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Resale Value Print E-mail

What is the Resale Value

of an American Ingenuity Dome?

Since very few of American Ingenuity’s clients have sold their domes, we cannot really answer this. However if our clients ever think they might sell their dome, we recommend that they build at least a 40' (3 bedroom, two bathroom size). Plus the resale value of a dome or any other home, is improved when it; a) matches the neighborhood in size and value, b) exhibits quality construction, c) is landscaped well, d) offers advantages over other homes.

When Glenda has an open house almost every time she has someone who wants to buy the domes. Why we think this occurs so often is that once the dome is built the buyer can see it, touch it, feel it and look at the low energy bills. The perspective buyer does not have to select a floor plan, buy land, obtain a building permit, obtain construction financing & permanent financing, put in a foundation, find and coordinate subcontractors, etc. To put it bluntly they do not have to go through all the construction phases to get a house built.

Until recently there has been little information available regarding the resale value of the American Ingenuity domes. No one wanted to sell.

In the summer of 2005, an Ai dome owner was moving out of state so he had to reluctantly sell his special dome. His 40’ geodesic dome home linked to a 27’ two car garage was sold in Upstate South Carolina, near the intersection of I-85 and I-26, within a 30 mile radius of the metropolitan Greenville/Spartanburg, SC area.

The dome had 1,382 sq.ft. of living space, while the garage and attic added 680 sq.ft of space. The sale netted $189,000, not including the value of the land.

Applying the local construction cost for typical, new residential dwellings and for garage structures, a new conventional residence with the same square footage would have cost $167,000 to build.

The dome sold for approximately 13 percent above the current conventional residential construction costs yet it was 5 years old. In addition, the dome sold in four months and there were other potential buyers disappointed that they arrived too late.

 

Fannie Mae Guidelines for

Estimating Market Value of Non-Traditional Housing

The following information came directly from the FANNIE MAE SELLING GUIDE: SECTION 404.01 - CONFORMITY TO NEIGHBORHOOD

In the appraisal and underwriting process, special consideration must be given to properties that represent special or unique housing for the subject neighborhood. Non-traditional types of housing-such as earth houses, geodesic domes, log houses, etc.-are eligible for delivery to us, provided the appraiser has adequate information to develop a reliable estimate of market value.

It is not necessary for one or more of the comparable sales to be of the same design and appeal as the property that is being appraised (although appraisal accuracy is enhanced by using comparable sales that are the most similar to the subject property). On a case-by-case basis, both the appraiser and the underwriter must independently determine whether there is sufficient information available to develop a reliable estimate of market value.

 

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