The Wall Street Journal reached out to RAC appraisers Michael Hobbs and Jonathan Miller for their valuation insights on high ceilings in new luxury towers.
Wall Street Journal August 11, 2016 For Ceilings, What a Difference a Foot Makes
Buyers of luxury condos will pay a premium for ceilings that are even just a foot higher than the standard, but tall rooms pose challenges
While ceilings are rising throughout new luxury towers, the tallest ceilings are typically found in the highest, most expensive apartments, says Michael Hobbs, the owner of PahRoo Appraisal & Consultancy in Chicago.
High ceilings are often found in apartments that offer other luxury amenities, such as tall windows and concierge service, which bolster their value, says New York appraiser Jonathan Miller—but not in every case.
Appraiser Shortage Could Gum Up the Works at Mortgage Lenders
American Banker, May 20, 2015
Mortgage lenders are facing a potential threat to their business that has nothing to do with new regulations or the uneven economic recovery: a persistent shortage of home appraisers.
Since the height of the housing boom in 2007, the number of individuals certified or licensed to do home appraisals has declined by 23,000, or 28%, according to the Appraisal Institute.
It’s not a crisis — at least not yet — but with older appraisers retiring and fewer and fewer college graduates entering the profession, some industry observers say that, in five to 10 years, there won’t be enough appraisers to handle the volume of home sales. For lenders, that could mean higher appraisal fees and long delays in closing loans — at a time when technology could be speeding up the process.
“In five years the banking industry will not have many appraisers left to do their mortgages,” said Rick Hiton, the owner of the Chicago appraisal firm Rick Hiton & Associates.
See entire article here
RAC member Tim Lynch, CRP writes in:
“Received the WERC directory earlier this week and noticed that it was about the same size as last year’s directory. However, upon further investigation, I noticed that there were 30 more pages for the brokers and 27 fewer pages for the appraisers in this year’s directory as compared to last year’s directory (did not include pages including listings outside the US).
There are likely several reasons as to why this occurred but I did not look into it any further than the actual page count.”
The flurry of discussion erupted between RAC members from Tim’s quantification of something fairly abstract: was it worth it to be in this directory?
Some of the most basic valuation questions outside of a property can provide an “ah-hah!” moment like this. The ability to provide that simple moment is often the product of significant valuation experience, something all RAC members have in common.