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Appraising House Next To Sex Offender. Adjustment?

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djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
Sometimes i feel you just can't beat them.

But received an order to appraise a property located next to a convicted sex offender?

What kind of an adjustment would be warranted? Do i make an separate line adjustment?

This article says about 12%. I don't think that is right.

"About 12 percent. According to a study released in 2008, houses located next door to a registered sex offender drop by that much in value. For the average American homeowner, that’s a loss of nearly $21,000, enough money to send a child to private school for two years. The family in Pennsylvania claims the home is worth $235,000 without a sex-offender neighbor, so the loss in value has likely surpassed $28,000."
http://www.slate.com/articles/busin...do_they_cost_their_neighbors_in_property.html

Please help
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I honestly don't know but that's a tough one. How did you find out it is next door to a sex offender? Do you search the sex offender database each time you appraise a house ? (I don't)

Is the information on the MLS/did RE agent disclose it? (or is it a refinance)
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
Yeah i look at the county website every once in a while to see who is where. I don't like it maybe just withdraw from the assignment. Are RE agents supposed to disclose this information? I have never seen it.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I honestly don't know the answer to that. Is it up to a buyer to do their own due diligence, especially if they have kids?
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
I interviewed a couple market participants and they said they would never buy that house. So is it a 100% adjustment?
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I don't know, because the question might be, would typical buyer check online for sex offenders before buying?

You alerted these market participants to the problem, so it's kind of not fair. The question would be, do most people research that? Or only those with kids? Ask local RE agents
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Sometimes i feel you just can't beat them.

But received an order to appraise a property located next to a convicted sex offender?

What kind of an adjustment would be warranted? Do i make an separate line adjustment?

This article says about 12%. I don't think that is right.

"About 12 percent. According to a study released in 2008, houses located next door to a registered sex offender drop by that much in value. For the average American homeowner, that’s a loss of nearly $21,000, enough money to send a child to private school for two years. The family in Pennsylvania claims the home is worth $235,000 without a sex-offender neighbor, so the loss in value has likely surpassed $28,000."
http://www.slate.com/articles/busin...do_they_cost_their_neighbors_in_property.html

Please help
Sounds like you have your support. Ask some of the local RE agents to see if they have had experience with this situation, just for further support.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What you are telling me is what they don't know does not impact value?

I did not search for sex offenders when I bought my house ( but I have no kids). For all I know, I could have bought next door or across the street from one.

Value is about perception, re would the typically motivated buyer for subject search for sex offenders as a way to screen properties ? Ask RE agents the question. As an appraiser, I don't search for it, and value houses that may be next door or down the street from one, but I don't know it.

The problem of course is sex offenders are not a permanent ext obs issue, they can move tomorrow. I bet for some kind of discount,some buyers would compromise on it.
Ask RE agents if they are obligated to tell buyers, if they even look it up , maybe they don't want to know so it is not an issue that they have to disclose. .
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I've known a number of registered sex offenders who are about as dangerous as mustard on a hotdog. One was an elderly man who had accumulated a fortune. After his wife died, a niece tried to blackmail him over her kids that he and his wife occasionally babysit years earlier. He refused but offered her ten acres of land. Her own sister and half-brother called her a liar. So this niece filed a complaint and rather than give in , the old guy plead no contest. Ended up with no time and ankle bracelet and cut the niece out of his will. Another one was a 19 year old who gave a 17 year old weed. She tells a friend she can trade sex for dope, so the friend lies about her age (15) and they get caught by her mother. Statutory rape, hardly a pedophile. He died of cancer a few years later, but showed up on the county website for a couple years after he died. I would only worry about pedophiles and rapists.

I have two for a neighbor, each is a goof alright but domestic abuse after a fight with their wife. I don't think they would be a real threat to children. So I think I would try to locate one then see if prices nearby fell. I suspect you won't find much unless a real serious case with widespread publicity. Secondly, there may be a lot more of them than you think. If your choice is the registry or jail time??? What would you do? None of the 4 above served a day. They have you over a barrel pretty much.Our county has at least 10x the registered offenders that it had in 2000 or so when they set up the map. There are also 3 levels of offense here marked with different colors. The area below is only 16-20 sq. miles or so meaning there is about one per square mile.Due to law many are forced to live out of populated areas within a set distance of playgrounds and schools.
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