Delicate problem

[Shawangunk RE]

So, who pays for all of these private services. Are they also paying for the public services? If they pay for both, the higher prices really seem to defy logic

The taxpayers subsidize all of it.

 

[Surf Cat]

My subject property is in this township, but away from the immediate area in which the expansion is happening.

Perfect....no need to worry about the cult influence....

Should I ignore the inflated prices and use similar sales from the same school district, but farther away??

Yes. Find properties that compete with the same buyers. Then of course explain your choices and the price gap between the expansion area.

 

[Shawangunk RE]

Perfect....no need to worry about the cult influence....

Yes. Find properties that compete with the same buyers. Then of course explain your choices and the price gap between the expansion area.

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.

 

[Joe Flacco]

It is not important why the prices are being driven up there. All you have to explain is that there is shortage there and the subject property location, as of today, is outside of there.

 

[Joe Flacco]

I have neighborhoods divided by a street and the market is strong on one side and soft on the other side. It doesn't matter why, what matters is that one side is strong and one side is soft, and you can show it with data.

 

[Surf Cat]

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.

Use AI.....everyone else is...just clean below up to fit it to your writing style.


Neighborhood Market Analysis

The subject property is located within a transitioning residential township characterized by a distinct dual-market dynamic. Over the past 12 months, the wider township has experienced a significant increase in real estate activity, marked by rapid land and residential sales accompanied by escalating purchase premiums.

However, data analysis reveals that this market appreciation is heavily concentrated within a specific sub-market geographic pocket. This high-demand zone is driven by specific community-centric infrastructure and localized demand pressures, creating an isolated pricing structure that is substantially higher than the surrounding area.

Outside of this specific high-density expansion zone, the market remains stable with pricing consistent with traditional detached, single-family residential trends. Because the subject property is located away from the immediate locus of this localized high-demand pocket, it does not share the same buyer pool or price premiums.

Therefore, to reflect accurate market value, comparable selection has been drawn from competing, non-premium segments within the broader market area that exhibit similar economic traits and true property substitution.

 

[Gobears81]

the recent sales in the area that are being purchased by members of this sect are selling for tens if not hundreds of thousands of dollars more than similar sales less than a mile away.

Most of my work is in thin/ inefficient markets. Not a residential appraiser, but located near Amish country that can be quite frustrating to do appraisals in for essentially all property types. Market value is about identifying the most likely selling price, not necessarily an intrinsic value or a relative value in comparison to markets that are nearby and share similarities. There are some kickers that might (but might not) push these sales out of market value territory - undue stimulus, typical motivations of buyers and sellers, and well-informed parties. Religious affiliation is not, in itself a violation of market value.

Some say to disregard the sales, but if this property was openly marketed, would the members of this religious sect be the most likely purchaser? Is there anything that could cause this to change between the dates of the (high) sales and the effective date?

 

[Tom4value]

1st, how big is this sect that it can not only affect the market but the entire infastructure?

I will assume you are right in that the sect is indeed affecting the market. Now, substitute the sect with ABC Corporation that is hiring 1,000 employees. You would have no problem talking about how the corporation is having a positive affect on the market, right? "Ah, but it is only members of the sect that are paying the higher prices." That would be the same thing with employees of the new corporation, right?

The bias scare (my opinion) has appraisers paranoid about mentioning anything that has to do with "special groups". The truth is, the "bias police" (again, my words) is focused on appraisers providing their opinions that are not supported by hard data; that is their definition of bias.

You can't just not mention what is happening. Not only is it poor appraising but it is in fact a form of bias. My take would be to first, not say, "sect". Instead, say something like "private group". Then provide as much hard data that you can, i.e., number of sales, specific price trends, days on market, etc.; everything that you can so that your conclusions are an undeniable statement of fact and not an unsupported opinion.

 

[Shawangunk RE]

1st, how big is this sect that it can not only affect the market but the entire infastructure?

I will assume you are right in that the sect is indeed affecting the market. Now, substitute the sect with ABC Corporation that is hiring 1,000 employees. You would have no problem talking about how the corporation is having a positive affect on the market, right? "Ah, but it is only members of the sect that are paying the higher prices." That would be the same thing with employees of the new corporation, right?

The bias scare (my opinion) has appraisers paranoid about mentioning anything that has to do with "special groups". The truth is, the "bias police" (again, my words) is focused on appraisers providing their opinions that are not supported by hard data; that is their definition of bias.

You can't just not mention what is happening. Not only is it poor appraising but it is in fact a form of bias. My take would be to first, not say, "sect". Instead, say something like "private group". Then provide as much hard data that you can, i.e., number of sales, specific price trends, days on market, etc.; everything that you can so that your conclusions are an undeniable statement of fact and not an unsupported opinion.

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.

 

[George Hatch]

Define the market area and then stick to it. The easiest location adjustment to support is the one you don't have to make because it's the same location. Same with most other property attributes, such as facing a certain direction.