"Distant Water View"

[Functional Obs]

I had an assignment to appraise a vacant lot in a peninsula community along the Chesapeake Bay, and the issue of "view" came into play. I was hired by the buyer, directly, to assist him in determining his offer price to the seller. He was already under contract and having another appraisal done by the bank. He hired me for a third-party, independent opinion (and did not provide me with the contract or other information--just his own comments). I should note that I have completed this assignment; however, I may receive follow-up questions still.

The subject is a 1/3-acre wooded lot, sitting in between other residences and across the street from the river. One can see the water if they peer past two across-the-street neighbors (houses and waterfront lots) or to the left across a park (that has a small clubhouse and lots of trees). The water is maybe 300 yards away from the front of the lot.

The listing agent describes the house as having a "waterview;" however, for the VIEW = WATER? section of the MLS, the agent checked NO.

I've attached a picture that I took while standing on the subject's lot. It's about the best angle I could have selected.

Another appraisal, one provided to me after I had completed my assignment, noted the subject had a "distant water view." The appraisal credited the subject for sitting across the street from the water and having an obstructed view. The appraisal used two off-market sales and one old sale to make the point (using other across-the-street sales) when there were two newer/market sales available (also across the street from water) for much lower.

I have my own opinion with regard to whether or not there is value to sitting across the street from the water vs. sitting another block or two further inland, but I want to know what other appraisers think. Do you feel there is value in an obstructed "distant" view? Do you think there should be a third category in the MLS, or is it good as it is as a Yes/No question?

 

[J Grant]

I often find some added value paid for lots across street from water vs several blocks away. use overhead plat maps to check on views because MLS often exagerates.

You can call it limited water view, - distant water view makes it sound like the water is a distance away ( it is not )

 

[TMG]

Looks like a parking lot-basketball court view.

 

[J Grant]

I assume from photo the land across the street can not be developed ?

It is a part green/lmtd water view . Appraiser has to take into context the setting and view which clearly is not just about the water. It is the privacy of a cul de sac and no homes across from subject. That either has some value in an area, or it does not.

It is frustrating if appraisers fail to discuss things in context and just write distant water view and nothing else. The value we bring to the process is explaining a view or site setting in context and what that means in the market.

 

[sputnam]

It is a market question. Do the research and analysis and form an opinon as to the contributory value (market reaction) to a distant water view.

 

[NJAPRAZE]

I had an assignment to appraise a vacant lot in a peninsula community along the Chesapeake Bay, and the issue of "view" came into play. I was hired by the buyer, directly, to assist him in determining his offer price to the seller. He was already under contract and having another appraisal done by the bank. He hired me for a third-party, independent opinion (and did not provide me with the contract or other information--just his own comments). I should note that I have completed this assignment; however, I may receive follow-up questions still.

The subject is a 1/3-acre wooded lot, sitting in between other residences and across the street from the river. One can see the water if they peer past two across-the-street neighbors (houses and waterfront lots) or to the left across a park (that has a small clubhouse and lots of trees). The water is maybe 300 yards away from the front of the lot.

The listing agent describes the house as having a "waterview;" however, for the VIEW = WATER? section of the MLS, the agent checked NO.

I've attached a picture that I took while standing on the subject's lot. It's about the best angle I could have selected.

Another appraisal, one provided to me after I had completed my assignment, noted the subject had a "distant water view." The appraisal credited the subject for sitting across the street from the water and having an obstructed view. The appraisal used two off-market sales and one old sale to make the point (using other across-the-street sales) when there were two newer/market sales available (also across the street from water) for much lower.

I have my own opinion with regard to whether or not there is value to sitting across the street from the water vs. sitting another block or two further inland, but I want to know what other appraisers think. Do you feel there is value in an obstructed "distant" view? Do you think there should be a third category in the MLS, or is it good as it is as a Yes/No question?

Hi Rick. Great question that perhaps I can provide some insight/help. I do a lot of work along both DE and NJ shores... and this actually comes up often.

Firstly, do not think another MLS category is needed --- as realtors will find some other creative "marketing" way around it.

Regarding water views -- clearly unobstucted views (bay, river, lake, ocean, etc.) tend to have a positive impact on overall value (unless there's a waste processing plant or some other externality present). If a home is situated across the street and still unobstructed -- value is there so long as nothing can be built on the "water side" / across the street that will ultimately obstruct (for ex:: beach block street... home is across the street from beach with ocean views from 2nd & 3rd fls -- until homes start being built on the beach side, between the street and dunes, yielding a largely "obstructed view" similar to your situation).

Regarding "obstructed view" - it really depends on what is typical for your market. I find that in many areas along NJ & DE shores... "obstructed views" are largely a marketing tool by realtors to enhance appeal and that they do tend to yield a positive impact to overall value (but... to a very significantly lesser degree than a home with direct, unobstructed views); as the appraiser - armed with our knowledge of the local market, data, etc. - it's up to us to evaluate a home's given view and then adjust accordingly versus the comparable sales (i.e. are they similar, inferior, or superior?); is the "water view" really a spec in the distance or an actual view? can you actually see waves, boats, etc or just the impact on a distant horizon? do you have to maneuver to a specific angle or limited spot in the home just to see a 'minimal scene' / viewing between other homes - how 'limited' or obstructed is it?

