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Distance From Ocean As A Factor In Determining Property Value
- Thread starter OBX Dan
- Start date
- Status
Person of Noninterest
Junior Member
- Joined
- Jul 17, 2013
- Professional Status
- Certified Residential Appraiser
- State
- Florida
It is up to the appraiser to decide which comparables are most relevant to the assignment. Notwithstanding, adjustments must be applied properly in order to develop a reasonable opinion of market value.
In the ritzy coastal communities here, distance to the Gulf of Mexico is often a significant value factor. In many cases I have added a separate criterion for distance to the water line, and applied adjustments based on distance as measured in aerial photography. Many homes are marketed as first tier, second tier, etc., so it would be reasonable to assume that an adjustment could also be supported through this type of evaluation.
Does the appraiser provide rationale for the omission of adjustments relating to distance? Are there enough sales in the area to support the derivation of a location-based adjustment value? These are questions that must be answered in order to determine to what extent the appraisal may be deficient. If the answers to the questions are no and yes, correspondingly, then it might be a good idea to get a second opinion.
In the ritzy coastal communities here, distance to the Gulf of Mexico is often a significant value factor. In many cases I have added a separate criterion for distance to the water line, and applied adjustments based on distance as measured in aerial photography. Many homes are marketed as first tier, second tier, etc., so it would be reasonable to assume that an adjustment could also be supported through this type of evaluation.
Does the appraiser provide rationale for the omission of adjustments relating to distance? Are there enough sales in the area to support the derivation of a location-based adjustment value? These are questions that must be answered in order to determine to what extent the appraisal may be deficient. If the answers to the questions are no and yes, correspondingly, then it might be a good idea to get a second opinion.
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