Grid adjustment question

[J Grant]

Again it is baked into the location cake. And air rights are real property rights...and yes you can sell your air rights above the building if you own the fee simple. You only own the space and the building and land are owned in common. So you are buying the location and air space which is again, valued on the basis of the location, view and height above the ground.

"In real estate, air rights are the property interest in the "space" above the Earth's surface. Generally speaking, owning or renting land or a building includes the right to use and build in the space above the land without interference by others."​

You are too full of yourself to realize or even care that you are giving terrible advice on real estate. What you are saying is way out of line with market evidence and peer practice from people who actually appraise these properties on a daily basis.

 

[J Grant]

Again it is baked into the location cake. And air rights are real property rights...and yes you can sell your air rights above the building if you own the fee simple. You only own the space and the building and land are owned in common. So you are buying the location and air space which is again, valued on the basis of the location, view and height above the ground.

"In real estate, air rights are the property interest in the "space" above the Earth's surface. Generally speaking, owning or renting land or a building includes the right to use and build in the space above the land without interference by others."​

Air rights above EXISTING buildings get sold or traded for millions of dollars in urban areas and are their own market apart from normal rights that come to build on land .

 

[J Grant]

Hedge Fund Billionaire and Developer to Buy St. Patrick’s Air Rights for up to $164 Million​

The deal, first reported by Bloomberg, may cost up to $164 million. The Archdiocese of New York plans to use these funds to preserve the historic cathedral. Billionaire Ken Griffin and Vornado Realty Trust headed by Steve Roth plan to use the air rights to build a new office skyscraper.​

Does this kind of specialized exotic market of air rights applies how, to a normal condo unit or SF house purchase? it doesn't.

 

[J Grant]

appraising air rights is way above my paygrade but sounds interesting - I imagine the fees are good too---

Money out of thin air: Appraising air rights Jun 10, 2013​

William Wilgus, the first person to figure out that property owners could sell the right to develop the space above their lots, coined the phrase “taking wealth from the air.” Empty space generating income — an exciting idea. Of course, Wilgus wasn’t an appraiser. It’s easy to say you can sell the sky, but what’s a fair price? How do you value it?

Valuing air rights was an interesting challenge when we did an appraisal on a mixed-use skyscraper back in 1998. This case is also noteworthy because the property was the subject of a U.S. Supreme Court case, in which our appraisal was used as evidence. Here’s an overview of air rights issues and how they’re appraised.

How Air Rights Issues Arise

Wherever there are skyscrapers, there will be air rights issues. They commonly arise when an entity wants to own only specific floors of a proposed building or when an entity wants to develop a property and desires to maximize value of the development envelope.

Chicago saw an air rights controversy back in 2009, when the Fourth Presbyterian Church tried to sell the air rights to one of its lots. The church wanted to build a 1,700-foot skyscraper and retain the rights to the first six floors. The value of the 600-odd feet above the church’s offices? A staggering $25 million. However, the deal never went through, as it was blocked by an alderman.

In a successful air rights case, New York City gave Forest City Ratner Company (FCRC) air rights in downtown Brooklyn in exchange for the cost of a new subway station. The structure, which just opened, is composed of the subway station on the bottom and the Barclay Center arena on top. FCRC ended up paying $76 million for its air rights.

How to Value the Sky

 

[David S]

Agreed. Right now I only do the adjustment for GLA, lot site, condition ( the reviewer said don't do age adjustment alone since you have no way to set $500 or $1,000 per year. Just put this into condition consideration) , location (next to Frwy, busy road, power / cell tower, gas station, shopping plaza, etc. ) and other major component, like pool (even w or w/o pool, there is no price / value difference in my local market), owned solar pane, outbuilding (not ADU Yet).Set ZERO adjustment for deck / porch / balcony , fireplace and air condition and heating (of cause the house must have heating capability to meet local law. Otherwise will adjust as function obsolescence) since those few $K thing has no major impact to the multi-million house price / value here.

But for the small, low price condo, I still do those adjustment since $5K would be about 1% of $500K condo price.

 

[Tom D]

i did a penthouse, high rise condo,. the 2 story unit was on the roof, with half of the roof being a marble patio. it was like being near the clouds with unobstructed views.

 

[Terrel L. Shields]

I guess I never thought of "the view" being baked in with the value of the land.

Why is the view different just because there is no house... I mean I guess if you built a 4 story on a site you could see further...whatever. So why do people build on the top of ridges in rural areas? Same reason, to arbitrage the commanding height's "view" and why they pay a premium over it before they built.

folks will build a 3 story home JUST to have a view of the lake

And will bult a 3 story in FRONT of another house which makes for bad neighbor relations.

 

[alebrewer]

Why is the view different just because there is no house... I mean I guess if you built a 4 story on a site you could see further...whatever. So why do people build on the top of ridges in rural areas? Same reason, to arbitrage the commanding height's "view" and why they pay a premium over it before they built.


And will bult a 3 story in FRONT of another house which makes for bad neighbor relations.

haha. Yep... such is the case for lake markets.

 

[Carnivore]

I found this using AI enhanced google

Artificial intelligence (AI) is unlikely to fully replace real estate appraisers, but it can help support their work and speed up some labor-intensive aspects. AI can provide data-driven insights and enhance the ability of appraisers to produce more reliable results with greater accuracy. However, the human element is still essential for interpreting data, considering unique property features, and making final decisions that require contextual understanding and expertise.



Hypewired

 

[J Grant]

I found this using AI enhanced google

Artificial intelligence (AI) is unlikely to fully replace real estate appraisers, but it can help support their work and speed up some labor-intensive aspects. AI can provide data-driven insights and enhance the ability of appraisers to produce more reliable results with greater accuracy. However, the human element is still essential for interpreting data, considering unique property features, and making final decisions that require contextual understanding and expertise.


View attachment 86058
Hypewired

F** AI - it delivers little of value, just spits back what is put in, the most derivative same as all the rest writing and art and data driven crap shoot is it wrong or right with RE agency and appraisals - it is designed to make the software companies money and put other out of work or lower demand or pay - people have to get smart about using back on it and many are after the initial oh it's so awsome look at the tricks it can do -
yes because it stores memory it can "pass" the bar exam but can it function as a lawyer - no and who wants it to anyway ---