Personally, I think it's really more of a 'location' impact, rather than the "obstructed view," that has a greater impact on overall value (unless the home is direct waterfront and/or has an unobstructed view); in NJ towns like Ocean City, Longport, etc. - the closer you are to the beach/water... the block values tend to go up (i.e. water side vs across the street); this isn't necessarily true in all areas, though, for instance - in Dewey, DE (a narrow barrier island town), a centrally located 3-story home may afford panoramic views of both Delaware Bay/Atlantic Ocean to the East AND Rehoboth Bay to the west with no major value impact attributed to location (i.e. you're either waterfront or not).

Remember -- appraisals are ultimately a subjective opinion (derived by the market data, your experience/knowledge of the area, etc.) that is communicated by YOU -- the local expert. No right or wrong so long as you can support and justify what it typical for the market.

If you're questioning yourself over the other appraisal... some credit given for a partial/obstructed view is not unreasonable, based on my experience; again - ultimately it's up to you to decide if doing so is reasonable / typical for your market AND if such a view is truly present and/or warrants an adjustment in the SCA grid relative to the comparables.

Personally -- I'd be questioning other appraiser's use of "off-market" sales to base value upon as there is often no major means of verification of the key details, often "negotiated" by realtors/participants without true mkt exposure, and over recent months... private frontrunning may have yielded sale prices higher than FMV, etc. --- but that's a separate convo/debate!

Hope this rant was helpful!

 

[J Grant]

OP"Another appraisal, one provided to me after I had completed my assignment, noted the subject had a "distant water view." The appraisal credited the subject for sitting across the street from the water and having an obstructed view. The appraisal used two off-market sales and one old sale to make the point (using other across-the-street sales) when there were two newer/market sales available (also across the street from water) for much lower."

WHO "provided" the other appraisal to you? They provided it after you completed your assignment ? Who are they -

an appraisal ignoring 2 market exposed newer sales to use non market older sales is suspect imo -but what made reviewing another appraisal now part of the assignment?

 

[spittman]

We have a couple of lake communities here. In addition to the water/lake view category, our MLS has a "water/lake access" category. Now although I think some agents misuse this category I have come across evidence that the closer the property is to the lake, the more exclusive, regardless of the view and prospective buyers will pay top dollar. We even have this weird little lake community where the property has two parcels of land. One parcel is the lake front side and the other parcel is located on the other side of the street. I'm not even sure how this happens where a public street is cut across your property, but people do pay a premium for such things. Only you know your market better than anyone here in the forum, but I do think that some markets recognize value in properties located across the street from the actual waterfront properties.

 

[Terrel L. Shields]

You can call it limited water view,

That makes sense. It's like the "lake view" but only if you look out the south window of the second floor. On a nearby lake, I've seen a lot of difference in the value of a lakeside lot with "dockable" water vs lake side lot without potential to build a dock vs lake view and no lake view but within half mile or so. It was like the old 1-2-3-4 rule, A 40k non-view lot was $160k if dockable lot. A 'limited' view seems to run more than none but marginally so.

 

[glenn walker]

I had an assignment to appraise a vacant lot in a peninsula community along the Chesapeake Bay, and the issue of "view" came into play. I was hired by the buyer, directly, to assist him in determining his offer price to the seller. He was already under contract and having another appraisal done by the bank. He hired me for a third-party, independent opinion (and did not provide me with the contract or other information--just his own comments). I should note that I have completed this assignment; however, I may receive follow-up questions still.

The subject is a 1/3-acre wooded lot, sitting in between other residences and across the street from the river. One can see the water if they peer past two across-the-street neighbors (houses and waterfront lots) or to the left across a park (that has a small clubhouse and lots of trees). The water is maybe 300 yards away from the front of the lot.

The listing agent describes the house as having a "waterview;" however, for the VIEW = WATER? section of the MLS, the agent checked NO.

I've attached a picture that I took while standing on the subject's lot. It's about the best angle I could have selected.

Another appraisal, one provided to me after I had completed my assignment, noted the subject had a "distant water view." The appraisal credited the subject for sitting across the street from the water and having an obstructed view. The appraisal used two off-market sales and one old sale to make the point (using other across-the-street sales) when there were two newer/market sales available (also across the street from water) for much lower.

I have my own opinion with regard to whether or not there is value to sitting across the street from the water vs. sitting another block or two further inland, but I want to know what other appraisers think. Do you feel there is value in an obstructed "distant" view? Do you think there should be a third category in the MLS, or is it good as it is as a Yes/No question?

No but in CALI the Realtors call those Peek-A-Boo Views : ) LMAO