Double Dipping?

[38Scarcello]

Inspected a home in a rural location yesterday with few sales.
A comparable I have in question is located on waterfront, and
obviously a 'superior' view. Would it be considered double
dipping if I made udjustments for 'location' and 'view'?? It's
not the best comparable, but there ain't nothing out there!

 

[Rufus]

Analyze the market where the comp is located. Determine a location adjustment based on non-waterfront properties. Then analyze the impact from the waterfront to get that adjustment.

 

[PropertyEconomics]

Inspected a home in a rural location yesterday with few sales.
A comparable I have in question is located on waterfront, and
obviously a 'superior' view. Would it be considered double
dipping if I made udjustments for 'location' and 'view'?? It's
not the best comparable, but there ain't nothing out there!

If from an adequate data set you can determine separate adjustments for location and view then I dont think it would be double dipping. Make sure to make one adjustment ... and then the other, ie, make your location adjustment to the comparable, and then make the view adjustment to the adjusted value of the comparable (after the location adjustment has been considered). Compounding adjustments would be improper.

 

[Financially Feasible]

Inspected a home in a rural location yesterday with few sales.
A comparable I have in question is located on waterfront, and
obviously a 'superior' view. Would it be considered double
dipping if I made udjustments for 'location' and 'view'?? It's
not the best comparable, but there ain't nothing out there!

Patrick - you must have just taken a class with Mark Smeltzer, SRA. :icon_mrgreen: That's his biggest pet peave is "don't double dip".

You have to look at the comparable. If the comp was in a superior development where only a portion of those homes were on waterfront, then you'd be right to do a location adjustment for the superior development and a view adjustment for water view. However, if the comp comes from a development which is similar to the subject's development except for that portion of the development where some homes have a water view, then I'd just do a view adjustment. Either way, it sounds like you'll "have some 'splainin to do!" :new_smile-l:

Also - what kind of "water view" does the comp have? In my coverage areas, a "water view" has been known to be anything from a prime cliff overlooking the Atlantic Ocean to a small street with a fresh view of a retention pond. :Eyecrazy: Always explain the, for lack of a better word, "intensity" of the water view.

edit: I forgot... in rural areas there probably aren't "developments". Therefore, good luck!

 

[Ray Miller]

In a rural area some times you got to do what you got to do.

I would think not as long as you can support the adjustments.:new_all_coholic:

 

[Mark to market]

I have seen people combine view and location adjustments when they are unable to separate them.

 

[JRS at OBX]

Some waterfront locations have better views than others.

 

[Mztk1]

If your rural location of the subject is similar to the rural location of the comp I wouldn't make a location adjustment, just a view adjustment. But if your comp is located in a rural area that has superior appeal (maybe closer to the interstate, or developed as equestrian country) compared to your subject, then it would make sense to adjustment for both.

If all else is equal though, and you are adjusting for "lake location" and also for "lake view", I think you are giving the appearance of double dipping and might find it easier to explain by putting it all under one adjustment.

 

[EVAUSA]

Some waterfront locations have better views than others.

Yep. Today I had comps all over the Channel Islands Harbor, some with views of the main channel while others had views of their little cul-de-sack. Both comps had similar access to the outlet, in fact the one off the channel was actually closer, so I knew the value difference wasn't location. But I do feel your pain. In the beach neighborhoods, values go up almost $1Mil just crossing the street to be ON THE SAND. It wasn't until last year that I could actually prove with comps that the value difference was about 50/50 view/location. I had a comp across the street from the sand with a wide open, dedicated public access lot in front of it giving the comp unobstructed panoramic ocean views, but the sales on the sand were still about $500K more.

 

[c w d]

Some waterfront properties don't have a view. Most do, but some don't. I would not adjust for view AND location on waterfront unless I had properties with and without waterviews but all having water frontage.