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There's a lot of things that affect value in an appraisal, location being a primary determinate. It's location, not only within the city, but location within the neighborhood. You have site factors that will affect value. 

 

 

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Gary:  
            
Hello, my name is Gary Carpenter, with the MRG Realty Group at CBS home real estate, and I'd like to thank you today for coming and watching our video. We're here today with Greg Mitchell, with Mitchell and Associates, to talk about appraisals. 
 
Greg:     
          
Hi, I'm Greg Mitchell. I'm the president of Mitchell and Associates. We're an multi-disciplined real estate appraisal firm covering eastern Nebraska and the western part of Iowa. We specialize in valuation and consulting for residential, commercial, and industrial properties, and have been in existence since 1947. 
 
:43 WHAT EFFECTS HOME VALUES IN AN APPRAISAL?
 
There's a lot of things that affect value in an appraisal, location being a primary determinate. It's location, not only within the city, but location within the neighborhood. You have site factors that will affect value. Negative things might be traffic, perhaps proximity to commercial or industrial entities. Positive things certainly are, proximity to parks, or other amenities. Well landscaped streets certainly have a positive effect on value. Other aspects that affect value, certainly fall into the home's quality, the home's design, the age of the home, the amount of updating, particularly with kitchens and bathrooms, size, number of bathrooms, basements, basement finishes, garages and amenities. Within certain neighborhoods there are going to be certain expectations within a neighborhood, and clearly as a buyer or seller, one wants to be aware of what those market expectations are. 
 
1:58 WHAT IMPROVEMENTS CAN I MAKE TO MY HOUSE TO GIVE ME THE GREATEST RETURN?
 
Maintaining the property, making sure the property's in always good condition, that the short-wide components that are wearing out are replaced on a schedule. Secondly, interior finishes are done tastefully and in a manner that is consistent with what market expectations are. You hear a lot today about Pottery Barn colors, but, again, markets are dynamic, and those things will change. Kitchens and bathrooms seem to be the two key things that buyers tend to focus on, and with that, those are areas that one would certainly want to look at if they're trying to enhance value or marketability. One of the more cost-effective means of enhancing value, always has been, and should continue to be basement finish.     
2:54 IS LANDSCAPING A GOOD INVESTMENT? 
                       
Landscaping as a direct return on investment, is really not measurable. Landscaping becomes a factor that enhances appeal and marketability. So, from that aspect, you always want to have a good first impression, and landscaping certainly helps that. Additionally, if landscaping along your street ... If people are taking very good care of their properties, if they are keeping their landscape up to date all along the street, it elevates the value of all the properties down there. In terms of saying, "Putting ten thousand dollars worth of landscape will return ten thousand dollars," or some other number in terms of value directly, there's never been a way to measure that, but at the same time, it certainly enhances appeal and marketability. Again, if it's done all along the street, particularly, and through the neighborhood, as a matter of fact, then it's the old thing, "Rising tide raises all ships."   
 
4:07 GREGG GIVE US A LITTLE INSIGHT ON THE OMAHA MARKET
 
Markets are always changing, markets are always dynamic.  We went through a period where we had a buyer's market for many years, from 2008, really until the middle of 2011. We went through transitional markets from '11 to '13, and since '13 we've been in a seller's market where inventories are short. So, we saw values drop during that down period, stabilize during the transitional period, and now we're seeing values rise in many markets. Never consistent, because different neighborhoods, different market segments always behave differently. So, as you're looking at property, really rely on your buyer agent to provide good solid advice in terms of what they're seeing in that particular market, and as they provide counsel to you, in terms of making that offer on that particular house.  
 
Gary:  
             
Thanks again for coming and watching our video blog. Again, if you're thinking of buying or selling real estate any time now, or in the future, please call us at 402-680-7000, or email us at info@MRGomaha.com.