; and steep pitched shingle roof.
> True Spanish. Enclosed patios; red mission tiled roof; wrought iron decorations; and stucco walls (usually white).
> Small Spanish. Stucco exterior; flat composition roof with mission tile trim in the front; suitable for small lots; no patio; and one story only.
> Monterey Spanish. Two stories; stucco (generally white); red mission tiled roof; second story balconies; and decorative iron railings.
> Modern and Contemporary. Generally one story; usually flat or low pitched roof; often on concrete slab; large amount of glass; and indoor/outdoor living.
> Bungalow or Ranch House. One story; stucco with wood trim; often on concrete slab; shingle or shake roof; low and rambling; generally attached garage; and indoor/outdoor living.
Building Quality
One of the most important reasons for inspecting a property is to determine its quality of construction and condition. The appraiser must be knowledgeable as to structural details of buildings. All exposed portions of a building should be closely inspected to ascertain the materials used, the present condition, and the type and quality of construction, which may be classified as follows:
A. Low quality.
1. Competitive low cost house which does not exceed the minimum building codes.
B. Fair quality.
1. Plain and inexpensive finishes on both interior and exterior.
2. Cheap quality finish hardware, lighting fixtures, and heating.
3. Generally erected in areas of low purchasing power.
4. Typically, stucco exterior, concrete slab floor, composition roof.
C. Average quality.
1. Meets VA and FHA standards.
2. Usually purchased by persons of moderate income.
3. Medium standard of construction with some low cost refinements.
4. Usually of stucco exterior, hardwood flooring, composition roof or shingle.
5. Finish hardware, lighting fixtures and heating of average quality.
6. House found in large tract developments.
D. Good quality.
1. Good architectural design, workmanship and materials.
2. Stucco walls with wood and masonry trim, hardwood floors, shingle roofs.
3. Usually contains two bathrooms, forced air furnace or equal heating, good quality lighting fixtures and finish hardware.
4. Usually has extra built-in equipment in kitchen.
E. Very good quality.
1. Generally, custom designed by architect.
2. Home contains many extra features.
3. Stucco walls with extensive wood or masonry trim, hardwood flooring, shake roofs.
4. Two or more bathrooms, forced air heating, very good quality finish hardware and lighting fixtures.
5. Custom fireplaces.
F. Excellent quality.
1. Custom designed by architect.
2. Extra features are of the highest quality and design.
3. Stucco walls with redwoods or cedars or other fine woods, stone trim, hardwood, marble and custom carpet floorings, clay tile, slate roofs, copper gutters and so on.
4. A bath with each bedroom, walk-in closets, zoned heating, special wood finishes such as teak, cherry, walnut, etc., designer lighting including recessed art lighting.
5. Custom fireplaces, custom wood libraries, bars, butler’s pantries, granite or marble counters in baths and kitchen, gourmet appliances.
FUNCTIONAL UTILITY Good architecture is concerned with room layout and functional utility as well as exterior style. A functional analysis of a property measures the conveniences and economy in the use of the property. The combined factors of usefulness and desirability have an effect on a property’s marketability. The degree of its functional utility is important in any consideration of its marketability. Thus, marketability is the ultimate test of functional utility. Functional Utility Checklist
A. Building.
1. Living room.
a. Adequacy of floor and wall space for proper placement of furniture.
b. Circulation - should not have to pass through long living room to reach other parts of the house.
c. Fireplace should be away from the traffic flow.
d. Wall spaces - adequate for furniture arrangements. 2. Dining room or area.
a. Ease of access to kitchen.
b. Size of room or area governed by overall size of house.
c. Best if room is nearly square. 3. Bedrooms.
a. Master bedroom should be of adequate size (minimum 10' x 12').
b. Other bedrooms (minimum 9' x 10') .
c. Cross ventilation should be provided.
d. Located away from family areas and kitchen for privacy.
e. Should not have to go through one bedroom to enter another.
f. Closet space should be adequate (minimum depth 2 feet; minimum area 6 square feet).
g. Proximate to full bath facilities. 4. Kitchen.
a. Workspace should be ample and efficient in plan.
