adverse site condition

[mark hurlock]

I disagree. Otherwise, the word 'external' wouldn't be included on the question.

Paul, I'm assuming you are completing a FNMA form and MCG disagrees with the appropriateness of the formatted question from an academic point of view.

 

[J Grant]

Michigan, I'm willing to change my opinion, but I don't think it has to be specifically part of or within the site (hence the term 'external'). If the site backed a nuclear landfill, I'd check yes. The landfill is not part of the site.

I guess I take the question quite literally. "Are there any adverse site conditions or external factors?"

A busy road creates external obsolescence, adverse noise, and views. Its not quite as appealing as a typical residential site surrounded by other compatible homes with no outside influences.

The question is not external obsolesence, the question is, adverse site condition.

Yes, a busy road can create ext obs, but that is a value issue, not a site physicality issue..

Is there an adverse site condition is a stand alone question (yes/no, then describe). If an adverse site condition also creates external obsolescence, that is addressed in appropriate section or narrative, apart from answering the question a asked

RE, an adverse site issue physically outside the site boundaries...such as site backs up to a polluted waterway or landfill. ( your comparison to road being outside the site)

However, an external environmental,, in addition to adversely affecting value ( ext obsolescence a) also would physically impact the site itself...such as leaching pollution into soil or water supply

That is my opinion...that in the context asked, the UW is right regarding the road (for what report intended use is)

One of the standards is peer standards,...if most of your peers say that no, a busy road is not an adverse site condition, then that is one aspect.

 

[togatour]

Why not word it to clearly state what you are trying to say here?

"There are no known adverse site conditions. In the opinion of the appraiser, the subject's backing to a higher traffic street is, in the subject's market segment, an adverse external factor."

Make sure to account for it in the Cost Approach, if applicable.

 

[J Grant]

Why not word it to clearly state what you are trying to say here?

"There are no known adverse site conditions. In the opinion of the appraiser, the subject's backing to a higher traffic street is, in the subject's market segment, an adverse external factor."

Make sure to account for it in the Cost Approach, if applicable.

That would be an acceptable way to handle it ...imo, box still would be no with the comment about ext road put in, but who knows...one could mark yes if UW will accept it.

Just be aware of intended use.

 

[Mike Kennedy]

I guess I take the question quite literally. "Are there any adverse site conditions or external factors?"

A busy road creates external obsolescence, adverse noise, and views. Its not quite as appealing as a typical residential site surrounded by other compatible homes with no outside influences.

Yup - and the marketability and market value impact, if any is extracted from comparables with similar external obsolescence and comparables without the negative external factors.

 

[J Grant]

Yup - and the marketability and market value impact, if any is extracted from comparables with similar external obsolescence and comparables without the negative external factors.

But that is not the question being asked. Ext obs is a value issue, which can be addressed on grid, in narrative, cost approach, site value etc.

This is a stand alone question about adverse environmental or physical issues pertaining to site....pollution, (environmental) cutting into property boundaries or utility of site (easement or encroachment ).

If noise exceeded a certain DB level, that could be considered a health issue and this env...such as traffic roar or beneath airport take off runway.

But moderate or low traffic noise, though annoying, usually does mot meet that criteria.

 

[mark hurlock]

I have a one-acre site to appraise. It has water, natural gas and an engineered septic system. It backs to a nuclear landfill, as does the sites to the right and the left.

I have a one-acre site to appraise. It has NO water (have to drill a well), natural gas and an engineered septic system. It backs to a nuclear landfill, as does the sites to the right and the left.

My second property has a problem in that it needs a well on the site. In both cases the nuclear land fill is a neighborhood characteristic, outside of the subject site.

FNMA considers it a hazardous condition in the vicinity of the subject and requires it to be reported.

The form accommodates the reporting in the site section, not the neighborhood section.

 

[Michigan CG]

A ten unit strip center backs up to a regional shopping mall.

A ten unit strip center backs up to a nuclear landfill.

Neither condition is on the site but one is clearly positive and one is clearly negative. These conditions are external to the site.

 

[Michigan CG]

.........Make sure to account for it in the Cost Approach, if applicable.

Would not the externality already be accounted for in the site value? If so, then what adjustment is necessary in the cost approach unless you are referring to the externality's affect on the improvements?

 

[J Grant]

A ten unit strip center backs up to a regional shopping mall.

A ten unit strip center backs up to a nuclear landfill.

Neither condition is on the site but one is clearly positive and one is clearly negative. These conditions are external to the site.

The question, as asked, references external factor OR site conditions. So it clearly asks about factors external to site ( external, yet close enough to site to adversely affect)


The positive and negative aspect would be a value issue.

The question asked is apart from value, a stand alone question regarding what exists....yes/no, there is an adverse external factor present, or there is not.

(and the environmental condition is there as an example of what they are looking for, in addition to easement, encroachment, , land use, etc)