House next door condemned

[JTAbq]

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.

 

[Terrel L. Shields]

DANGIFINO

 

[Flakey]

The Subject property is a sale for full market value and was on the market for less than 30 days

This is probably your answer

 

[swandel1]

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.

 

[Fernando]

Major changes on adjacent properties do affect subject.
For example, there is this apartment building which has been on market for long time. Finally the new construction of a huge apartment building (with some affordable units of course forced to be included by city) is apparent for potential buyers to see and hear. The loud construction and sight will continue for at least a year.
Renters in subject property would move or expect lower rent for the inconvenience.

 

[J Grant]

Major changes on adjacent properties do affect subject.
For example, there is this apartment building which has been on market for long time. Finally the new construction of a huge apartment building (with some affordable units of course forced to be included by city) is apparent for potential buyers to see and hear. The loud construction and sight will continue for at least a year.
Renters in subject property would move or expect lower rent for the inconvenience.

Very different situation from the OP

 

[Fernando]

Very different situation from the OP

My situation for sure had a detrimental effect.
OP needs to do more research to see if market has effect on subject.

 

[J Grant]

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.

I would not get that involved, because you might be liable for info about demolition that might turn out to be false.

Simply state that the property next door has a commend notice on it, and per the marketing time and full price offer for the subject, it has not impacted subject marketability.

 

[Fernando]

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.

 

[JTAbq]

Thank you everyone for your input, I like the J Grants response, that may be the best direction to go in with the limited information I can find.