Black couple settle lawsuit as home value at $500k below real price

[John Hassler]

Too many here are focusing on the physical improvements of the property. To be a good residential appraiser in this area one must be a good land appraiser. From what limited documents have been made public,the plaintiff's are arguing that appraisers should consider sales from outside Marin City.
Below is a list of MLS sales for the past 12 months in Marin City and Sausalito of detached homes with between 1,800sf and 2,600sf of living area. These were the only search criteria and the list is inclusive of all sales meeting those parameters (the lot sizes are a combination of feet and acres, blame the listing agent not me). The sales are ordered by Sales Price. The first two sales, both on Buckelew St, are in Marin City while the remaining sales are in Sausalito. The third property down the list, on Lincoln Dr, is probably the closest to Marin City being about two block on the other side of the freeway separating the two communities.

Bases on the information provided, could you draw a conclusion that something other than building area and lot size is impacting sale price. How comfortable would you be using a sale from Sausalito when valuing a home in Marin City? What are the chances an inexperienced or out-of-the-area appraiser could make a catastrophic error? (Hint: Note the jump in sale price and jump in $/sf between MC and Sausalito)

Street Full Address	LP	SP	SD	SF	$/SF	Lot
23-25 Buckelew St	1,200,000​	1,250,000​	7/27/2022​	2272​	550​	0.1889​
81 Buckelew St	1,150,000​	1,300,000​	10/14/2022​	2302​	565​	0.2281​
63 Lincoln Dr	1,899,000​	1,852,000​	2/24/2023​	1867​	992​	0.0666​
86-88 Rodeo Ave	1,898,000​	1,866,500​	6/23/2022​	2220​	841​	7000​
99 Cloud View Rd	1,998,000​	1,950,000​	9/29/2022​	2380​	819​	0.2032​
217 North St	2,250,000​	2,325,000​	6/1/2022​	2052​	1133​	0.0482​
93 Crescent Ave	2,500,000​	2,400,000​	5/12/2022​	2104​	1141​	0.1033​
31 Central Ave	2,450,000​	2,404,000​	11/23/2022​	2446​	983​	0.1515​
105 Santa Rosa Ave	2,598,000​	2,450,000​	1/17/2023​	2195​	1116​	0.1149​
236 Spencer Ave	2,497,000​	2,450,000​	9/28/2022​	2485​	986​	0.1995​
100 Woodward Ave	2,195,000​	2,475,000​	5/16/2022​	2188​	1131​	7875​
164-166 Bulkley Ave	1,995,000​	2,500,000​	9/16/2022​	2139​	1169​	5152​
124 Glen Dr	2,549,000​	2,549,000​	11/1/2022​	2565​	994​	5959​
11 Vista Clara Rd	2,750,000​	2,550,000​	7/22/2022​	2581​	988​	13600​
210 West St	2,399,000​	2,800,000​	3/17/2022​	2159​	1297​	0.0758​
71 Woodward	2,450,000​	2,850,000​	7/8/2022​	2360​	1208​	10800​
200 San Carlos Ave	2,199,000​	2,860,000​	4/11/2022​	1953​	1464​	0.0803​
158 Spencer Ave	2,585,000​	2,950,218​	5/27/2022​	2505​	1178​	0.1415​
199 Bulkley Ave	2,995,000​	3,010,000​	7/19/2022​	2199​	1369​	0.1157​
231 Cazneau Ave	2,000,000​	3,050,000​	6/28/2022​	2380​	1282​	0.1429​
70 San Carlos Ave	2,695,000​	3,245,000​	8/8/2022​	2272​	1428​	7552​
187 Harrison Ave	3,295,000​	3,250,000​	10/31/2022​	2540​	1280​	0.1561​
6 Toyon Ct	2,750,000​	3,330,000​	5/16/2022​	2575​	1293​
519 Bonita St	2,995,000​	3,400,000​	5/2/2022​	2545​	1336​	0.1191​
26 Crecienta Dr	2,695,000​	3,500,000​	4/7/2022​	2453​	1427​	0.2167​

 

[Zoe]

