Comparables

[vsalvitti]

I have a property in a neighborhood belonging to one township and school district and recent comps in the same neighborhood, but are in a diferent school district and township.

In this slower market, when you can not find recent sales, but only older(12-18mos.),though same style and school district, would it be best to use these older sales and adjust for the time difference or use a property that has same style, more recent sale (under six months) and proximity, but is in a different school district and township?

 

[Financially Feasible]

I have a property in a neighborhood belonging to one township and school district and recent comps in the same neighborhood, but are in a diferent school district and township.

In this slower market, when you can not find recent sales, but only older(12-18mos.),though same style and school district, would it be best to use these older sales and adjust for the time difference or use a property that has same style, more recent sale (under six months) and proximity, but is in a different school district and township?

Why not use a mix of both? Give them 6 comps and do your best to extract any differences due to the school/township differences. Call the RE agents and see if any of their buyers would have a preference for/again either of those localities. The only way to get the market to talk to you is if you talk to the market. Are there any actives/pendings? Use 'em in an "additional listings" addendum. In this day and age, throw everything that you can into the report and explain, explain, explain!

Where in PA is this property?

 

[vsalvitti]

In the Lehigh Valley.. I understand from one agent that the subject property school district is less desirable because of distances to the schools

 

[Financially Feasible]

In the Lehigh Valley.. I understand from one agent that the subject property school district is less desirable because of distances to the schools

Did the agent give you an idea as to "how much less desirable" this subject's district is? Extracting an adjustment straight from an agent (if you think they are being honest with you) is a good primary source of data for your report. Of course, that's a big IF. :icon_mrgreen:

Do both areas have actives/pendings? I have extracted adjustments from actives/pendings before when I have situations similar to yours. When it's all that you have... it's all that you have! If you can find "paired actives"... that might scream the adjustment at you!

 

[vsalvitti]

I'm actually reviewing ERC forms. Two agents stuck with the same school district and values came in at 220000 & 230000
The third agent used a different school district for comps and came in at $260000
The explanation from the one of the first two agents was that subject was in Catasaqua school district, but so far south in the district(bordering the next SD) that kids had to be bused and travel very far and because of this the pocket of homes was less desirable than the bordering SD.

 

[Financially Feasible]

I'm actually reviewing ERC forms. Two agents stuck with the same school district and values came in at 220000 & 230000
The third agent used a different school district for comps and came in at $260000
The explanation from the one of the first two agents was that subject was in Catasaqua school district, but so far south in the district(bordering the next SD) that kids had to be bused and travel very far and because of this the pocket of homes was less desirable than the bordering SD.

Well, I don't do ERC appraisals so I won't give you any further advice since, technically, I'm not "qualified". :icon_mrgreen: Does your mentor have any input on the subject (since I see that you're a trainee)?

 

[vsalvitti]

I'm simply reviewing the ERC forms and tryinmg to do that from an appraisal perspective. Given the info above, I found a comp from 02/07 ( same street 1 block away, same style) which was also used in th ERC that came in at $230K. I'm figuring that even though the comp is from 02/07.. an appraiser can adjust for the time difference. I'm thinking its a better comp than the more recent ones in a totally different township and different school district

 

[vsalvitti]

Does my reasoning make sense... I thought it would be more difficult for an appraiser to come up with a dollar figure for adjustment for different municipality and schools rather than time difference(16months)