Neighborhood Boundries

[tyfsu]

Why were you looking for a 1mill+ sale?

Probably shouldn't have worded it that way. The subject was a gulf front property with a little over 3,000 Sq. Ft.... My highest sale within close proximity adjusted out to 1.5 Mil so I think its safe to say I needed a recent sale high end comp.

 

[SANDY]

Sandy, it is called Scope of Work and client needs/expectations. Competency includes thinking about what your peers would do.

Let me know when you get a $5,000 assignment and think it is ok to turn in a report with a two paragraph neighborhood, two paragraph market analysis, two paragraph neighborhood and two paragraph regional analysis. That will be the last assignment you get from that client.

Um- I thought we were talking about a more typical assignment not the ramped up scenario you just introduced into the mix but that's ok if you think you needed it to make your point.

Would you address this for me--- neighborhood boundaries and market area can be and often are two different physical areas or no?

 

[Mike Garrett RAA]

The day I get a $5,000 residential appraisal assignment I will be sure to do two or three paragraphs on neighborhood bountries...til then...it's two lines most of the time.

 

[Michigan CG]

Um- I thought we were talking about a more typical assignment not the ramped up scenario you just introduced into the mix but that's ok if you think you needed it to make your point.

Would you address this for me--- neighborhood boundaries and market area can be and often are two different physical areas or no?

I was merely addressing what you posted and trying to let you see that your campaign for skinnier, faster, less detailed reports is not what all clients want. You seem to have the opinion that no one wants detailed, well documented reports and that is not always true.

.....their reports with a much more detailed 2-3 page neighborhood description and then sit back and pat themselves on the back for a job well done. Meanwhile, the users of our services scratch their heads ....... and ask why is all this stuff in there when all I want to know is the value of the property.

The day I get a $5,000 residential appraisal assignment I will be sure to do two or three paragraphs on neighborhood bountries...til then...it's two lines most of the time.

As will I do also on a typical assignment, I was just trying to get Sandy to think about what she is advocating for here and on different threads.

 

[Michigan CG]

Would you address this for me--- neighborhood boundaries and market area can be and often are two different physical areas or no?

I think that in most cases market areas are many times larger than neighborhoods.

 

[c w d]

I think that in most cases market areas are many times larger than neighborhoods.

How can that be? I'm not sure I agree with your statement. I could recognize different and similar neighborhoods that would be competitive with one another and could be considered similar and comparable markets. I've always considered the neighborhood to be the market area. If we define 2 areas as different neighborhoods appealing to different buyers within one market area then what about the two neighborhoods makes them appeal to the same segment of buyers. Don't the buyers define the market?

 

[Mike Garrett RAA]

Guess it would depend on your market. IN MY MARKET, a market area could be several neighborhoods. There are probably several hundred neighborhoods in Colorado Springs and a dozen MLS marketing areas. The key is...would a buyer buy in a competing neighborhood? If so, then that is the market area.

Preferably, comps should come from the same neighborhood, if available. Best possible comp? Exact same model, next door, that sold yesterday.

 

[c w d]

Guess it would depend on your market. IN MY MARKET, a market area could be several neighborhoods. There are probably several hundred neighborhoods in Colorado Springs and a dozen MLS marketing areas. The key is...would a buyer buy in a competing neighborhood? If so, then that is the market area.

Preferably, comps should come from the same neighborhood, if available. Best possible comp? Exact same model, next door, that sold yesterday.

Neighborhood or subdivision?

 

[Michigan CG]

How can that be? I'm not sure I agree with your statement. I could recognize different and similar neighborhoods that would be competitive with one another and could be considered similar and comparable markets. I've always considered the neighborhood to be the market area. If we define 2 areas as different neighborhoods appealing to different buyers within one market area then what about the two neighborhoods makes them appeal to the same segment of buyers. Don't the buyers define the market?

I'm not sure I agree with your statement.

That is why we look at the forum to expand our knowledge! I have been wrong and learned it here.

I could recognize different and similar neighborhoods that would be competitive with one another and could be considered similar and comparable markets.

Town of 80,000, with two high end areas on the east and west side of town are two different neighborhoods, but the same market area.

Lake front communities for retirees, with similar amenities, are in the same market for some folks, but in different neighborhoods.

A Walgreen's or shopping mall in Fresno, CA selling for a certain cap rate and a Walgreen's or shopping mall in Monroe, NY selling for the same cap rate are definitely in different neighborhoods, but the same market.

 

[Functional Obs]

http://www.appraisalinstitute.org/store/p-117-appraisal-of-real-estate.aspx

ouch

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