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 11-09-2009, 05:18 PM
Eli Weiss's Avatar
Eli Weiss Eli Weiss is offline
 
Join Date: Nov 2005
Location: Brooklyn
State: New York
Professional Status: Certified Residential Appraiser
Posts: 1,528
Default Deed Restrictions: Evaluating the market effect and discount thereof

I am doing an appraisal on a purchase that was heavily discounted due to the following deed restrictions, how would you proceed in evaluating an adjustment or discount?





__________________
"Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world."
Sponsored Links

  #2  
Old 11-09-2009, 07:02 PM
Lee in L.A.'s Avatar
Lee in L.A. Lee in L.A. is offline
 
Join Date: Jan 2002
Location: Los Angeles / Reseda, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 7,948
Default

Hmm. Lotta words there. Based on the last paragraph it sounds like you have not so much an SFR, as a museum building for an entity to be created.
  #3  
Old 11-09-2009, 07:05 PM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is online now
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 39,098
Default

The "heavily discounted" aspect is probably your only source of info. use it. Figure what it is worth without the restrictions, then estimate the impact. I would try to find similar restrictions in the market place, regardless how old the sale (even 10 years old) but you may find you cannot find such.
__________________
"I've seen a great many troubles, most of which never happened.-Twain"
  #4  
Old 11-09-2009, 07:05 PM
George Hatch's Avatar
George Hatch George Hatch is offline
 
Join Date: Jan 2002
Location: Carlsbad, California
State: California
Professional Status: Certified General Appraiser
Posts: 15,950
Default

Forever is a long time. I doubt the Jetsons will be enamored with a 1923 bungalow when everything around it is redeveloped with a 10,000 sf McMansion.
  #5  
Old 11-09-2009, 07:27 PM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is online now
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 39,098
Default

I wonder how the courts would view this? I bet they would find it an illegal contract. If it had a time limit, say 100 years...then I could see it being court proof.
__________________
"I've seen a great many troubles, most of which never happened.-Twain"
  #6  
Old 11-09-2009, 08:41 PM
David Wimpelberg's Avatar
David Wimpelberg David Wimpelberg is offline
 
Join Date: Mar 2005
Location: Hamptons, NY
State: New York
Professional Status: Certified General Appraiser
Posts: 15,303
Default

At a glance, it appears the restrictions are due to some historic features of the property. Measuring the effect on value has to be done in the context of the competing market area. If there are other similar properties in the area, it's possible that the restrictions have no effect on value. If, on the other hand, they cause the property to be different, or not allow the property to be used at its highest and best use relative to other properties in the area, then the value impact may be severe.

Naturally, the best sales for such a property are other properties with such restrictions. Various entities, such as historic societies, preservation societies, and municipalities, hold such easements, so they might be able to help you with identifying particular sales.

On some properties, income methodologies can be used to determine the impact on value. They are typically used on commercial properties, but can be used on residential properties if they are income producing.
  #7  
Old 11-09-2009, 08:59 PM
moh malekpour moh malekpour is offline
 
Join Date: May 2002
Location: Southern California
State: California
Professional Status: Certified Residential Appraiser
Posts: 5,527
Default

Was this property ever sold in the past? If it was, find out what was its market value in relation to similar properties with no deed restriction that were sold at taht time. Apply that ratio to similar current sold properties with no deed restrictions to adjust them for the restriction and explain why and what you did.
  #8  
Old 11-09-2009, 09:31 PM
jay trotta's Avatar
jay trotta jay trotta is offline
 
Join Date: Feb 2004
Location: Snowglobe
State: Connecticut
Professional Status: Certified Residential Appraiser
Posts: 6,387
Cool

Because the "Third Party Holder of the Deed" is a named Historical (Doglaston-Little Neck Historical Society) Piece it would appear to set this parcel apart. Although it carries certain Restrictions, does not just Limit Value - It could create a greater Value because of the restrictions.

There are several area's in our State that draw "Historical" Buyers, they are in search of the "Limited Historical" properties and therefore pay a "premium" for that option. It sounds as tho the original Owner had some interest in the Historical Society named and therefore, was in agreement at that time for the preservation of the "Land". Truly an original player, if he/she were around today they would have been part of the Green process currently taking root.
What is typical is that, although they had a vision for preservation, the property would always acquire greater Value than what they paid for it in the 1930' (after the depression) - (funny you are doing this Appraisal in the Midst of the Depression).......twightlight Zone stuff
......I have run across somewhat similar restrictions over my time in the business and all are quirky. The ones that will make your hair stand stright up, are those that have been involved, where a railroad had existed, make sure you find an old grey haired Surveyor, they are the only ones with the knowledge of what that was all about.

Good Luck and have fun.......it's only a game, according to Wall Street & The Fed
  #9  
Old 11-09-2009, 09:38 PM
Summer Summer is offline
 
Join Date: Jan 2008
State: Connecticut
Professional Status: Certified Residential Appraiser
Posts: 842
Default

Those restrictions will stand up in court. You have to discount it. You should find another deed restricted property. Start calling realtors and builders, they always pop up.
  #10  
Old 11-09-2009, 10:00 PM
jay trotta's Avatar
jay trotta jay trotta is offline
 
Join Date: Feb 2004
Location: Snowglobe
State: Connecticut
Professional Status: Certified Residential Appraiser
Posts: 6,387
Cool

Most properties Today are Restricted by Zoning Law and that will also stand up in Court.
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 08:58 PM.

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