Uncovering the Value of the White House: Notes From an Appraiser 

The White House is one of the most remarkable historic buildings in the world, and its popularity shows it. Over 2 million tourists visit each year to explore the halls and learn American history. But it’s more than just an impressive-looking tourist destination.  

How much more, you ask?  

With over 100 rooms, 35 bathrooms, a 140-guest commercial kitchen, in-house library, dentist's office, indoor and outdoor pools, sports courts, and more... how would a real property appraiser even begin to assess its value? 

We asked one appraiser just that, and they scoured the details until they turned red, white, and blue. 

 

The White House’s Estimated Opinion of Value 

Turns out, the People’s House is more than just a house: it's a National Park. So, while that half-a-billion dollars may be burning a hole in your wallet, it couldn’t be sold in the free market unless a law was passed to do so.  

Still, given some extraordinary assumptions, the place with all its incredible indoor and outdoor amenities could be worth over $450 million. So, how do our valuation methods come into play to find this figure? Let's break it down. 

Multiple Appraisers Need To Be Consulted  

If this were a real-life appraisal, multiple appraisers would be consulted to get the most accurate estimated opinion of value, and to comply with the Uniform Standards of Professional Appraisal Practice (USPAP).  

Ideally, this would require valuations of the land, building, art, furniture, vehicles, the income stream, and all of the unique amenities. We would need at least three kinds of appraisers to accomplish all this: 

• A real property appraiser 

• A personal property appraiser 

• A business valuation appraiser 

What Features Add to (& Reduce) The White House’s Value? 

The White House is far from your average home. Here’s a breakdown of the amenities (a few of which might surprise you!). 

Amenities That Have a Positive Effect on Value 

#1 - Beehive  

The U.S. may not be run by a monarchy, but she does have a queen — bee, that is! The White House beehive, located on the south lawn, is home to over 70,000 bees. They were originally brought on by the 2009 Obama administration. 

President Obama also formed a Federal Pollinator Health Task Force to promote the protection pollinators. This federal task force is an intangible asset to this aspect of the White House and would have to be noted in an appraisal report. The goals of this task force are to: 

1. Reduce honeybee colony losses  

2. Increase monarch butterfly populations 

3. Use public and private actions to restore and enhance land for pollinators. 

There are four total beehouse boxes, and 8-10 frames used to hold honeycomb within the boxes. The bees are protected by a windscreen, and their own security service! Because the beehouses are considered real property, they can be appraised by a real property appraiser, but would probably require the assistance of a master beekeeper, to meet the USPAP’s Competency Rule. 

#2 - The Flower Shop

 

Where there are pollinators, there must also be flowers! Another unique feature in the White House is its flower shop. The shop supplies all the flowers for both the personal residence and all special events.  

The presence of flowers on this property is an intangible asset, so how can it be measured? 

One way is by making an extraordinary assumption that the presence of flowers on the property reduces the high levels of stress that come with running the federal government. This could also be true for workers, volunteers, politicians, and visitors on the property.  

And to determine the intangible value, this asset would need to be appraised by a business appraiser. 

Amenities That Have a Negative Effect on Value 

Though the White House hosts an incredible number of unique and impressive assets, it is also home to some unfortunate flaws that could diminish its value. 

#1 - Pet Stains on Carpets  

Man’s best friend? Or fiend? With pet stains throughout the residence and private offices, a few areas would need some serious touching up, or its value would take a hit. 

In other words, our final value is dependent on the hypothetical condition that carpeting is either removed or deep cleaned to rid them of pet stains. That would include: 

• Required carpet removal and new carpet installation in the President’s bedroom, dressing area, and private sitting room; and 

• Required carpet deep cleaning in the Oval Office, West Sitting Hall, and center hallways 

#2 - Inferior Wireless Network  

With a building this old, there are bound to be some aspects that are a little outdated or in need of repair. And in an appraisal report, getting a detailed history matters.  

The White House began construction in 1792 and completed in 1880. But two fires caused a few setbacks:  

• The British Attack burned down most of the property in 1814. It reopened in 1817. 

• A little over 100 years later, in 1929, a second fire took place in the West Wing. 

The largest-scale remodel was completed in 1952 by Harry Truman. And since then? No major remodels, and no planning for a large installation of wireless networks. Because of this, there are many Wi-Fi “dead zones” in the house.                                                               

All this to say: this is an old building. And its history can be used as factual support for why functional obsolescence is present, which can include (but isn’t limited to) the absence of modern services. So, using the cost approach, some value will be subtracted. 

Final Conclusion of Value 

Appraising the White House is a big, daunting, multi-faceted job. Even with a team of experienced appraisers, there are nearly endless angles to explore and considerations to be made. For our conclusive opinion of value, three approaches to value were used:  

1. The Sales Approach.  Not entirely applicable since the White House cannot be sold in the free market. Still, with some extraordinary assumptions, we can value the property at $461,737,060. 

2. The Cost Approach.  Reported at $100 million.  

3. The Income Approach.  Reviewed, as there are 12 tenants on the property. However, the market rent doesn’t apply as most of the tenants are part of the U.S. Government.  

Because appraisers always look for highest and best use, we will conclude our estimated opinion of value with the results of our sales approach. 

Learn More About a Career in Appraisal With The CE Shop 

If you’re analytically-minded, numbers-oriented, and enjoy a deep dive into all the history and intricate details of a property like this one, you might make a great real property appraiser.  

Explore other special property appraisals (like Hogwarts!) in our Appraisal Essentials blog. Because we think your appraisal education should be just as fun and interesting as the job.