Contributory Value

[Matt Parry]

I am a newbie appraiser trainee. Generally speaking, at what point can the construction of a new high school - that will not be fully operational for 3-4 years - be considered as a contributing factor in residential property values? All responses are appreciated.

 

[Dublin ohio]

Replacement high school, additional high school, will it result in redistricting

 

[TerryRohrer]

Generally, for such public projects, by the time the decision is made to proceed, the impact is baked into current sales. The current impact is best reflected in the most recent sales. There is no need to quantify it or worry about timing.

The above is why eminent domain appraisals are usually required to be as of a date before the project was publicly announced. Then, the state does not end up paying for project benefits they are paying to create.

 

[Matt Parry]

Replacement high school, additional high school, will it result in redistricting

View attachment 110053

Sorry I was not clear on that. It is a replacement high school so it will probably not result in redistricting. Good question, thanks.

 

[Matt Parry]

Generally, for such public projects, by the time the decision is made to proceed, the impact is baked into current sales. The current impact is best reflected in the most recent sales. There is no need to quantify it or worry about timing.

The above is why eminent domain appraisals are usually required to be as of a date before the project was publicly announced. Then, the state does not end up paying for project benefits they are paying to create.

Thanks for your response and the additional comment about eminent domain.

 

[Terrel L. Shields]

As the birthrate falls and the first buyer's age is creeping into the 40s I would say it is not a big deal valuewise.

 

[Matt Parry]

Ok, thanks for your reply. Definitely food for thought.

 

[Joe Flacco]

The school being new or renovated is a plus, but for the most part, what people care about are things like class room sizes, test scores and proficiency rates.

MCPS has two new high schools opening in 2027 and it has been very controvertial due to redrawing of boundaries. School boundary changes brings out the unpleasant side of people.

 

[shrubberyvaluation]

I am a newbie appraiser trainee. Generally speaking, at what point can the construction of a new high school - that will not be fully operational for 3-4 years - be considered as a contributing factor in residential property values? All responses are appreciated.

When the typical buyer has that information.

 

[J Grant]

Schools are an expected part of communities. So a new school or replacement school would usually not impact values in any meaningful way - the exception being the properties that are on the same street as the school or back up to it. But the general community - if a school now or in the future impacts values, the sales would reflect it.

A comment, if you choose to make one: " A replacement school is being planned. Any impact on values is reflected in area sale prices." Neutral, yet true.
As an experienced appraiser, one learns that "anything you say can and will be used against you"... borrowing from the Miranda warning. If an appraiser makes a statement that the school will either positively or negatively affect value, then someone can challenge it - what facts support it? How did you arrive at that conclusion, etc. This can open the door to board complaints or a lawsuit. So unless the appraisal assignment is to specifically analyze the impact of the new school opening, keep comments about the school within the SOW of the appraisal.

If it were a prison being planned, or a big employer moving to an area, or a data center opening, etc., anything unusual might need a comment -but even there, it holds true that any effect on value is r will be reflected in sale prices and marketing times.