Style market resistance

Discussion in 'Urgent - Help Needed' started by Lobo Fan, Sep 24, 2011.

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  1. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    I recently looked at a new super green house that is constructed of CMU block with a galvanized metal roof. It is the newer industrial style with exposed steel beams, bare concrete floors, etc. It is in an area of mostly custom pueblo style homes (Corrales for the locals). I could not find a similar comp going back 2 years in the Corrales area.

    I am not sure how many people would appreciate this style of home. I think it is pretty cool, and I love all the green features (LEED Platinum). I looked for other non-Pueblo style designs and could not find anuthing that would tell me anything. They are all pretty traditional, (Northern NM style for example) but they still have the SW look. This house looks like a commercial office building.

    Any ideas on how to accurately measure any market resistance?
     
  2. Terrel L. Shields

    Terrel L. Shields Elite Member

    66
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Dangifino...but I was just thinking about Maxie Anderson, the balloonist who died in Germany years ago. He ran a mining company in NW part of Albuquerque and the office there was very New Mexican in construct. I really liked the office. I think they called it Ranchers Exploration or something like that...I interviewed for a job there once. His engineer was a jerk. I remember that much. Maxie's mother lived in Siloam Springs and I've appraised property for some of that family.
     
  3. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    You may not be able to quantify it. I would start by calling as many market participants, investors and brokers/agents, that I could stomach and simply ask them. After you get a feel for which way the winds are blowing I would use the style in the reconciliation, refraining from quantifying it with a specific adjustment.
     
    Last edited: Sep 24, 2011
  4. Doug DeMars

    Doug DeMars Senior Member

    0
    Mar 20, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Lucky you Lobo...

    Three possible ideas...

    A. If/when it sold before...can you extract a market adjustment among it unrelated peers (i.e. "regular" comparables within its sub-market)?

    B. Find another "atypical" dwelling that stick out like a sore thumb...any discount/premium noted for such a variance?

    C. Throw sticks in the air and depending upon how they land...determine market value.
     
  5. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Thanks, it is new construction so A is out. I found as atypical as I could and threw it in as a comp. I went to another neighborhood where I have seen this type of construction before and tried to extract something. My gut tells me that the typical Corrales buyer will be less than thrilled with the style. But that is hard to explain.
     
  6. prasercat

    prasercat Senior Member

    0
    Oct 24, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    "Accurately measure" isn't going to happen. Whom owns this building? What is their occupation? How old are they? Their approximate education level? etc., Does this person fit the area demographic? - I'd guess they fit into the demographic as well as the home fits into the neighborhood. Is this a beginning of a trend for a new demographic? What does a typical buyer now want in a property there? Have energy prices skyrocketed in the neighborhood and this serves as a special utility that offsets the problem? How sheltered is the property from the appearance of contrasting properties? - are they side by side juxtapostions or each house has green spaces around it or on acreage?

    I would look at recent remodel work in the neighborhood. Is their evidence of green initiatives or design features in many of those remodels? Does nobody care about "green" except this one owner? In what ways does the home deviate in utility from typical homes in the area? Construction materials, room layout, sizes of rooms, ceiling heights, quality level of materials and how does it support or differ from the type of design and utility being demanded in the neighborhood. Is the improvement appropriate for the lot upon which it sits - does the lot support the home's utility (southern exposure, privacy, etc.)

    Get opinions from realtors (if it was or is listed) or talk to the neighbors if they are outside and get their opinions as to what they think are the positive elements and negatives and whether they would consider buying one - if not, why not. I would explain that in your appraising work, you always seek to understand how the buyer "thinks" about a property.

    The adjustment (one is likely) will be a judgmental and based upon a detailed discussion of the property answering a number of the questions indicated and maybe some others.
     
  7. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    8
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    Do you have homes constructed of Rasta or Eterna block in your area? They are very energy efficient and market reaction to those might be an indicator. Although after they get the exterior stucco on them they don't look any different than stucco frame houses.
     
  8. USPAP Compliant

    USPAP Compliant Elite Member

    1
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
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