Too many here are focusing on the physical improvements of the property. To be a good residential appraiser in this area one must be a good land appraiser. From what limited documents have been made public,the plaintiff's are arguing that appraisers should consider sales from outside Marin City.
Below is a list of MLS sales for the past 12 months in Marin City and Sausalito of detached homes with between 1,800sf and 2,600sf of living area. These were the only search criteria and the list is inclusive of all sales meeting those parameters (the lot sizes are a combination of feet and acres, blame the listing agent not me). The sales are ordered by Sales Price. The first two sales, both on Buckelew St, are in Marin City while the remaining sales are in Sausalito. The third property down the list, on Lincoln Dr, is probable the closest to Marin City being about two block on the other side of the freeway separating the two communities.

Bases on the information provided, could you draw a conclusion that something other than building area and lot size is impacting sale price. How comfortable would you be using a sale from Sausalito when valuing a home in Marin City? What are the chances an inexperienced or out-of-the-area appraiser could make a catastrophic error? (Hint: Note the jump in sale price and jump in $/sf between MC and Sausalito)

Street Full Address	LP	SP	SD	SF	$/SF	Lot
23-25 Buckelew St	1,200,000​	1,250,000​	7/27/2022​	2272​	550​	0.1889​
81 Buckelew St	1,150,000​	1,300,000​	10/14/2022​	2302​	565​	0.2281​
63 Lincoln Dr	1,899,000​	1,852,000​	2/24/2023​	1867​	992​	0.0666​
86-88 Rodeo Ave	1,898,000​	1,866,500​	6/23/2022​	2220​	841​	7000​
99 Cloud View Rd	1,998,000​	1,950,000​	9/29/2022​	2380​	819​	0.2032​
217 North St	2,250,000​	2,325,000​	6/1/2022​	2052​	1133​	0.0482​
93 Crescent Ave	2,500,000​	2,400,000​	5/12/2022​	2104​	1141​	0.1033​
31 Central Ave	2,450,000​	2,404,000​	11/23/2022​	2446​	983​	0.1515​
105 Santa Rosa Ave	2,598,000​	2,450,000​	1/17/2023​	2195​	1116​	0.1149​
236 Spencer Ave	2,497,000​	2,450,000​	9/28/2022​	2485​	986​	0.1995​
100 Woodward Ave	2,195,000​	2,475,000​	5/16/2022​	2188​	1131​	7875​
164-166 Bulkley Ave	1,995,000​	2,500,000​	9/16/2022​	2139​	1169​	5152​
124 Glen Dr	2,549,000​	2,549,000​	11/1/2022​	2565​	994​	5959​
11 Vista Clara Rd	2,750,000​	2,550,000​	7/22/2022​	2581​	988​	13600​
210 West St	2,399,000​	2,800,000​	3/17/2022​	2159​	1297​	0.0758​
71 Woodward	2,450,000​	2,850,000​	7/8/2022​	2360​	1208​	10800​
200 San Carlos Ave	2,199,000​	2,860,000​	4/11/2022​	1953​	1464​	0.0803​
158 Spencer Ave	2,585,000​	2,950,218​	5/27/2022​	2505​	1178​	0.1415​
199 Bulkley Ave	2,995,000​	3,010,000​	7/19/2022​	2199​	1369​	0.1157​
231 Cazneau Ave	2,000,000​	3,050,000​	6/28/2022​	2380​	1282​	0.1429​
70 San Carlos Ave	2,695,000​	3,245,000​	8/8/2022​	2272​	1428​	7552​
187 Harrison Ave	3,295,000​	3,250,000​	10/31/2022​	2540​	1280​	0.1561​
6 Toyon Ct	2,750,000​	3,330,000​	5/16/2022​	2575​	1293​
519 Bonita St	2,995,000​	3,400,000​	5/2/2022​	2545​	1336​	0.1191​
26 Crecienta Dr	2,695,000​	3,500,000​	4/7/2022​	2453​	1427​	0.2167​

How many sf of GLA are in the subject? But yes you make very good points.

 

[Zoe]

The subject does have a nice view. Idk how much you could put on it. I don't know how many properties have that view in Marin City. There must be some big hills in that area.

