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External Obsolescence - 2-4 Surrounded By Apartments

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jackimoya

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Aug 13, 2008
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Certified Residential Appraiser
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California
I acknowledge this may be a stupid question. Normally, would consider the subject (SFR, PUD, Condo) being adjacent to apartments as an external obsolescence. But 2-4 units (which are technically apartments themselves)?
 

BRCJR

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Sep 20, 2005
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State
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What is the H&BU of the subject? If that is a rental unit I would not consider it as adverse.
 

hastalavista

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May 16, 2005
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Not a stupid question! :)

Are the rents impacted due to the surrounding apartments? One would think not. If not, that would imply no EO due to the neighboring properties.

However, I would be remiss if I didn't add this: Is the H&BU as-vacant a 2-4 or should it/can it be developed eventually to a higher density (5+ units)? If so, you may have some functional obsolescence that will shorten the remaining economic life.
 

glenn walker

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Oct 11, 2006
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Certified Residential Appraiser
State
California
California- Not enough info on the Subject is this an- attached condo-pud development -detached single family home ect ? because in high density area like Los Angeles or Orange County often no effect because we have so many mixed use neighborhoods BUT if the Subject is located in a Mayberry type of community then it may have a negative effect. As far as H & B use once again what type of property is the Subject if this is an-attached condo-pud your not tearing it down to built anything else.
 
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J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I acknowledge this may be a stupid question. Normally, would consider the subject (SFR, PUD, Condo) being adjacent to apartments as an external obsolescence. But 2-4 units (which are technically apartments themselves)?

Could depend on size, scale, maintenance of the apartments. Some small income properties in my region are in funky mixed use areas so apartments might be an improvement, or not, depending on traffic, type of tenants renting the apts etc.

Does the proximity of apartments create more competition to attract tenants? ,
 

jackimoya

Sophomore Member
Joined
Aug 13, 2008
Professional Status
Certified Residential Appraiser
State
California
What is the H&BU of the subject? If that is a rental unit I would not consider it as adverse.
Looks like the land use is legal nonconforming because the lot size is smaller than zoning allows. The highest and best use as vacant appears to be a SFR.
 

jackimoya

Sophomore Member
Joined
Aug 13, 2008
Professional Status
Certified Residential Appraiser
State
California
Not a stupid question! :)

Are the rents impacted due to the surrounding apartments? One would think not. If not, that would imply no EO due to the neighboring properties.

However, I would be remiss if I didn't add this: Is the H&BU as-vacant a 2-4 or should it/can it be developed eventually to a higher density (5+ units)? If so, you may have some functional obsolescence that will shorten the remaining economic life.
It looks like the highest and best use as vacant (because of lot size), is a SFR.
 

jackimoya

Sophomore Member
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Aug 13, 2008
Professional Status
Certified Residential Appraiser
State
California
I honestly just don't know if I should check Yes or No for adverse site conditions.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I honestly just don't know if I should check Yes or No for adverse site conditions.

Are the apartments eyesores or well maintained? Are they so tall or dense built out they create a lot of traffic/noise block sunlight?
 
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