Busting Appraisal Myths with Scott Murphy of D.S. Murphy & Assoc. Artwork

The Perfect Property Podcast: An Atlanta Real Estate Guide

Everything you need to know about Atlanta Real Estate. Drawing from vast industry experience in Atlanta and around the world, Acclaimed Real Estate professional Juli St George presents practical real estate education for the first time home buyer, seller looking to net the most profit and for the seasoned investor. Learn tips and tricks of the trade you need to expertly execute any and every real estate transaction and come out on top. Listen to Juli's network of industry professionals and get real world examples and advice for buying, selling and investing in Atlanta GA. The information on this podcast relates to real estate in GA.

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The Perfect Property Podcast: An Atlanta Real Estate Guide

Busting Appraisal Myths with Scott Murphy of D.S. Murphy & Assoc.

November 17, 2023 • Juli St George

Whether you’re on the buyer or seller side of the equation, having a top-notch real estate appraisal is key. Find out why on this episode of The Perfect Property, when our host Juli St. George welcomes Scott Murphy of D.S. Murphy & Associates. Appointed to the Board of Real Estate Appraisers in 2004 by the governor of Georgia, Scott exemplifies the industry gold standard. He’s explaining why working with local experts is so important and how their understanding of current market conditions, neighborhood data and the accuracy of public records can make the difference between an appraisal that flies and one that doesn’t. Get the data right, and your real estate transaction is on the fast-track. Get it wrong, and the results can be disastrous. There’s a reason D.S. Murphy serves 30+ metro Atlanta counties, deploying a team of 80 appraisers who maintain highest professional standards – from your initial contact to the final product and beyond! If you’re thinking of selling, now is the time to consider a consultative appraisal. Find out which home upgrades tend to pay off and how online real estate platforms (think Redfin or Zillow) differ from actual appraisals. (Hint: The difference is huge!)

https://linktr.ee/julistgeorge

The Perfect Property Podcast

With Host Juli St. George

GUEST: Scott Murphy, D.S. Murphy & Associates

Summary:

What You’ll Learn:

Serious Bona Fides: About Scott’s considerable accomplishments, his firm’s nationwide reach and his commitment to highest professional standards for licensed appraisers.
What Real Estate Appraisers Do:
- Estimate market values for commercial and residential properties.
- Base numbers on actual, real-time market conditions.
- Adjust for economic trends and market realities.
More Than Semantics: Why only licensed appraisers are legally authorized to put a dollar valuation on properties (as differentiated from real estate agents, who base listings on the price point at which they think a property will sell).
A Note About “Zestimates”: Online real estate platforms (think Redfin or Zillow) base numbers on abstract, long-distance, often inaccurate public records.
Why Buyers Hire Appraisers:
- To mitigate risk by determining the value of the home they’re purchasing – and that it aligns with the bank’s standard for securing their asset.
- In refinancing scenarios.
- For clients negotiating divorce buy-outs.
- As a basis for appealing property taxes.
- To establish valuations for purposes of estate planning.
- For complex investment projects.
The Erin Brockovich of Valuation: About D.S. Murphy’s commitment to serving the interests of individual buyers (as opposed to big banks).
Consultation Appraisal: How this overall assessment helps position sellers and advise them on things to do that will maximize their asset’s true value – and sale price!
Peace of Mind: What having a D.S. Murphy appraisal means as a kind of insurance policy when it comes to establishing valuations with lenders, buyers and others.
D.S. Murphy Differentiators:
- Appraisers live near and intimately know their territories.
- Adjustments are based on real, very specific on-the-ground factors.
Calculating Square Footage:
- Basements count (but are considered below-grade space).
- Gross living area is based on areas that are above ground.
- Areas that have lower ceilings, less light, no outside access are understandably less valuable per square foot.
What Constitutes a Bedroom:
- A room of adequate size (typically about 10’ x 10’ or 100 sq. ft.).
- A closet in addition to the 100 sq. ft. bedroom floor space.
- A window – providing a second means of entering or exiting the room.
- A window of adequate size no more than 30” off the ground (to facilitate a firefighter’s entry in case of emergency).
- Ready access to a full bathroom. Not a half-bath! Not through another room!
How About Detached or Unusual Spaces?
- Finished in-law suites, carriage houses, etc. are amenities and of value but are not counted as part of your home’s actual gross living area.
- Separate living areas are useful, but not the same as one contiguous space.
- Lofts are particularly tricky because of their often unconventional layouts.
Do You Own a “Tricky” House? If so, you want to know sooner than later!
All About Comparables: Why they are so important and can be challenging.
Interested in Becoming an Appraiser? Learn about the steps to take if you’d like to become a licensed professional.
A Science AND an Art: Why appraisers aren’t likely to be replaced by AI anytime soon!
What to Look for in an Appraiser:
- Local experience.
- Expertise with myriad property types.
- Advanced credentials (including coveted SRA or MAI designation).
Words to the Wise: Big banks don’t always make the best lenders because of the quality of their appraisers. Be wary of the motivations of discount lenders and those that use “appraisal management companies.”
Words of Warning: A number of appraisers are still using “abbreviated” drive-by, desktop and hybrid protocols that were meant only as pandemic stop-gap measures. The results are generally “horrible” and can be a liability.
All About Upgrades and What Really Impacts the Value of Your Home:
- Kitchens and baths – yes!
- Basics like HVAC and roofs – not so much. Buyers see them as basic.
- Improvements to curb appeal (like landscaping) – yes!
- On trend but thoughtful finishes and paint colors.
- Uniform types of hardwood floors for harmony.
- Quality of appliances should be commensurate with neighborhood standards.
- The post-pandemic market loves pools!
- Finished basements can pay off – but only if you get enjoyment first over time.
Why We Love Trees: Privacy, views, topography and other elements of tremendous value to overall site appraisals.
Is Your Home in a Flood Zone? It matters! Visit www.fema.org and enter your address for the most up-to-date information. Tax records may be outdated!
Airbnb Mania: About both the upsides and downsides of ADUs (Accessory Dwelling Units), their requirements, local laws and use scenarios.

Notable Quotes:

“A lot of people think that appraisers determine value. We don’t. The market … ebbs and flows and we are just trained more than any other profession to analyze that .” (Scott)

“When you go to a lender, they’re not doing an appraisal for you – the buyer. You’re not the client. It’s being done specifically for the lender.” (Scott)

“These things are not cut-and-dry adjustments … We can always tune slightly to accommodate what a typical buyer would think.” (Scott)

“There is no one number any house is worth, but if you do it right it can be a very tight range of value.” (Scott)

“While appraising itself is not subjective, if you’re not trained properly and don’t know the processes it’s very easy to get off-track and have a significant error.” (Scott)

“We need to use a local lender for so many reasons. They’re going to help you so much more than someone who is just an 800 number. We can’t reinforce that enough!” (Juli)

Relevant Links/Further Resources:

Learn more about Appraisal Myths.

Follow our Guest:
https://www.dsmurphy.com/

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