 

[Zoe]

If you have ever done waterfront properties or ocean front properties, you can imagine what the view is worth. It's a bunch. That goes with the site. (land)

Mountains are similar sometimes relatively. Views make a difference.

 

[Zoe]

What subdivision am I looking at off the subject deck?

 

[John Hassler]

The subject does have a nice view. Idk how much you could put on it. I don't know how many properties have that view in Marin City. There must be some big hills in that area.

For Marin City, that view is typical. For Sausalito that view is meh, about a 2 on a scale of 10.

If you have ever done waterfront properties or ocean front properties, you can imagine what the view is worth. It's a bunch. That goes with the site. (land)

Mountains are similar sometimes relatively. Views make a difference.

The difference between a non-view and a good might be 10% of overall value. A superb view might command an additional 5% premium.

What subdivision am I looking at off the subject deck?

From memory, Marin City and, in the distance, the shallow end of Richardson Bay (mud during low tide).


On a side note, could put all of your questions in a single post next time?

 

[RCA]

Nobody ever takes an appraiser's advice on anything. If fact, I've had relatives ask me my opinion about something and then just go ahead and do the complete opposite. Like don't order a new "manufactured home" built to your specifications from a dealership just because you can have a "luxury" bath and a kitchen island and you must have a NEW house, but you dont have new house money. Search for an older stick built house and add those things later. Dont add on to your home using unlicensed contractors. Don't buy a house in an open flood plain and be surprised when it floods. Don't buy a house full of mold and mildew to "flip". Don't buy the house in the airport flight path, etc. Don't buy a house you have to take out a second mortgage on to make the down payment (that was before the 2008 crash).

Well, you could say nobody takes anybody's advice on anything unless they are young, inexperienced, and naive. They of course may appear to take advice from someone, but that is likely because they were already convinced through separate means. The Germans have a saying something along the lines of "The leaders at the top never see the people below them." So, if you bump into some famous expert on the street and ask him for advice - you might dare give it some consideration - but will know that said expert is likely not giving your issues that much consideration and is mostly concerned about his how success and problems - and if after giving it some thought you don't agree - most likely you will not take his said advice.

 

[RCA]

Too many here are focusing on the physical improvements of the property. To be a good residential appraiser in this area one must be a good land appraiser. From what limited documents have been made public,the plaintiff's are arguing that appraisers should consider sales from outside Marin City.
Below is a list of MLS sales for the past 12 months in Marin City and Sausalito of detached homes with between 1,800sf and 2,600sf of living area. These were the only search criteria and the list is inclusive of all sales meeting those parameters (the lot sizes are a combination of feet and acres, blame the listing agent not me). The sales are ordered by Sales Price. The first two sales, both on Buckelew St, are in Marin City while the remaining sales are in Sausalito. The third property down the list, on Lincoln Dr, is probably the closest to Marin City being about two block on the other side of the freeway separating the two communities.

Bases on the information provided, could you draw a conclusion that something other than building area and lot size is impacting sale price. How comfortable would you be using a sale from Sausalito when valuing a home in Marin City? What are the chances an inexperienced or out-of-the-area appraiser could make a catastrophic error? (Hint: Note the jump in sale price and jump in $/sf between MC and Sausalito)

