Location adjustment

[Fernando]

Do you come upon a property and there should be an adjustment for location but it's difficult to quantify?
Once in a while I come upon a property, and I just love the location but I can't really know how to quantify the adjustment.
I just have to reconcile it in Fernando's mind and give it more or less weight in determining appraised value.

 

[Mike Ault]

Do you come upon a property and there should be an adjustment for location but it's difficult to quantify?
Once in a while I come upon a property, and I just love the location but I can't really know how to quantify the adjustment.
I just have to reconcile it in Fernando's mind and give it more or less weight in determining appraised value.

What does "difficult to quantify" mean to you? What lengths have you gone to? If you have exhausted all reasonable options that your peers would go through in similar circumstances then you should be able to talk about that process in the report which may provide some support for your weighting determination. Location adjustments are some of the easiest to support however if it's "superior" in your mind simply due to the fact that it's an area with more Tesla's in the driveways, then YMMV.

 

[Fernando]

For some reason, some people like to live near a school. Yet, usually across from school is less desirable. If located around the corner and somewhat secluded, I find it an excellent location.
Further blocks away and is like any other comps.

 

[Mike Ault]

For some reason, some people like to live near a school. Yet, usually across from school is less desirable. If located around the corner and somewhat secluded, I find it an excellent location.
Further blocks away and is like any other comps.

There we go! I have drawn similar conclusions from my market and attribute it to "view", not location. I'm not saying location is wrong mind you, I'm just saying that's the way I prefer do it. Everything on the grid might be located in the same neighborhood or gated community but there are different "views" within that neighborhood which are quantifiable by analyzing long-term sales statistics. As far as schools go, I have found negative traffic influences are the major driver and they are strongest across the street from the parking lots and diminish with proximity. Being next to the playgrounds is a selling point in some neighborhoods.

 

[Dublin ohio]

Being next to the playgrounds is a selling point in some neighborhoods.

But being next to the high school athletic field is somewhat less desirable. Football games at night, track and field during the early evening, daily practices and let's not forget marching band practice. I can hear that and the high school is 1.25 miles away as the crow flies.

 

[Dublin ohio]

For some reason, some people like to live near a school

Have you ever asked any of them why? I have. Most common response. It's easier for the kids to get to school. Especially if within walking distance and like Mike said. Being close to the playground is a plus. Especially if it is open when school is not in session.

 

[Terrel L. Shields]

et, usually across from school is less desirable. If located around the corner and somewhat secluded, I find it an excellent location.

There we go! I have drawn similar conclusions from my market and attribute it to "view", not location.

Would it not be an attribute of the location which is reflected in the value of the site? To me the land value is a fixture of the site...it can change but does not depreciate. Therefore, if vacant, its value reflects its location and view therefore, is incorporated into the land value. That means I never (with rarest exception) adjusted for "Location" and I have never adjusted for "View". To me they are incorporated into the land value.

 

[Mike Ault]

Would it not be an attribute of the location which is reflected in the value of the site? To me the land value is a fixture of the site...it can change but does not depreciate. Therefore, if vacant, its value reflects its location and view therefore, is incorporated into the land value. That means I never (with rarest exception) adjusted for "Location" and I have never adjusted for "View". To me they are incorporated into the land value.

Most residential appraisers don't follow the proper "sequence of adjustments" and the GSE's separated the two attributes on our primary form. The users of residential appraisals can easily understand how one neighborhood could have a predominantly higher value than the other one and why one view is demonstrably superior/inferior to the other. If you just plug some arcane figure in for "location" derived from "site value analysis" it would require the reader to refer to some other page to figure out how you came up with that figure. If, on the other hand you told them that a comparable dwelling in one neighborhood sells for 10% more than the other neighborhood in the subject market segment then it's concise, accurate & easily understood. If you tell the reader that your subjects superior "canyon view" typically adds 10% to value in that market segment versus its next-door neighbor with the "prairie view" then its concise, accurate and easily understood. In nondisclosure states land purchases are generally closely held secrets and details are not disclosed to third parties, we would be doing our client a disservice if we based our adjustments & valuations on factors that are not verifiable or accurately quantifiable.

 

[Dublin ohio]

Most residential appraisers don't follow the proper "sequence of adjustments"

I think most residential appraisers understand that location and view are a function of the site. There is a golf course community in my area. Where you don't have a clear view of the golf course unless you have a site on the course. The only other possible golf course "view" is looking between the houses that have golf course lots. So I do not make a view adjustment if I am making a location adjustment for not being on the golf course. The view does not exist without the location. But what is the "proper sequence"

 

[Fernando]

I think most residential appraisers understand that location and view are a function of the site. There is a golf course community in my area. Where you don't have a clear view of the golf course unless you have a site on the course. The only other possible golf course "view" is looking between the houses that have golf course lots. So I do not make a view adjustment if I am making a location adjustment for not being on the golf course. The view does not exist without the location. But what is the "proper sequence"

Golf course views appear to have positive affect but negative effect when golf balls break their windows.
Buyers like the golf views but later find out the negativity.
Back to my school location, being right in front of school or near path of car traffic (need to know where they come and go during pick up time) is less desirable to me even though buyers initially not aware of the negativity until moving in. When I see the location as very close but not having the negativity, it's difficult to adjust for location.