How do you value different school districts?

[oldguard]

I have had to go out a ways to find similar comparable(s) and had to cross over to another school district. My subject's school district is rated "A" and the one the comparable in is rated "B" by the State. How do you determine the value (if any) that you adjust for? and what is the formula (if applicable) you use?
Thanks in advance.

 

[Kitarkus]

I have had to go out a ways to find similar comparable(s) and had to cross over to another school district. My subject's school district is rated "A" and the one the comparable in is rated "B" by the State. How do you determine the value (if any) that you adjust for? and what is the formula (if applicable) you use?
Thanks in advance.

If the school district is estimated to be among primary value influencing factors then I would ensure the use of comparable sales which share this value influencing feature (properties in the same school district).

In my market area it would be very difficult to credibly parse-out and quantify the influence of one school district vs a differing district. I s'pose that you could attempt some type of matched pair analysis, however, I suspect that you will be unable to genuinely segregate the 'school district' from the many additional differences which are bound to exist between properties. This type of potential value influence is typically a non-issue when using comparable sales from 'within the Subject's bounded market area'. Your question suggests that you would like to appraise an apple while using an orange as a comparable sale.....and you want to know how much more/less the orange is worth within a given marketplace.

There certainly isn't some magic 'formula' which could universally be conveyed between Appraisers.

 

[glenn walker]

I have had to go out a ways to find similar comparable(s) and had to cross over to another school district. My subject's school district is rated "A" and the one the comparable in is rated "B" by the State. How do you determine the value (if any) that you adjust for? and what is the formula (if applicable) you use?
Thanks in advance

In my area sales prices are higher in better school districts and when I cross the lines I can see it.
If you have no sales in your Subjects School District then you have to ask yourself are you suing similar comparables. Often Homes in a close proximity to another district are allowed to send kids to the better
one. I would talk to local Realtors as its often a marketing issue and low price. There is no magic formula and I am lucky the differences are often as much as $100K or more just by crossing a districts lines. If you cant prove it by sales them maybe there is no big difference.

 

[oldguard]

If the school district is estimated to be among primary value influencing factors then I would ensure the use of comparable sales which share this value influencing feature (properties in the same school district).

In my market area it would be very difficult to credibly parse-out and quantify the influence of one school district vs a differing district. I s'pose that you could attempt some type of matched pair analysis, however, I suspect that you will be unable to genuinely segregate the 'school district' from the many additional differences which are bound to exist between properties. This type of potential value influence is typically a non-issue when using comparable sales from 'within the Subject's bounded market area'. Your question suggests that you would like to appraise an apple while using an orange as a comparable sale.....and you want to know how much more/less the orange is worth within a given marketplace.

There certainly isn't some magic 'formula' which could universally be conveyed between Appraisers.

The home is on the coast (not on the water but you can see the bay), and it's raised up (new build (2022) of 2,470 s/f) so I am limited in finding other similar comparables to homes raised up (on pylons probably 12+ ft high), so it's not your standard SFR. So, in order to bracket GLA (forget about lot size as it's on 2 acres), I have to go out around the very large bay looking for similar looking homes and I have to cross into different school districts and wondered if I had to do that, would I have to make an adjustment IF the rating was different.

 

[glenn walker]

The home is on the coast (notI would not make any school adjustment on the water but you can see the bay), and it's raised up (new build (2022) of 2,470 s/f) so I am limited in finding other similar comparables to homes raised up (on pylons probably 12+ ft high), so it's not your standard SFR. So, in order to bracket GLA (forget about lot size as it's on 2 acres), I have to go out around the very large bay looking for similar looking homes and I have to cross into different school districts and wondered if I had to do that, would I have to make an adjustment IF the rating was different.

The districts are all baked into the cake so I would not try to make adjustments. Also many people do not even have kids in school and many in upper incomes and prices send theirs to private schools anyway.

 

[Terrel L. Shields]

Only the worst performing schools would illicit an adjustment here. Further, in places like Little Rock, where bussing was required, you cannot guarantee you child would go to a particular school, that is dictated by the courts. You can have 5 houses on a street and each one bussed to a different location.

 

[KHS445]

Does Texas have school of choice? There would also be homeschooling, charter schools, private schools and probably several other options.

 

[sputnam]

Why would you? Typically, the appraiser will utilize sales from within the same neighborhood/school district. If it were necessary to apply a location adjustment, it is extracted from the market using one or more of several methods of analysis. The particular methods used would depend on the nature, quality, and quantity of market data available.

 

[ucbruin]

Only the worst performing schools would illicit an adjustment here. Further, in places like Little Rock, where bussing was required, you cannot guarantee you child would go to a particular school, that is dictated by the courts. You can have 5 houses on a street and each one bussed to a different location.

My high school years 69, 70, 71....
Susan Miller Dorsey HS....
Not consider one of the tougher inner city HS....
I doubt there was much of a difference between the different inner city HS Dorsey, Crenshaw, Manual Arts, Locke, Jordan, Inglewood, Jefferson, LA (LA HS building is the building used in the sitcom Room 222) to be able to determine a credible adjustment....

 

[J Grant]

I have had to go out a ways to find similar comparable(s) and had to cross over to another school district. My subject's school district is rated "A" and the one the comparable in is rated "B" by the State. How do you determine the value (if any) that you adjust for? and what is the formula (if applicable) you use?
Thanks in advance.

There is no formula. We are supposed to MV according to prices paid in the market, not some formula, or assumption we make about school districts being reflected in the price.

If the houses in school district A show a pattern for selling for X% more than similar houses in school district B, then that provides the reason for making an adjustment. If the prices between the two districts are similar, then the market is not showing a price reaction, and that is the support for not making an adjustment.