Custom Home Appraisal, Single Family Home Appraisal – Single family homes are usually detached housing, that is on a platted lot. These homes are usually located within a subdivision where lots are subdivided, and each lot owner has fee simple ownership interest. By definition, this type of home is occupied by a single family or consists of one dwelling unit or suite. These homes are ‘detached’ – meaning that they do not share a common wall with other houses, which excludes duplexes, townhomes, and other types of homes.

LOGAN has a residential appraisal team that specializes in the valuation of homes in resort residential areas. Often, these homes are owned by US citizens that require financing, property trusts, divorce settlements, or for the purchase or sale of such properties. The Mexico and Costa Rica offices generally focus on this type of work, as the countries have a significant tourism draw – and have tourist and vacation cities that attract foreign, second home buyers.

Some of the resort cities in both Mexico and Costa Rica are growing quickly – and have benefitted from the new master planned community concept which is taking hold in Latin America. Such communities provide increased security, superior infrastructure, and a high level of amenities and maintenance. Most of the appraisal work completed by the LOGAN residential valuation team is located within these master planned communities.


Cottage – typically a four-room home, with two rooms on each side of a main corridor.

Bungalow – medium or large freestanding home in the suburbs.

Villa – large home that can be used as a retreat or vacation home. Usually found in suburbs or a vacation location, on a large lot.

Mansion – a very large home on a very large lot or estate. Usually, mansions have many more rooms than a typical home, that include specialty rooms.

Approaches, Relevance

Cost – the cost approach is relevant to the valuation of custom homes as a supporting method to value. This is estimated using cost manuals that are available in the market and through conversations with builders and market participants.

Sales comp or market approach – this is the principal method for valuing single family residential assets. Market data is difficult to gather in Latin America, usually this information must be gathered first-hand.

Income capitalization – this may be a supporting method to value as homes are sometimes rented and the value is supported by this income. In tourist markets in Latam, this figure may be skewed and hard to pinpoint as occupancy varies depending on the management of the unit. In short, some units have higher occupancy, and are rented on a nightly or weekly basis, with competent management.

DCF – this method is not typically employed with single family residential assets.

Value Impacting Factors


Social trends such as demographics, population migration, and birth and death rates impact the following: employment and wages, price levels, costs, and available land. Also, inventory and occupancy rates, and disposable income.

Economic conditions – unemployment, inflation, growth rates

Governments laws and regulations – zoning, taxes, building and health codes. National, state and local police policies.

Environmental status – rivers, mountains, lakes, oceans, and other geographic barriers.



General location – what country, city, and municipality is the property located.

Specific location – neighborhood, master plan, and location within the community

Size – the measurement of the property and site

View – views can be of golf courses, lakes, the ocean, beaches, and other appealing elements.

Building class – the level of construction employed to build the property. Class A is considered to be the highest level.

Amenities – neighborhood centers, golf courses, shopping centers, and other services that are not located on the property itself.

Important Inputs

Comparable sales information – difficult to gather in Latin America due to the lack of MLS systems, and tendency to under-report sales values to avoid taxes. Many comparable sales are gathered through conversations with market participants, and offers from real estate brokers

Inspection information – the physical inspection of the property is key. Appraisers visit the subject property and perform a ‘walk-through’ of the property, taking photos, measuring areas, and verifying the general quantity of the rooms, and quality of finishings.

Valuation Steps

1. Identification of the problem to be solved

2. Scope of work determination

3. Data collection and property description

4. Data analysis

5. Land valuation

6. Application of the approaches to value

7. Reconciliation of value indications and final value opinion

8. Report of the defined value

Recent Trends

– Demand for additional residential space – fueled by pandemic and restrictions

– Influx of foreigners and retirees migrating to Latin America

– Master plan community growth in touristic markets in Mexico and Costa Rica


Form Reports – Fannnie Mae, Freddie Mac, FHA, Narrative Format (shown below)

1. Value impacting considerations – summary.

2. Purpose, scope, limitations of the report.

3. Land description.

4. Improvement description.

5. Scope of work.

6. Highest and best use.

7. Approaches to value.

8. Reconciliation.

9. Certification statement.

Notable Markets



San Andres

Santa Marta


Cabo San Lucas

Cancun, Riviera Maya


Puerto Vallarta

Playa del Carmen


Lima, Santa Cruz Lima, Miraflores

Lima, San Isidro

Central America





Bocas del Toro

Punta Mita

Notable Communities