Solving the appraisal puzzle

Coldwell Banker

Best Realty Broker Associate Clint Freeman – Housing prices are on the rise in Ridgecrest. The average sold price of a single-family home in March 2020 sat at $237,267. Last month that price was $275,957. Some sellers view this period as a golden opportunity to pull all the stops and receive the highest possible price. No blame there. However, one must be careful not to fall over the high end. Keep in mind the home needs to pass an appraisal if a mortgage lender is involved.

Appraisers derive their measuring guidelines by the lenders that hire them. For most mortgage sales an appraiser will be subject to the following guidelines when deriving the value of a home: 1) one mile radius from the subject property. 2) 10 years forward and 10 years back in age from the subject home; 3) 30% up and 30% down in square footage from the subject property’s living space, and 4) the past three months of sales.

From here an appraiser will select the closest three comparable sold homes and look carefully at the sold dollar per square foot amount. In the event the above guidelines do not result in enough like-kind comparables, the parameters can be expanded until enough are found. Keep in mind an appraiser carefully considers living space and what is defined as living space. Living space must have electric and particularly some type of heating and air ducting installed.

1.00 months of inventory in Feb. 2022

The local market continues to move in a seller’s market. Units of sold homes continue to outpace homes presently for sale. The supply of active site-built homes sits at 42 units. The number of homes in escrow: Jan 96; Feb 106; Mar

In February, 64% per cent of homes sold for list price or more. Sold homes vs. active homes moved down from 1.07 months in January to 1.00 months in February.

RIDGECREST FACTS AS OF MARCH 2022

To date there are 42 homes on the market ranging from $99,900 to $525,000.

Past three months’ price per square foot average of sold single-family homes: College Heights $186; NW $163: NE $170; SE $157; SW $173; RC Heights $167

CALIFORNIA FAST FACTS

California median home price: $765,580; Lowest median home price: Lassen $259,000; Ridgecrest $252,000; Highest median home price by region: San Mateo $2,000,000 (Source C.A.R)

Story First Published: 2022-03-25