Intro to Log Home Appraisals

Introduction
While log homes appeal to many home buyers, determining their value presents a challenge for appraisers and lenders. Log homes comprise a specialized segment of the housing market, making valuation and comparisons with other types of housing difficult. Because many appraisers and lenders have limited experience with log construction, they turn to comparable value properties to establish value. But a comparable value approach can be misleading unless the appraiser understands how to select comparables.

In cases where the appraiser or lender is uncertain, the final appraisal may be overly conservative. As a result, the potential home buyer may be unable to meet mortgage or construction loan requirements. Not only do homeowners lose an opportunity to own the type of house they desire, the lender loses a potential loan, the log manufacturer loses a potential sale, and the local construction industry loses job and material sales opportunities.

This information is designed to familiarize you, the appraiser or lender, with log homes included styles, construction and cost variables, market trends and points of comparison with other types of housing. It is designed to help you accurately establish the value of log homes.