Land adjustments

[PropertyEconomics]

here is what i got...

-subject has 0.86 acre lot, land value 225K (very desirable location, river view etc)
-comp 1 has 1.12 acres lot, land value 150K (further away from the river) - adj +75K
-comp 2 has 3.82 acre lot, land value 150K - adj +75K
-comp 3 has 5.45 acre lot, land value 100K (middle of nowhere, no views of
anything) - adj +125K
-comp 4 has 8.81 acres lot, land value 600K (same view as the subject) - adj -375K

I think use of this system, even though resulting in quite large adjustments, will work much better than trying to justify different value adjustments on a per acre basis. If you can explain how you determined land value for your subject and each of your sales, this method is clean and should be the easiest to understand.
Good luck.

 

[Bamba]

I think the easiest way to justify land value for subject and each of the comps will be to analyze comp land sales very close to each location...as close to each one of them as possible...and as recent as possible...

 

[TJSum]

Maryland has a lot of water front properties. Usually, these two adjustments are NOT combined (view and actual lot size). They are separate issues.

Just to throw another aspect into it, are any of the properties water front as well as water view? Water front usually has much larger values than just water view (depending on water rights). Water view's can vary greatly from property to property so the value for this view can be all over the place.

If not enough current market data is available, you will have to go back further in time to try to determine how much value the subject's view actually has. Then, usually the water front / water view / residential with no water view adjustments are made either in the view or location sections. Then, the lot size differences are adjusted separate in that section of the grid.

No two water views are alike, so many times it is better to go back in time, then to seek out other locations along the water if you have adequate data to support proper time adjustments.

 

[PropertyEconomics]

Maryland has a lot of water front properties. Usually, these two adjustments are NOT combined (view and actual lot size). They are separate issues.

Just to throw another aspect into it, are any of the properties water front as well as water view? Water front usually has much larger values than just water view (depending on water rights). Water view's can vary greatly from property to property so the value for this view can be all over the place.

If not enough current market data is available, you will have to go back further in time to try to determine how much value the subject's view actually has. Then, usually the water front / water view / residential with no water view adjustments are made either in the view or location sections. Then, the lot size differences are adjusted separate in that section of the grid.

No two water views are alike, so many times it is better to go back in time, then to seek out other locations along the water if you have adequate data to support proper time adjustments.

TJ .. I agree with you 100%. THe problem is the poster said they didnt have any such sales. Sometimes you gotta do what you gotta do with what you have.

 

[Bamba]

I have two outdated sales in the subject's close proximity with similar views...one from 12/2005 and the other from 2/2005...I was thinking of using the one from December as comp 4...

Subject is water view not water front, located on a hill overlooking Susquehanna River.

 

[TJSum]

Do you have enough data to do a Market Study comparing 2005 with now? Many areas of PA have held relatively stable compared with other areas of the country (no vast run up and therefore no hard crash), but just guessing, not sure what area you are in ( I was raised in the York area).

You could also compare those two 2005 sales with other sales from 2005 (similar to your current comps) to see what value differences there were.

If any agents specialize in that area, you could ask them for some feedback as well.

These assigments take a lot more time to complete.:new_smile-l:

 

[Lobo Fan]

As I recall from my Realtor days in California, there was a big difference between a "white water" view and a "blue water" view. A white water view was close enough to the beach to be able to see the breakers. A blue water view was usually over the top of other structures or obstructions.

I remember one house that advertised a "white water" view. The problem was you had to stand on the toilet and peek out of a tiny window to see it. Here, it is mountain views. Though one can see the mountains from almost anywhere in Albuquerque.

 

[sammiboii]

Bamba,

I agree with TJSUM. I would personally make 2 different adjustments, one for view and one for size. Maybe go back further than 2005 and find sales with similar view and size as the subject. In other words, what were the adjustments then? Try to determine what the view adjustment should be. I assume that your site adjustment can be estimated fairly easily. Try to think of it as if you did the appraisal back then. Then if your market has appreciated a certain percentage from that point until now, maybe you can apply that percentage to the warranted adjustment. I would also use land extraction, and land allocation methods just to get more figures in front of me. I don't know about you, but if I see all those numbers when I'm dealing with difficult appraisals, sometimes they will shed more light on your appraisal. Contact some of the local realtors that know the area well and combine all those numbers to see if they make sense. Also (and I don't know if you have this in your area), here in North Carolina we can call the appraisal board with our appraisal questions and speak directly with the investigators. They are ex-appraisers that have turned to investigating other appraisers work when they receive complaints. They appear very knowledgeable and have always answered my difficult questions. Also, research, research, research. Make sure you've turned over all nooks and crannies and didn't miss anything. I'd personally drive the neighborhoods that have the river view and see if there are any FSBO's. That may shed some light on your dilemma.

I wish you luck and hope I've helped.
Sam

 

[PropertyEconomics]

Bamba,

I agree with TJSUM. I would personally make 2 different adjustments, one for view and one for size. Maybe go back further than 2005 and find sales with similar view and size as the subject. In other words, what were the adjustments then? Try to determine what the view adjustment should be. I assume that your site adjustment can be estimated fairly easily. Try to think of it as if you did the appraisal back then. Then if your market has appreciated a certain percentage from that point until now, maybe you can apply that percentage to the warranted adjustment. I would also use land extraction, and land allocation methods just to get more figures in front of me. I don't know about you, but if I see all those numbers when I'm dealing with difficult appraisals, sometimes they will shed more light on your appraisal. Contact some of the local realtors that know the area well and combine all those numbers to see if they make sense. Also (and I don't know if you have this in your area), here in North Carolina we can call the appraisal board with our appraisal questions and speak directly with the investigators. They are ex-appraisers that have turned to investigating other appraisers work when they receive complaints. They appear very knowledgeable and have always answered my difficult questions. Also, research, research, research. Make sure you've turned over all nooks and crannies and didn't miss anything. I'd personally drive the neighborhoods that have the river view and see if there are any FSBO's. That may shed some light on your dilemma.

I wish you luck and hope I've helped.
Sam

To all ...
IF the adjustments are measured correctly I dont think it would matter if you split the adjustment or not, as long as it is adequately measured. In a perfect world I would certainly agree that dual adjustments would be necessary and preferred, however, in light of limited market data I doubt youd be overly criticized for doing so. When no market data is available you must do the best you can with what you have. My belief is that is what the OP is doing.
I too wish them well in this assignment.

 

[Bamba]

Many areas of PA have held relatively stable compared with other areas of the country (no vast run up and therefore no hard crash), but just guessing, not sure what area you are in ( I was raised in the York area).

These assigments take a lot more time to complete.:new_smile-l:

I'm in York area as well...property is in Lauxmont Farms, i'm sure you're familiar with that...