Delicate problem

[Gobears81]

They are a huge segment of the population in certain areas, get elected to town positions, change zoning, and vote in a block. Transforms entire sections of a huge county from open farmland, small towns to overbuilt, under taxed areas. Shameful, but you cant call them out on it or you are a bigot or worse. Towns that try to stop them get sued by our attorney general for discrimination.

Other than them buying for higher prices than adjoining neighborhoods, what exactly is making these prices not market value? Were they not openly marketed and/ or each of the properties purchased by the exact same entity? Why didn't they want to buy the subject property - or was it marketed in a manner that gave them the opportunity to find out about it?

 

[Dublin ohio]

Other than them buying for higher prices than adjoining neighborhoods, what exactly is making these prices not market value?

Seems the sect members could be trying to keep non-members out by inflating prices until they dominate the neighborhood. At that point, why would a non-member want to buy in a high price neighborhood where you have little to nothing in common with your neighbors

 

[George Hatch]

Supply/demand. Nothin nefarious about it. There is a limited supply of properties with the desirable-to-them location so the competition is higher. DOMs will be shorter, sale/list ratios will be higher, prices will be stronger, etc.

Let the data speak and keep your own subjective opinionating out of it.

 

[TerryRohrer]

Other than them buying for higher prices than adjoining neighborhoods, what exactly is making these prices not market value? Were they not openly marketed and/ or each of the properties purchased by the exact same entity? Why didn't they want to buy the subject property - or was it marketed in a manner that gave them the opportunity to find out about it?

Somewhere in this consideration has to be volumes (related to your most likely buyer criteria). If every sale that is listed in the area is purchased by a member of this group, the most probable buyer is among this group. But, the real challenge comes when about half the sales involve this group and half don't. It is just a good thing today's $250 appraisal fees allow consideration of these wrinkles!

 

[JTip]

The best thing about Covid is that you can catch it anytime and not be able to work for at least a week.

 

[Sadie]

My problem is explaining why I didnt use the higher sales without stating the obvious truth, which will get my license yanked in a minute. If I do use sales from this area, how can I justify the locational adjustment necessary without stating the obvious. Its a no win situation.

You can do it just remove the thought of them being a religious sect out of the explanation. 'Related people or people known to each other."

Remember they are not the typical market participants; they are just a segment. Most market participants are not willing to pay a premium to live next door to these people. Since your buyer has a contract, for a lower price than the 'sect' area, that tells you its not impacted by this. Don't over think it and go back to basics.

 

[Sadie]

Other than them buying for higher prices than adjoining neighborhoods, what exactly is making these prices not market value? Were they not openly marketed and/ or each of the properties purchased by the exact same entity? Why didn't they want to buy the subject property - or was it marketed in a manner that gave them the opportunity to find out about it?

Probably out bidding other people so they can live in their new colony?

 

[J Grant]

They are a huge segment of the population in certain areas, get elected to town positions, change zoning, and vote in a block. Transforms entire sections of a huge county from open farmland, small towns to overbuilt, under taxed areas. Shameful, but you cant call them out on it or you are a bigot or worse. Towns that try to stop them get sued by our attorney general for discrimination.

Is this really a "sect?" What/who comprises this group that you keep calling it a sect?

The above just indicates people who get elected and might change zoning and vote a certain way. A huge segment of a population is typically not a sect. A sect usually means a limited-to-outsiders group that follows a religion or other codified lifestyle that is not typical of the greater population.

People buying up farmland and making it into towns might be unpopular, but I am still not sure how that qualified them as a "sect". HBU changing from rural to suburban /built up is a housing trend that happens in certain areas.

 

[George Hatch]

If they're competing with other buyers in the open market and are establishing the pricing trend for this particular market segment then who cares what their attributes are? The comparable sales occurred. Those buyers paid those prices. The pricing reflects what the well informed/advised buyers and sellers are thinking. The buyer wants to pay less for this location but apparently can't. The seller wants to sell for more but can't. The meeting of the minds occurred and that price is supported by those sales which are most similar overall.

I don't care if they all have the first name of John and come from the 8th dimension via their oscillation overthruster. Those are the buyers who will pay the most for these properties and there's apparently enough of them to form the probability.

Peter Weller would go

 

[J Grant]

I got an order for a purchase in an area in which a religious sect is expanding into. This sect has its own schools, medical centers, ambulance and fire in the township they are expanding from. They do not use the public school system. This area is predominately huge condo complexes.
My order is a single family home, in a neighboring township and in the past year, the sales of homes and land has exploded, with ever increasing sale prices, as this sect expands its area. These sale prices are far and away higher than sales of similar homes just a mile or so away. My subject property is in this township, but away from the immediate area in which the expansion is happening. If I use sales from the expansion area, my home is selling for well below what the comps show. The buyer and seller of my subject are not affiliated with this sect. Should I ignore the inflated prices and use similar sales from the same school district, but farther away??
I may be overthinking this as I am very aware of potential "bias" issues down the road.

It sounds like you have a bias. You are calling a religion a "sect", and saying they have their own schools, medical centers, etc. Those services are typically public and paid for from tax dollars, though a private school can be anywhere. In another post, you rant about how "they" are taking over farmland in many parts of America and turning it into towns. I personally am sad to see that happen, but it is HBU. Blame the farmers for selling out, and the greedy local government that re-zones rural land for denser development.