Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > General Appraisal Discussion
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 06-23-2008, 03:38 PM
DeKay Bayliffe DeKay Bayliffe is offline
 
Join Date: Oct 2006
Location: Wasilla, Alaska
State: Alaska
Professional Status: Certified Residential Appraiser
Posts: 67
Default Location adjustment

I'm appraising a home in a neighborhood that is known for it's drug trafficking and run down properties. The sujbect is on the outside of the subdivision, but still will not bring in as much as if it were elsewhere. Does anyone have any good advice on how to explain...without violating USPAP? Thanks
Sponsored Links

  #2  
Old 06-23-2008, 03:40 PM
CANative's Avatar
CANative CANative is offline
 
Join Date: Jun 2003
Location: Hopland, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 46,507
Default

How do you know it will not bring in as much as if it was elsewhere?
__________________
“The peasants are revolting? Why yes, they are quite revolting.” ~ Oscar Wilde
  #3  
Old 06-23-2008, 03:41 PM
Michigan CG's Avatar
Michigan CG Michigan CG is offline
 
Join Date: Nov 2006
State: Michigan
Professional Status: Certified General Appraiser
Posts: 17,423
Default

Cite police statistics. As for the run down properties, put 6-10 pictures in a photograph addendum and include it as part of your neighborhood analysis.
__________________
You do not know what you do not know.
  #4  
Old 06-23-2008, 03:42 PM
Michigan CG's Avatar
Michigan CG Michigan CG is offline
 
Join Date: Nov 2006
State: Michigan
Professional Status: Certified General Appraiser
Posts: 17,423
Default

Quote:
Originally Posted by Greg Boyd View Post
How do you know it will not bring in as much as if it was elsewhere?
Maybe he is geocompetent and knows the area well?
__________________
You do not know what you do not know.
  #5  
Old 06-23-2008, 03:43 PM
Smokey Bear's Avatar
Smokey Bear Smokey Bear is offline
 
Join Date: Dec 2004
Location: The "OC" in Republican Land (Oh no!)
State: California
Professional Status: Certified Residential Appraiser
Posts: 12,470
Default

Just demonstrate the value differences from your market analysis.
__________________
For God's sake, if you need to take legal action, GET A LAWYER. I'm not giving legal advice.
  #6  
Old 06-23-2008, 03:46 PM
DeKay Bayliffe DeKay Bayliffe is offline
 
Join Date: Oct 2006
Location: Wasilla, Alaska
State: Alaska
Professional Status: Certified Residential Appraiser
Posts: 67
Default

Thank you all!
  #7  
Old 06-23-2008, 03:47 PM
Hamlet's Avatar
Hamlet Hamlet is offline
 
Join Date: Aug 2006
Location: Where the corn grows
State: Ohio
Professional Status: Certified Residential Appraiser
Posts: 5,099
Default

I would also use the market adjust you were able to derive for the locational adjustment on your grid as part of your explanation. That is evidence also that there is a negative influence without violating the PC police.
__________________
Foxtrot, Uniform, Charlie, Kilo Cancer.... Remembering Mr. Bill Waite
  #8  
Old 06-23-2008, 03:50 PM
timd354's Avatar
timd354 timd354 is offline
 
Join Date: Jan 2008
Location: Baltimore-Washington Metro Area
State: Maryland
Professional Status: Certified Residential Appraiser
Posts: 4,797
Default

if you use comparable properties which are located within the same or neighborhoods with similar appeal as the subject property, then would be no need for any adjustment. Tread very carefully here, lest you be accused of redlining or worse. As far as citing police crime statistics, what good does that do? If you are making a location based adjustment for a comparable property from a different neighborhood, you extract the amount of the adjustment from difference in sales prices between that neighborhood and the subject's neighborhood, not from the differences (if any) in real or perceived crime rates. Remember, you are an appraiser, not a sociologist. Just report the facts as far as market values are concerned. If similar properties in comparable neighborhood 1 have a median sales price which is 10% more than similar properties in the subject neighborhood, just make a 10% adjustment and explain that property values are 10% higher in the competing neighborhood and how you made this determination. There is absolutely no need to get into differing crime rates, etc.
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 08:25 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93