House next door condemned

[ZZGAMAZZ]

I hate it when my rental property is vacant. Homeless would sleep there at night.
Another time, I had to pay for a temporary perimeter fence around my parking lot to keep troublemakers into my property.
Also when vacant, some dump their large trash onto the site. Unsightly and depreciate values near there.

How does a CA owner get compensation for Section 8 tenant? Also, several budget motels in my hood allegedly are jam packed with homeless folks on the city or county dole.

 

[Surf Cat]

Very different situation from the OP

Squirrel!

 

[Sandra Koutsopoulos]

I inspected a house yesterday and the home next door is condemned. ...The Subject property is a sale for full market value and was on the market for less than 30 days. ... Finally, I did an AI search, and it suggest nationally that it could reduce the value 5% to 15% but I wasn't satisfied with any of the sources it provided. Does anybody have any suggestions on how to properly handle the situation.

It appears that the condemned property next door did not scare away the buyer who offered full list price. Was the list price slightly lower than typical in that market, or comparable to others without condemned properties next door? If it was priced at the low end of the market, and sold there, that's your answer. If it was listed at full market value and sold for that, then THAT is your answer. It appears the condemned property did not have an adverse impact on market value.

 

[Tom D]

My thought is that since the property has been condemned already, that this is just a temporary situation. I don't know what the time frame or protocol is in your location for demolition, but that is something you could look up and cite in your commentary.

What is the quality of the neighborhood. Will it be rehabd, and bring values up. Or, will it sit there a very long time eyesore cause the authorities don't want to spend $ to tear it down. Condemned doesn't mean falling down. Just could be very old inside. Maybe some problems.

Big city, have 40,000 vacant properties, you know in certain areas. Sitting there a long time, city started to tear some down, owner gets bill, if still alive. The last extremely low interest rate years changed some of these areas i don't want be there, to new construction/rehabd row homes at the high end.

You can drive around to see if there are more boarded in the area, or is this one is an outlier.

Big old urban. And you rural people think you have a hard appraisal life.
Well, maybe you still do.

 

[Tom4value]

I inspected a house yesterday and the home next door is condemned. The home is boarded up and has signs from the city posted in multiple locations. I need to disclose this in my report, but I have been unable to quantify the impact, if any, on value. The Subject property is a sale for full market value and was on the market for less than 30 days. I have contacted the city, but they can only give me information if a do a public records request. Who knows what information I will get and how long it will take to get it. I searched for other sales near the property for the last five years and there wasn't any. In addition, our city has a list of the top fifteen nuisance properties which includes some condemned houses. I have looked for sales adjacent to several of those listed properties. There was one sale across the street from one of the nuisance properties two years ago, but I am unable to determine if occurred during time the neighboring property was condemned. There is no other online record of condemned houses here. Finally, I did an AI search, and it suggest nationally that it could reduce the value 5% to 15% but I wasn't satisfied with any of the sources it provided. Does anybody have any suggestions on how to properly handle the situation.

Someone here mentioned the subject history as proof and that is correct. I will add that interviewing the listing broker and other brokers who listed similar properties in the same situation and putting the results into the report is very helpful when you don’t have a lot of data.

 

[Fernando]

How does a CA owner get compensation for Section 8 tenant? Also, several budget motels in my hood allegedly are jam packed with homeless folks on the city or county dole.

I remembered I stayed at a budget motel during Covid in LA. I was wondering why these poor folks were staying there too.

 

[NC Appraising]

Food for thought or devils advocate

It was not affected because it went under contract at MV and within 30 days....

Would it have sold more if Mr. Roger's lived next door?

What if the agent purposely priced the home at a very competitive price due to the home next door? What are the comps dom? 5, 10, 15 or 30?

What if the sellers needed a quick sale? Supply and demand?

High demand, low supply....buyers are over looking it or discounting at a lower rate?


Finally, how about contacting the listing agent and the buyers agent for actual market data?

Listing agent: how many offers? What was the feedback? Any feedback on the home next door?

Buyers agent: did the home next door negatively affect the buyers thoughts on the subject property? *we can discuss things with the agents. I realize there is a fine line. Ill let the USPAP experts chime in if we can ask the buyers agent if the home next door affected the price..


I also understand that they may lie....or may not be 100% truthful. But it is better than ASSUMING.