HBU

[Gregory A Hicks]

So neither this property nor the other homes have a sales history? Because the comparison doesn't need to consist of recent sales. You're not looking for direct comparables for your SC grid. You're looking for sales you can use to develop an adjustment factor you can import to apply to your current comps.

Your other alternative is to seek out sales in other similar counties and compare those to their respective comps.

That expanded analysis is what I’m working on now.

 

[J Grant]

That expanded analysis is what I’m working on now.

You sound like you are doing a very thorough job! One thing you can do is look up a couple of sales that did occur in the subject small area of not county water and compare those sales to other sales of similar size at the time - if house A down the street sold 3 years ago and house A is 2200 SF, then compare it to other similar size houses that sold 3 years ago on city/county water and compare if there is any price reaction in the market - if you lack any good data then reconcile it at lower end of the value with the info that most buyer prefer city/county water to well.... esp if a future assessment or a hookup connection might happen but it does not always happen either sometimes the county pays to run water to a section - it is a pre-foreclosure, you can't look inside, the value can only be "so good"...in these conditions.

 

[J Grant]

I updated the lender to see if they had a prior report that might show whether this is on private well or cistern because county records do not have this data.

IF you lack this data for the subject simply put it is unknown due to not having access to the owner or a property inspection and state it does not have a water hookup and would be on either well or a cistern.

 

[George Hatch]

I wouldn't expect to find a significant adjustment factor unless the water quality is low.

 

[Gregory A Hicks]

You sound like you are doing a very thorough job! One thing you can do is look up a couple of sales that did occur in the subject small area of not county water and compare those sales to other sales of similar size at the time - if house A down the street sold 3 years ago and house A is 2200 SF, then compare it to other similar size houses that sold 3 years ago on city/county water and compare if there is any price reaction in the market - if you lack any good data then reconcile it at lower end of the value with the info that most buyer prefer city/county water to well.... esp if a future assessment or a hookup connection might happen but it does not always happen either sometimes the county pays to run water to a section - it is a pre-foreclosure, you can't look inside, the value can only be "so good"...in these conditions.

Thanks for your help. Appreciate it.

 

[sputnam]

Although it's possible that the previous appraiser got it right and the County Water Dept is wrong.... it's more likely that the Water Department is correct. Anytime there is conflicting information, the appraiser has to judge which source is more authoritative. If the Client agrees, you could use an Extraordinary Assumption (since you don't know) or, if you conclude that the County is correct, a Hypothetical Condition. Personally, I would probably go with what the County says and use the EA.

 

[J Grant]

Although it's possible that the previous appraiser got it right and the County Water Dept is wrong.... it's more likely that the Water Department is correct. Anytime there is conflicting information, the appraiser has to judge which source is more authoritative. If the Client agrees, you could use an Extraordinary Assumption (since you don't know) or, if you conclude that the County is correct, a Hypothetical Condition. Personally, I would probably go with what the County says and use the EA.

Either use an EA or simply state you considered the county information the most reliable , and that users or clients are recommended to get their own water source survey or inspection done