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Golf Frontage

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cheftso

Thread Starter
Freshman Member
Joined
Mar 4, 2007
Professional Status
Certified Residential Appraiser
State
Florida
I have an underwritter asking a question WHY am I using Golf Frontage homes that is 7-8 Months old. My subject is on the 18th hole of a golf course where the lots sell for 125k for view and 250 frontage. I used 2, 8 month old comps same view same hole same floor plan with a pool. I have comps that sold this year but not on the golf course so I gave them a view adjustment. The underwritter wants me to explain why my comps are old. In the report I had stated, Due to lack of Golf frontage sales the appraiser had to go back 7-8 months to find comparables golf frontage sales. The closest competing neighborhood is 10-15 miles away in a different city

Does anyone know what kind of verbage they are looking for
 

Annelle

Junior Member
Joined
Jan 26, 2004
Professional Status
Certified General Appraiser
State
Arizona
Did you do a time adjustment? Or if not, why not. Is it possible to do a paired sales analysis of frontage and non-frontage, and use that to adjust the more current comps? Just some ideas. The underwriter sounds like he/she is just looking to be reassured, and just a little more explanation. They are a little more nervous these days.

And just out of curiousity why isn't your mentor helping you with this? Not that you aren't welcome... just kinda concerned.
 
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cheftso

Thread Starter
Freshman Member
Joined
Mar 4, 2007
Professional Status
Certified Residential Appraiser
State
Florida
Yes still not happy. They want me to expain why there is no newer comps
 

Annelle

Junior Member
Joined
Jan 26, 2004
Professional Status
Certified General Appraiser
State
Arizona
Edited while you were responding...
 

Annelle

Junior Member
Joined
Jan 26, 2004
Professional Status
Certified General Appraiser
State
Arizona
How about using your frontage one as a 4th comp, and a 5th pending if available? That way their underwriting guidelines of 3 closed sales within 6 months are met, while you still get to use "the best comp".
 

Abester

Senior Member
Joined
Jun 12, 2003
Professional Status
Certified General Appraiser
State
Florida
Or, tell them you are the appraiser and they may respectfully kiss off...
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I'd go with the three most recent sales as comps #1, #2 and #3. Add your golf course lots as comp #4 and #5 and add a sixth comp that sold at the same time as your golf course lots but that is similar to comps #1, #2 and #3. Extract the golf course adjustment from comps #4, #5 and #6 and adjust based on a percentage, then determine market depreciation comparing comp #6 to comps #1, #2 and #3 but back up the depreciation with median value figures for your county and for your market. You may have to add a listing or two as well.
 

Jim Buckner

Sophomore Member
Joined
Dec 30, 2004
Professional Status
Certified General Appraiser
State
Arkansas
I say if you think these are the best comps then stick with them. It sounds like the underwriter does not play the grand game of golf and does not understand its instrinsic constributions to real estate values. If you fully explained your logic in the report then the UW is just too dense to comprehend.
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
Are there any active listings of golf course frontage homes, that might indicate that the market is declining?
 

Ed Falkowski MAI SRA

Senior Member
Joined
Jun 25, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
Lloyd - love the avatar. 12th at Augusta National. My ultimate goal is to appraise that piece of property (I'd do it for FREE if they let me play just once on the course). Of course... I'd need to get my CG... and they'd probably want an MAI... the little things. :icon_mrgreen:

Back to the point of the thread: yes, I definitely agree that active/pending listings (if available) would be good to throw in there as additional comps. Also, are there any competing golf course developments in the vacinity with newer sales? That might be a good idea if there are truly a lack of recent sales/actives/pendings (although if one course is Augusta national and the next is your local muni then they obviously wouldn't be comparable no matter what!). I also agree that UWs are a little more cautious now-a-days so explaining yourself more thoroughly is definitely necessary on most assignments. Also, and I think that this question was asked in a previous post, what does your mentor say on this subject or is he/she stuck, too?
 
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