Not confident in view adjustment

[J Grant]

You are not appraising to a single buyer, but the market in general. Someone may love burnt orange shag carpet and be willing to pay a premium, but that is not the typical market participant.

Appraisal 101.

The typical buyer for a house with a deep-water boat dock is ...drumroll... a buyer who wants that amenity. This group of buyers who want a house with a dock is the market segment of typically motivated buyers we are focusing on. The dock and waterfront would typically be a dominant feature and major value driver.

IT might be a niche market in some places. Who cares what a nearby tract house sells for? The dry lot tract house buyer has no interest in the WF dock house and vice versa. Probably very different price points ( but not always). A residential appraiser might be inspecting both of these very different properties on the same day. Switch your mind from one to the other in the appraisals.

 

[glenn walker]

I hope the OP posts the lenders response to the large view adjustment not having a similar sale in 20 years. Did it fly through the QC and UAD with no issues or did it go into a field review or second report by someone else ? Interesting to see how this ended.

 

[Trihard]

I once did a 30% location adjustment on a property that was located on an intersection, and I mean on an intersection. The house was built literally like 6 feet away from the road. There was nothing else in the town like it. Traffic buzzing all day and 6 feet away from your walls. Everything else in that town had a set back like 15-20 feet from the road. I got really lucky with it though because that house sold 3 years prior and I was able to match pair it to some other sales from that time and come up with an adjustment. That was definitely not a house you buy if you have small kids. With these special types of properties, sometimes you get lucky and sometimes you don't have anything. When you don't have anything your last resort is usually interviewing realtors and market participants and trying to range the adjustment out. But I always hated doing that because you have no idea what experience the other person has.

The sad part is once 3.6 gets fully going and the AI AVM's take over. These are the types of properties appraisers will be tasked with doing on a regular basis. I already see that there are no more cookie cutter appraisals being sent to me.

I got sent one today where the house is sandwiched between a large church in the back, a gas station on the side, and a liquor store on the other side. All on a busy road. The AMC offered me $375. No thanks.

 

[Sadie]

Appraisal 101.

The typical buyer for a house with a deep-water boat dock is ...drumroll... a buyer who wants that amenity. This group of buyers who want a house with a dock is the market segment of typically motivated buyers we are focusing on. The dock and waterfront would typically be a dominant feature and major value driver.

IT might be a niche market in some places. Who cares what a nearby tract house sells for? The dry lot tract house buyer has no interest in the WF dock house and vice versa. Probably very different price points ( but not always). A residential appraiser might be inspecting both of these very different properties on the same day. Switch your mind from one to the other in the appraisals.

Right, typical buyer for the property, not a one off buyer. In Terrell's example. the wooded view person would not consider the valley view property, or be willing to pay what a typical buyer of a view property would be willing to pay. Or someone w/no need or desire for a dock or water front property would not be willing to pay what a typical buyer of that property would be willing to pay. The key term typical buyer for the property.

I have never heard the term dry lot before. I think I will put in in my pocket for later use.

 

[Mark K]

I once did a 30% location adjustment on a property that was located on an intersection, and I mean on an intersection. The house was built literally like 6 feet away from the road.

It may have been built that close but more likely is that the road expanded to within 6'. Having appraised a lot of properties affected by "setback" damages, I've calculated and the state has paid some large damage awards for the affected properties, larger than 30% on several occasions, so a 30% adjustment would not be out of line.

If the OP's research shows a 25% adjustment, I'd make the adjustment. Explain thoroughly. I've seen cases where an expansive view overlooking a lake as just as valuable as a waterfront lot. You enjoy the view every time you look out a window or step onto your deck.

 

[glenn walker]

OP Gone ? Was this his last assignment ? Is he still writing rebuttals and trying to prove his view adjustment was supported ?

 

[Surf Cat]

OP Gone ? Was this his last assignment ? Is he still writing rebuttals and trying to prove his view adjustment was supported ?

The lender probably canceled the assignment and paid the appraiser a $50 trip fee..... then subsequently waived the assignment.

 

[Zoe]

You get on pickwick lake or Kentucky lake in TN and you better get ready for how much view is worth. These people are yacht rich. They don't want a boat dock. They park their boat at marina and somebody else cleans it and fills it up with gas.

 

[Zoe]

They like the view sitting high on a cliff with the River view.

 

[juck224]

OP Gone ? Was this his last assignment ? Is he still writing rebuttals and trying to prove his view adjustment was supported ?

Still around, done probably 20 reports since I completed that one I forgot about it. No revisions or anything else from the lender. First assignment for them. I have gotten about 5 assignments since. Not sure if that means anything ? All good points, I did the very best I could with the data I had and typed extremely detailed commentary on all my findings. I am not perfect, I just do my best to write a credible report.