How do you define a prime location?

[J Grant]

When the market shows positive or negative value reaction for location of a comp in a report compared to subject location, typically appraiser will make an adjustment for it. (what you term assign/attribute value)

In an income property, a superior location should be returning superior rent and low vacancy, so the market shows value that way as well.

 

[normando]

An appraiser knows prime location whether it's terrain, school district, crime, detrimental neighbors, views, etc. Usually market pays premium for desirable locations. If an appraiser can not see property is on prime location, you ain't a good appraiser.

 

[valuequestor]

Desirable

I've seen the word "desirable" used at least 6 times in this threat to describe location or a neighborhood. I was just told to remove it from Neighborhood Description because it "violates fair lending guidelines". Is this evil word just being used within the confines of the "Forum" or is it finding its way into the reports of my brother and sister appraisers ? Please see my thread under Improving the Profession. :new_all_coholic:

 

[KenAZ]

If you live next door to this guy, you definitely have a prime location

Running with Team Bear: My son Sawyer Bear my dog Optimus Prime and his Girlfriend Budz

 

[KenAZ]

Sorry about that previous post. That was the wrong Prime.

Now THIS would be a prime location !

 

[valuequestor]

Oh No! There goes Tokyo!

 

[normando]

I never use the word "desirable" in my reports but we're among friends here so I tell it as it is. Poor areas are not desirable! Flood zone areas are not desirable! Inferior construction is not desirable! Living next door to a neighbor who fixes his cars on the driveway is not desirable! Next door with a big RV is not desirable! Living next door to barking dogs is not desirable! Notice that I consider adjacent properties having affect on subject.

 

[gregb]

I never use the word "desirable" in my reports but we're among friends here so I tell it as it is. Poor areas are not desirable! Flood zone areas are not desirable! Inferior construction is not desirable! Living next door to a neighbor who fixes his cars on the driveway is not desirable! Next door with a big RV is not desirable! Living next door to barking dogs is not desirable! Notice that I consider adjacent properties having affect on subject.

Subject is located in an area of primarily owner-occupied homes while comparables #4 and #5 are located in an area that is comprised of a higher percentage of more tenant-occupied homes, warranting positive location adjustments for the difference in market appeal and reacation by market participants.

 

[normando]

Why choose comps in a tenant occupied area? Stick with similar owner occupied areas. Location adjustments are difficult to quantify.

 

[Amy Perkins]

It means it's pretty there, better than other places in the market.