Street Full Address	LP	SP	SD	SF	$/SF	Lot
23-25 Buckelew St	1,200,000​	1,250,000​	7/27/2022​	2272​	550​	0.1889​
81 Buckelew St	1,150,000​	1,300,000​	10/14/2022​	2302​	565​	0.2281​
63 Lincoln Dr	1,899,000​	1,852,000​	2/24/2023​	1867​	992​	0.0666​
86-88 Rodeo Ave	1,898,000​	1,866,500​	6/23/2022​	2220​	841​	7000​
99 Cloud View Rd	1,998,000​	1,950,000​	9/29/2022​	2380​	819​	0.2032​
217 North St	2,250,000​	2,325,000​	6/1/2022​	2052​	1133​	0.0482​
93 Crescent Ave	2,500,000​	2,400,000​	5/12/2022​	2104​	1141​	0.1033​
31 Central Ave	2,450,000​	2,404,000​	11/23/2022​	2446​	983​	0.1515​
105 Santa Rosa Ave	2,598,000​	2,450,000​	1/17/2023​	2195​	1116​	0.1149​
236 Spencer Ave	2,497,000​	2,450,000​	9/28/2022​	2485​	986​	0.1995​
100 Woodward Ave	2,195,000​	2,475,000​	5/16/2022​	2188​	1131​	7875​
164-166 Bulkley Ave	1,995,000​	2,500,000​	9/16/2022​	2139​	1169​	5152​
124 Glen Dr	2,549,000​	2,549,000​	11/1/2022​	2565​	994​	5959​
11 Vista Clara Rd	2,750,000​	2,550,000​	7/22/2022​	2581​	988​	13600​
210 West St	2,399,000​	2,800,000​	3/17/2022​	2159​	1297​	0.0758​
71 Woodward	2,450,000​	2,850,000​	7/8/2022​	2360​	1208​	10800​
200 San Carlos Ave	2,199,000​	2,860,000​	4/11/2022​	1953​	1464​	0.0803​
158 Spencer Ave	2,585,000​	2,950,218​	5/27/2022​	2505​	1178​	0.1415​
199 Bulkley Ave	2,995,000​	3,010,000​	7/19/2022​	2199​	1369​	0.1157​
231 Cazneau Ave	2,000,000​	3,050,000​	6/28/2022​	2380​	1282​	0.1429​
70 San Carlos Ave	2,695,000​	3,245,000​	8/8/2022​	2272​	1428​	7552​
187 Harrison Ave	3,295,000​	3,250,000​	10/31/2022​	2540​	1280​	0.1561​
6 Toyon Ct	2,750,000​	3,330,000​	5/16/2022​	2575​	1293​
519 Bonita St	2,995,000​	3,400,000​	5/2/2022​	2545​	1336​	0.1191​
26 Crecienta Dr	2,695,000​	3,500,000​	4/7/2022​	2453​	1427​	0.2167​

If you want to know why, you need to look at the demographics:

"After the war, the area became predominantly African-American, as white residents were able to move freely to private housing elsewhere in Marin County. Since the 1980s, additional development has changed the makeup of the population while providing more local jobs. In 2018, Marin City's socioeconomic and racial makeup (median household income of $40,000, and almost 40 percent Black) contrasts with the mostly wealthy and White population in Marin County overall (greater than $80,000 median income, less than four percent Black).[7][8]" [Wikipedia - Marin City]

Low Income and Black. But which is it? It is not because it is Black. It is the low income, which means less expensive houses, less money for upgrades and so on. That is one factor. The other is that, unlike Sausalito proper, it is unincorporated - it doesn't have the same services. Another factor, compared to Sausalito proper, is a far inferior view, another lack of a vibrant local community and so on.

 

[RCA]

Also, not to forget. Marin City is where you find the housing projects:

Marin City 507 units of extremely low income to very low income apartments.

Sausalito has only about 23 low and moderate income boat berths.

From the attached map, the subject is only a block or two away from most of these units. You cannot say this will not have an impact on the subject house price.

Source: Marin County GIS Database Download. You can download the shapefiles and bring them in QGIS to get all kinds of information and maps. ....

 

[Elliott]

Those 'racist' profile from the internet:

"Marin City was developed for housing starting in 1942, to accommodate wartime shipyard workers and other migrants to California. Among those were African Americans from the South in the Great Migration, which continued until 1970. After the war, the area became predominantly African-American, as white residents were able to move freely to private housing elsewhere in Marin County. Since the 1980s, additional development has changed the makeup of the population while providing more local jobs.Wikipedia"

Sausalito: "The community is situated near the northern end of the Golden Gate Bridge, and prior to the building of that bridge served as a terminus for rail, car, and ferry traffic. Sausalito developed rapidly as a shipbuilding center in World War II, with its industrial character giving way in postwar years to a reputation as a wealthy and artistic enclave, a picturesque residential community, and a tourist destination. The city is adjacent to, and largely bounded by, the protected spaces of the Golden Gate National Recreation Area as well as the San Francisco Bay.Wikipedia"

Fannie wants appraisers to mention if the neighborhood has a new community swimming pool. What a difference a freeway and a mile make.