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Age Restricted Community

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TJSum

Thread Starter
Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
I have a request to appraise a townhome in an age restricted community 55+. The community is relatively new, the builder is gone and there has been very little resale activity so far. There are several listings, but no settlements within the past six months. Is it acceptable to use sales outside of the subdivision given this community has an age restriction? I would think not, but there are no other age restricted communities closeby. What say you ???
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
You have to use what you have. I would go back to find resales from the development, then run a comparison to the area from where you are having to draw sales from. This will support any adjustments or lack of adjustments for being in an over 55 community.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I have a request to appraise a townhome in an age restricted community 55+. The community is relatively new, the builder is gone and there has been very little resale activity so far. There are several listings, but no settlements within the past six months. Is it acceptable to use sales outside of the subdivision given this community has an age restriction? I would think not, but there are no other age restricted communities closeby. What say you ???
I would go back in time to see if I could use sales older than 6 months in the complex.

You will have to establish a value adjustment for any sale out side the age restricted complex and to show its comparability to the subject and its complex. This is not going to be as good as using a time adjusted sale within the subject complex. If you can show how the values relate over time in both complexes track each other, you can then show what adjustment needs to be made at what time point.

Use as many listing and pendings as needed in both complexes.
 

Pbucc2003

Freshman Member
Joined
Mar 3, 2008
Professional Status
Certified Residential Appraiser
State
New York
What could also help is to find an outside sale in the same time frame as the inside sale and pair them up to figure out the adjustment for the 55+ restriction. You wanna stay in the same time frame if your market is declining.
 

TJSum

Thread Starter
Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
The problem is the community is relatively new, only two years old. The only resales so far are not similar to the subject, twice the subject's size, and were over six months ago. All the sales from the builder were not placed on MLS, only the purchase price is shown on tax records, but who knows what each home got in the way of upgrades. So there really is no historical MLS data to go on. The best indication I see is from the several active listings, they are listed below their original purchase prices averaging two years ago. So that gives me an indication of what the subject is NOT worth at least. If it matters, this is an FHA assignment.
 

Pbucc2003

Freshman Member
Joined
Mar 3, 2008
Professional Status
Certified Residential Appraiser
State
New York
Sounds like a nightmare. Rely on the listings and work from there. If thats all you have, then there is nothing you can do.
 

TJSum

Thread Starter
Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
Yes, I was so happy. I received a phone call from a lender I never heard of before from out of state. All they asked was my fee, turn time and if COD was okay. No value check, nothing of the sort. Then after receiving the order, and saw the lack of available comp data, well I am not as happy now...
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Use the larger models with a downward adjustment on size and/or room count based on the active listings and historical data. You might throw in a sale outside the 55+community of a similar sized townhouse making a + or- location adjustment based on your other comps.

If you can develope a reputation for handling these tougher assignments you will start getting referrals.
 

3 Putt

Member
Joined
Aug 18, 2005
Professional Status
Certified General Appraiser
State
Ohio
I have done a few assignments in a community of 55+ in our area. It is a newer subdivision. Therefore, I have to include sales outside the immediate neighborhood and outside of the builders control. The similar sales within close proximity are selling for a similar price. There seems to be no difference of added value for being in the 55+ community. Bassed upon square footage, room count, view, lot size, garage, basement, other amenites, etc. Same house = Same price.
 

TJSum

Thread Starter
Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
I have done a few assignments in a community of 55+ in our area. It is a newer subdivision. Therefore, I have to include sales outside the immediate neighborhood and outside of the builders control. The similar sales within close proximity are selling for a similar price. There seems to be no difference of added value for being in the 55+ community. Bassed upon square footage, room count, view, lot size, garage, basement, other amenites, etc. Same house = Same price.

My concern is the homes in the age restricted community would hold a lower value due to the limited marketability.
 
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