Joint Driveway

[Stone]

I'm appraising a house with a joint driveway. In the city that I do most of my residential appraisals, there aren't that many of these. I'm wondering how other appraisers deal with this.

The driveway is actually on the property that I am appraising, but the adjacent residence has an easement that allows for the joint use of this driveway. This is recorded, but there does not appear to be any recording of how responsibilities are divided. The subject lot is small, but it would have the same driveway with or without the easement, so I am not sure if this warrants some sort of adjustment. I only have one comparable sale with a joint driveway, so it is hard to see how this works in the market area.

Any ideas would be welcome. I deal with easements in rural properties on a fairly regular basis, but not on urban properties.

Thanks

 

[Ray Ohler]

Michael, in Philadelphia it is somewhat "uncommon" not to have a driveway shared by about 50 houses. It USUALLY is recited in the deeds that the abutting properties all have to contribute to the maintenance, etc. Yeah, right. Just TRY to get it. :? As a result, there are a lot of common driveways that look like the surface of the moon. Doesn't appear to have any measureable impact on marketability and/or value. You didn't mention who you were doing the appraisal for; a lender or whatever. In theory it really doesn't matter. However, in reality, depending on how "sensitive" your client is (in the case of a lender), you should address the apparent easement along with a statement as to the driveway's present condition. Not necessarily making an adjustment. If you don't have any market data to "support" an adjustment, you shouldn't make one. Then again, if you REALLY want to throw somebody a curve, and get them PO'd, figure out the maintenance and/or replacement cost on a monthly or yearly basis, times the "average" term of homeownership and capitalize (discount) it to.. :lol: (just kidding). I, depending on a lot of other factors, may make a statement such as "Apparent common driveway easement does not appear to have any material impact on subject property's marketability". If nothing can be located IN WRITING about maintenance, you MIGHT add, "Appraiser SUGGESTS that formal written agreement is obtained regarding the maintenance and/or replacement of the common driveway". Like I said, depending on who you are doing the appraisal for, if you write that, get ready to hear it. Just an opinion.

 

[jtrotta]

We don't have many shared driveways, but the ones that exist are closer to the water and definitely need maintenence and its useually shared expenseas noted in the deed. If no such agreement exists, chances of you getting one is very limited.

Good Luck :!:

 

[Stone]

Thanks for the advice. I was pretty sure that the driveway easement wouldn't require an adjustment, but I wasn't sure. This is for a lender, so I will definitely discuss the condition of the driveway. I don't see much chance of getting an agreement in writing, so I won't push that.

 

[MarkRichmond]

Hi Michael,

The neighborhood I live in on the near west side of Madison has a bunch of shared driveways and for the most part they have little/no effect on value. I don't typically adjust for them.

Cheers,

Mark

P.S. Nice Blizzard we are experiencing! I have shoveled 3 times today and it looks like I have not touched the shovel.

 

[Larry Lyke]

All you realaly have to do is indicate in the appraisal that there appears to be a shared driveway with _____ (give address of neighbor).

Condition of the driveway can be noted in its proper location on the report and below, if more space is needed.

The UW will obtain a copy of an easement either because it appears on the titlework or because she queries the Borrower/Seller, or maybe even the neighbor.

If there's no easement and/or written agreement that can be recorded the UW can initiate such -- or whatever makes the thing work.