Grid adjustment question

[Terrel L. Shields]

they pay for a view in a condo when there is no lot component.

They are buying "location" and situs is an element in a condo. Air rights are no different from surface rights.

 

[J Grant]

They are buying "location" and situs is an element in a condo. Air rights are no different from surface rights.

regardless of location which is always baked into price, -
- buyers pay additional for views. It has nothing to do with air rights, which are commercial development rights that can be purchased.

 

[Terrel L. Shields]

It has nothing to do with air rights

Your condo gives you the rights to the space you occupy as "air rights". Classic appraisal textbook.

 

[J Grant]

Your condo gives you the rights to the space you occupy as "air rights". Classic appraisal textbook.

You do not do res mortgage work, and you are not appraising condo units; why are you posting and giving terrible advice on it? It is not the first time about res either; I am normally too polite to say it, but your advice is totally off base.

Air rights are development building rights and have nothing to do with views or condo unit prices

 

[Terrel L. Shields]

You do not do res mortgage work, and you are not appraising condo units; why are you posting and giving terrible advice on it? It is not the first time about res either; I am normally too polite to say it, but your advice is totally off base.

Which makes a rat. Go look it up. What are you buying in a condo? The space. period and those are measured above the ground. You need to buy at least one appraisal textbook in your life. FNMA's Selling Guide is NOT a textbook. Whether those rights are owned outright or shared with the other Condo owners, you are basically getting the right to use a space above the surface.

Most condominium ownership is structured around the concept of air space. This means that the building, walls, and common areas are owned communally by all owners through the homeowners association (HOA). Thus, the individual condominium owner only controls the air space created by the walls of their unit.​

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[J Grant]

Which makes a rat. Go look it up. What are you buying in a condo? The space. period and those are measured above the ground. You need to buy at least one appraisal textbook in your life. FNMA's Selling Guide is NOT a textbook. Whether those rights are owned outright or shared with the other Condo owners, you are basically getting the right to use a space above the surface.

Most condominium ownership is structured around the concept of air space. This means that the building, walls, and common areas are owned communally by all owners through the homeowners association (HOA). Thus, the individual condominium owner only controls the air space created by the walls of their unit.​

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You are something else, continuing to write about a type of property you do not appraise

Air rights are commercial building-up rights above an existing building. Look it up. Condo owners own the unit, including a portion of the walls, they share the common areas of the building and none of what you are distracting everybody about has anything to do with the FACT, that buyers often pay for view alone, as an appeal item, both in condos and in SFR.

 

[J Grant]

“Air rights” refers to a real estate owner’s license over the vertical space extending above their property. Property owners gain the rights to the land beneath the physical property as well as the airspace above it, which can offer significant development opportunities.

That said, any potential vertical development must consider air traffic and the interest of neighbors. Usage and development of airspace must not hang over into a neighbor’s airspace or else the neighbor has the right to remove said structu

 

[alebrewer]

WRT a lot held in fee simple (i.e. condos aside), I've always found it interesting that - even though external influences ARE part of the site value - they're broken out in the 'form' cost approaches. IOW - when you state the site value, that should encompass any external influence. View, OTOH, can be tricky. View can be attributable to the site value, but can also be enhanced by the improvements. As any lake property appraisers can attest, folks will build a 3 story home JUST to have a view of the lake - which DOES enhance value, but there is no view from the ground as it were. The three tend to overlap, which I think has led to a lot of misunderstanding as the forms have them as three distinct adjustment areas (location, view, and site size).

As an aside - and I know no one gives a r-*&s *** about what Ale likes - this is the stuff I REALLY enjoy on AF.

 

[Terrel L. Shields]

buyers often pay for view alone,

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."​

 

[Surf Cat]

I guess I never thought of "the view" being baked in with the value of the land. I always thought of the "proximity" of the land, being close to the ocean for example or being in.... should I say it? Okay, I will.... a desirable neighborhood.

Just like you can't value real estate solely on linear regression or other number crunching calculations, the view is a status thing. It has that emotion involved which is difficult to put a finger on and....subjective. Once again, it takes a couple comparables with a similar degree of "the view" to fetter the market reaction out.

Besides.....Fannie put it as a separate line item on the forms and that's the way they want it done.