Comparables In A Different State

[Carnivore]

I live five miles north of the NC/SC line, This line runs straight across the bottom of our county. South of me and further west in the county it is rural. Not unusual to have comparable with in a 1/4 to 1/2 mile from your subject in SC. Frankly you can enter SC without even realizing it. Signs get tore down or covered with vegetation.

But having said that there are differences in county taxes NC/SC, Also schools are a factor. Interesting part about schools, is the bus ride in SC for those kids is quite a ways. They can go to the NC School for $500 bucks a year if they live close to border. Many families opt for that option.

So it depends on the subject actually. Data I ran over that way showed little difference in site value.

With proper and good explanation it doesn't raise eyebrows to much.

 

[Carnivore]

I live five miles north of the NC/SC line, This line runs straight across the bottom of our county. On the west side of the county it is rural. Not unusual to have comparable with in a 1/4 to 1/2 mile from your subject in SC. Frankly you can enter SC without even realizing it. Signs get tore down or covered with vegetation.

But having said that there are differences in county taxes NC/SC, Also schools are a factor. Interesting part about schools, is the bus ride in SC for those kids is quite a ways. They can go to the NC School for $500 bucks a year if they live close to border. Many families opt for that option.

So it depends on the subject actually. Data I ran over that way showed little difference in site value.

With proper and good explanation it doesn't raise eyebrows to much.

 

[residentialguy]

Do buyers for this type of house and location look in both states?

They don't have to. It means much more work for the appraiser to adjust all the variances of another market to reflect the subject's market, however.

 

[Meandering]

I recently saw an appraisal report for a property located on a lake that is on a state border and two of four comps were from the other state....the appraisal report included a very detailed narrative explanation and appeared to be a credible report.

Greenwood Lake NY and NJ???

.

 

[Meandering]

Sometimes when you're dealing with special waterfront properties, you need to include data from both sides of the water, when data is very scarce, and the big benefit is the waterfront with only minor considerations for taxes, and/or schools. Not everyone who buys a house is going to buy a full time residence, or even has kids in school.

.Just depends who the "typical buyer" is,

oh but USPAP did away with appraisers stating their projected "typical buyer" several changes ago. Real shame.

.

 

[Lee Lansford]

Do buyers for this type of house and location look in both states?

Bingo!

It is the market that tells us what are appropriate market substitutes and what are not.

 

[residentialguy]

Do buyers for this type of house and location look in both states?

They don't have to. It means much more work for the appraiser to adjust all the variances of another market to reflect the subject's market, however.

Bingo!

It is the market that tells us what are appropriate market substitutes and what are not.

I disagree. While it's nice to have cookie cutter comps in the subject's market, often an appraiser needs to go to other markets due to lack of similar sales in the subject's market. This makes it complex, not impossible. If there are market variances, then they need to be adjusted so that it reflects the market of the subject.

 

[Meandering]

Bingo!

It is the market that tells us what are appropriate market substitutes and what are not.

The problem is that too many appraisers misidentify "the market". At least what I have seen.

Do "typical buyers" of one bedroom lakeside cottages really care about school districts????

Do "typical buyers:" of multi-million dollar lakeside homes really quibble over one state versus another tax differences, if the differences are not too far different?

I saw one on a 110 year old 3/2 house, that used 55 year old homes as comps, yet "the neighborhood" was identified as being 20 miles across, and there were many 80+ year old 3/2 homes in the appraiser's identified neighborhood, yet they weren't used, because they were 2 miles farther from the subject than the 55 year old homes used as comps.

.

 

[Peter LeQuire]

Appraising very high dollar houses in this region may very well require crossing state lines to find sales of reasonably competitive properties.

Competitive properties may well be thousands of miles away, perhaps on different continents. My experience argues that someone paying multiple millions of dollars for a "premier" estate probably doesn't care about school district or proximity to Costco. An appraiser appraising such is probably immune from UAD scrutiny and AMC checklisting.

 

[Sid Holderly]

It relates to the question of when do you stop expanding the search radius or other definable boundaries to find adequate comps. Searches of neighboring MLS systems results in some duplication and poor correlation when the search parameters are not consistent. A 100-year-old house may have been totally gutted and rebuilt making it more comparable to an updated 50-year-old house. In the rural/small town market, knowledge of the market, deciphering property card data, knowing the possible search parameters of the MLS, a keen eye on drive-by inspection, a good RE agent (if they reply) and interpretation of exterior & interior MLS pictures may weight a lot more than actual age.

In this area neighboring school districts have similar scores and paired analysis finds no value difference. Locals may say they prefer this over that but the MLS data cannot find any difference.
The donut rule - similar properties say 15 to 25 mile from the center of employment (large city) have a similar value range. This works when there is only one large employment center within a 50 mile radius. Proving this to an AMC takes pages of data, of course, this is oversimplified.