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  #1  
Old 10-02-2011, 08:59 PM
65076507 65076507 is offline
 
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Default Waterfront

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?
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Old 10-02-2011, 09:08 PM
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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.
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Old 10-02-2011, 09:10 PM
65076507 65076507 is offline
 
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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  
Old 10-02-2011, 09:25 PM
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CGgonnabee CGgonnabee is offline
 
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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
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Old 10-02-2011, 09:40 PM
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Your work is not on trial.
  #6  
Old 10-02-2011, 09:59 PM
TJSum TJSum is offline
 
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Quote:
Originally Posted by CGgonnabee View Post
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

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.
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Old 10-02-2011, 10:04 PM
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Michigan CG Michigan CG is offline
 
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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.
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Old 10-02-2011, 10:14 PM
TJSum TJSum is offline
 
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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.
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  #9  
Old 10-02-2011, 10:17 PM
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Originally Posted by Michigan CG View Post
Too bad that lenders won't pay for extensive research.
Doc pays C&R fees....he's there to help you.
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  #10  
Old 10-02-2011, 10:27 PM
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Quote:
Originally Posted by 65076507 View Post
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?
So according to her, length and width do matter....
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