b. Equipment should be centrally located to eliminate unnecessary foot travel.
c. Walls, ceilings and floors should be of easily maintained materials.
d. Adequate provision should be made for proper lighting and ventilation.
e. Kitchen should be conveniently located in relation to dining areas and family room.
f. Kitchen should have an exterior entrance.
g. Laundry facilities should be adjacent to kitchen. 5. Bathrooms.
a. Proper location with respect to other rooms.
b. If only one bathroom exists, it should be located off the central hall.
c. Bathroom should not open directly into kitchen or living room.
d. Adequate ventilation - exterior window or automatic exhaust fan is necessary.
e. Floors, walls, and ceilings easily cleaned and maintained. 6. Closets and storage.
a. At least one clothes closet per bedroom.
b. Adequate linen closet space.
c. Storage closets should be centrally located.
d. A storage area should be provided near the laundry equipment.
e. Exterior storage necessary if there is only a carport.
B. Site.
l. Construction should be related to the size of the building site.
2. The house should be so located on the land that it relates to the building site or “belongs.” 3. Adequate front, rear and side yards are necessary for light and privacy. Yards may be clustered in planned unit developments.
4. A private service yard for drying clothes and storage of refuse should be convenient to the kitchen.
5. Entrance to the garage should be convenient and readily accessible.
6. Proper landscaping.
7. Recreational and garden facilities.
8. Adequate yard improvements.
Guidelines for Considering Physical Characteristics of Real Property for FHA Insurance Purposes A. Visual appeal of property. How well will the property as a whole retain its market appeal?
1. Exterior design of structures.
a. Visual appeal based upon the probability of continuing market acceptance.
b. Certain architectural styles are short-lived in their acceptance and become obsolete. 2. Setting.
a. Measures the property’s appeal in the market because of terrain, accessory buildings, walks, landscaping.
b. The dwelling and surroundings should present a pleasing and unified composition. 3. Interior design of dwelling.
a. The interior design should exhibit simplicity of treatment, harmony in proportions and refinement in design.
b. Interior permanent features should be up-to-date and of adequate construction.
B. Livability of property. The degree of usefulness, convenience and comfort which the property affords is determined by:
1. Site utilization.
a. Considers all aspects of the site and its arrangements as these affect the livability of the entire property.
b. The lot characteristics including size, shape, topography, orientation and natural advantages are considered.
2. Dwelling space utilization. Consideration is given to the size and efficient distribution of space within the structure.
3. Room characteristics. Consideration is given to the size and proportion of the rooms in relationship to the overall area of the dwelling. The following factors are considered:
a. Room orientation.
b. Circulation.
c. Privacy.
d. Closet and storage space.
e. Kitchen efficiency.
f. Service facilities.
g. Insulation.
C. Natural light and ventilation. The effect of natural light and natural ventilation on the desirability, livability and healthfulness is considered.
1. The proper amount or ratio of natural light to room area should be maintained.
2. Ventilation of all rooms is studied to measure its effect on desirability of the dwelling.
3. Cross ventilation desirable in all bedrooms.
D. Structural quality. The quality of structural design, materials, and workmanship is
determined for the dwelling. The component elements to be considered are as follows:
1. Foundations.
2. Wall construction.
3. Partitions.
4. Floor construction.
5. Ceiling construction.
6. Roof construction.
E. Resistance to elements and usage. A determination is made as to the resistance of the dwelling to the effects of weather, decay, corrosion, fire, and deterioration. Consideration is given to three categories:
1. Lot improvements.
a. How is the soil protected from erosion?
b. Is the land properly graded so that the structure is not damaged by water?
c. The yard improvements such as walks and walls should be of adequate materials.
2. The building exterior. Analysis is made with reference to the resistance of the exterior of the building to the effects of the elements.
3. Building interior. Consideration is given to the resistance of interior surfaces and materials to determine wear and tear and deterioration.
F. Suitability of mechanical equipment. Measures the extent that the equipment contributes to the desirability and appeal of the dwelling through convenience, economy, and comfort. Consideration is given to:
1. Plumbing system.
2. Heating system.
3. Electric system.
4. Supplementary equipment. |
