J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
D-The above quote you cite was a "non-real world" example where all buyers had the same purchasing power; it was used to show that occupancy costs can have an impact on price.
My example is real world...In the real world, buyers do not all have the same purchasing power. Thus, different type and quality and cost properties attract different buyers according to the buyers income and preferences.
The question is, are there enough buyers of a certain income purchasing power to create steady demand for higher price propertie? If yes, the sellers would not lower the price of such a property just to accommodate a cash strapped buyer. If the market is weak for a higher price properties ( not enough buyers with purchasing power for it) then the sellers lower price to attract a wider pool of buyers...but the lower price already then reflected impact of higher HOA fees, so why is appraiser the price? ( double dipping)
Most times vastly different HOA fee condos are not good comps for each other,; while moderate difference among HOA fees the sale price already reflects market reaction (if there is one )
My example is real world...In the real world, buyers do not all have the same purchasing power. Thus, different type and quality and cost properties attract different buyers according to the buyers income and preferences.
The question is, are there enough buyers of a certain income purchasing power to create steady demand for higher price propertie? If yes, the sellers would not lower the price of such a property just to accommodate a cash strapped buyer. If the market is weak for a higher price properties ( not enough buyers with purchasing power for it) then the sellers lower price to attract a wider pool of buyers...but the lower price already then reflected impact of higher HOA fees, so why is appraiser the price? ( double dipping)
Most times vastly different HOA fee condos are not good comps for each other,; while moderate difference among HOA fees the sale price already reflects market reaction (if there is one )
