adverse site condition

[Terrel L. Shields]

If so, then what adjustment is necessary in the cost approach unless you are referring to the externality's affect on the improvements?

Hopefully, the market will tell you if it is impacting the improvements. But without sales, then your land values become suspect and if you cannot rely upon them, then your property value becomes suspect and you have no basis to adjust for either the land value or the external obsolescence of the dwelling.

 

[mark hurlock]

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.

I thought we were talking about a residential property and FNMA reporting guidelines.

First you describe a hazardous external site condition as a neighborhood characteristic now you argue an academic point with commercial property without establishing your scope of work or the needs of the client.

FNMA requires the appraiser to follow the reporting requirements of the form and you certify that when signing it.

 

[Michigan CG]

I thought we we talking about a residential property and FNMA reporting guidelines.

First you describe a hazardous external site condition as a neighborhood characteristic now you argue an academic point with commercial property without establishing your scope of work or the needs of the client.

FNMA requires the appraiser to follow the reporting requirements of the form and you certify that when signing it.

Mark, a site is a site; Commercial, residential, industrial or agricultural. For all examples posted I described sites. I am simply giving another example of externalities to a site and if they should be reported as site characteristics.

Is a nuclear dump behind a residential site a site characteristic while a nuclear dump behind a strip center not a site characteristic?

=====================

If you want to limit it to FNMA then again look at the line in question. Easements, encroachments and environmental conditions are site specific. The only question is the "land uses".

 

[J Grant]

jmo, people are confusing,, or combining, a value issue with the question, as the question is asked.

The first page asks a question: Are there any site conditions or external factors present? , ( yes or no, and they give a few examples)

Value and marketability impact can be addressed in report at length, AFTER the question is answered.

For example: Question: Does the subject house have an old roof, or a new roof?

That is a yes or no question, and asks about condition /age of roof. It does not ask how an old roof or new roof affects value.

In most cases, a new roof or old roof would impact value, but that is not the question being asked.

 

[mark hurlock]

Mark, a site is a site; Commercial, residential, industrial or agricultural. For all examples posted I described sites. I am simply giving another example of externalities to a site and if they should be reported as site characteristics.

Is a nuclear dump behind a residential site a site characteristic while a nuclear dump behind a strip center not a site characteristic?

=====================

If you want to limit it to FNMA then again look at the line in question. Easements, encroachments and environmental conditions are site specific. The only question is the "land uses".

You are applying an academic argument to a specific assignment condition.

FNMA requires the reporting of an external HAZARDOUS influence within VICINITY of the subject.

In your example it would NOT be a neighborhood characteristic by any stretch of the imagination.

In fact I can't imagine any assignment condition where any client would agree with you. Unless I was planning on expanding the nuclear waste dump and didn't care about the influence of the existing dump.

 

[mark hurlock]

If you want to limit it to FNMA then again look at the line in question. Easements, encroachments and environmental conditions are site specific. The only question is the "land uses".

If this thread is not for a FNMA assignment, someone please stop me.

When the appraiser has knowledge of any hazardous condition
(whether it exists in or on the subject property or on any site within
the vicinity of the property)--such as the presence of hazardous
wastes, toxic substances, asbestos-containing materials,
ureaformaldehyde insulation, radon gas, etc.--he or she must note
the hazardous condition on the appraisal report and comment on any
influence that the hazard has on the property's value and
marketability (if it is measurable through an analysis of comparable
market data as of the effective date of the appraisal) and make
appropriate adjustments in the overall analysis of the property's
value.

 

[Michigan CG]

You are applying an academic argument to a specific assignment condition.

FNMA requires the reporting of an external HAZARDOUS influence within VICINITY of the subject.

In your example it would NOT be a neighborhood characteristic by any stretch of the imagination.

In fact I can't imagine any assignment condition where any client would agree with you. Unless I was planning on expanding the nuclear waste dump and didn't care about the influence of the existing dump.

I just looked at the form again and it asks "Are there any site conditions or EXTERNAL FACTORS". I did not read that at first so the OP would be correct as would Mark for the specific form. However, this is FALSE:

In your example it would NOT be a neighborhood characteristic by any stretch of the imagination.

Nuclear dumps and busy highways are neighborhood characteristics in the basic definition of a neighborhood.

Paul, I stand corrected in terms of the 1004 Form.

 

[mark hurlock]

Nuclear dumps and busy highways are neighborhood characteristics in the basic definition of a neighborhood.

.

I will let FNMA know that MGC from the appraiser forum disagrees with them.

 

[Michigan CG]

I will let FNMA know that MGC from the appraiser forum disagrees with them.

Sometimes you come across as a total jerk.

Pull out a basic Appraisal 101 textbook or reference material and look at what a neighborhood description would entail.

I am sure a smart guy like you has the Appraisal of Real Estate, any edition, in mine the definition is on page 164.

 

[mark hurlock]

Sometimes you come across as a total jerk.

Pull out a basic Appraisal 101 textbook or reference material and look at what a neighborhood description would entail.

I am sure a smart guy like you has the Appraisal of Real Estate, any edition, in mine the definition is on page 164.

Proximity to schools, shopping, medical facilities, employment, linkage to metropolitan areas, and influences such as resort amenities, etc are all neighborhood characteristics. Hazardous toxic waste dumps are NOT.

They are hazardous toxic waste dumps. The only way it would be a neighborhood characteristic is if you had a neighborhood full of toxic waste dumps and were comparing one toxic dump to another. Your academic argument is nonsense.

Furthermore, it is not me you are disagreeing with, it is FNMA.

You just have a personal problem that clouds your judgment.