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Waterfront

Discussion in 'Urgent - Help Needed' started by 65076507, Oct 2, 2011.

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  1. 65076507

    65076507 Junior Member

    0
    Jan 1, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    I got stipped yesterday because subject has a 60ft pier and 50ft of water frontage. Stips had between 50-70ft pier and 40-60 ft of water frontage. Similar houses, same bodies of water (fresh water, on a small river, and offers similar utility). I saw no evidence to make adjustments for longer piers or wider water frontage. UW says an adjustment is needed becuase some of the comps have more water frontage and longer pier.

    I told UW I see no evidence of this (albeit the data is very limited) and the piers and water frontage all offer similar utility. SHe says common sense prevails. Any thoughts?
     
  2. residentialguy

    residentialguy Elite Member

    181
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    Show her proof. Do a sensitivity analysis on your comps. You adjusted the rest of the comp, the only variance left is the pier or water front. If adjustments to the pier or water front variance would narrow the range of the adjusted price, then maybe she's right. If not and adjusting them makes your comps go farther apart, you're right. Show her some common sense.
     
  3. 65076507

    65076507 Junior Member

    0
    Jan 1, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    ResGuy, Thanks again. WHen she told me common sense prevailed , I almost fell off my chair? Thanks Again. I been getting a lot of tough assignments this week so I appreciate helping out!
     
  4. CGgonnabee

    CGgonnabee Member
    Gold Supporting Member

    7
    Apr 10, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Virginia
    Also remember, deep water docks = more $. Surprised there was no question about that (I got that one).

    I'm impressed that you had comps! Hang in there:)
     
  5. Workshop

    Workshop Sophomore Member

    0
    Nov 19, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New Jersey
    Your work is not on trial.
     
  6. TJSum

    TJSum Elite Member

    16
    Nov 12, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland

    The length of the pier means nothing on its own. As stated above, the important factor is the depth of the water at the end of the pier. The water depth determines what type of boat the owner can use. You could have an area that needs a much longer pier to reach the same water depth as a very short pier somewhere else.

    Also, another important factor is the water view from the home itself, in Maryland I've seen water front with no water views, etc. The water frontage is just one factor of many.

    It sounds like the UW is trying to turn the assignment into a math assignment when there is just too many subjective factors involved to make the kind of comparisons they are trying to boil it down to.
     
  7. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    573
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    When appraising waterfront properties it is best to have land sales on the water. Here a recent study (20+sales over the years) shows a good consistency of $1,700/FF for water front lots on Lake Erie.

    While the utility may be the same (a good argument) it appears that HERE, people pay more for added front footage.
    You also most likely have a depth issue and larger lots will sell for more than smaller lots although not more per unit (acre, SF).

    I would analyze sales based on front footage and overall size. The study I have took a lot of time and effort but it is for litigation purposes which clearly proves the other side to be wrong. Too bad that lenders won't pay for extensive research.
     
  8. TJSum

    TJSum Elite Member

    16
    Nov 12, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    When someone mentions water front in Maryland, I automatically think of the Annapolis area. If this is the case, the actual measurement of water frontage is just one factor of many. Typically in Maryland, water frontage is not on a lake or large body of water where many views are similar. The typical water frontage is small rivers and creeks, with a vast array of water frontages, water views, water depth, gated communities, you name it. You could have 200' of water front being worth less than a 50' water front depending on these other factors.

    The OP posterer needs to give many more details on location, etc. But when offering advice from other regions of the country, keep in mind this is most likely not lake frontage, but rather a creek or small river frontage, where values could vary greatly no matter the amount that fronts the body of water.

    One should not try to tackle water front / view properties in this area, unless they have a lot of experience with them, or know an appraiser that does that can help with the many questions that arise. I have done hundreds of them and still find them very challenging, with a lot of extra research.
     
  9. residentialguy

    residentialguy Elite Member

    181
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    Doc pays C&R fees....he's there to help you.
     
  10. Tony V

    Tony V Elite Member

    67
    Mar 29, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    So according to her, length and width do matter....
     
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