location adjustments for distressed neighborhood

[George A Easton]

the more i know, the less i know....

have a home in a partially completed neighborhood where the builder just took off, the hoa is broke and essentially nonexistent, half the lots are unbuilt and from what i've learned, those lots are going into foreclosure. well with no relevant sales in the neighborhood, i have a few closeby in established, stable(r) neighborhoods. my one sale in the sub is 500 square feet smaller (1600 vs. 2100) and i have a listing of a smaller one that gives me a bit of insight on the ceiling. So anyway, i feel it's appropriate to make a locational adjustment but with no similar sales in the sub, i'm sort of stuck guessing.

any thoughts on the impact of such a neighborhood? or how i can determine such an adjustment?

thanks in advance

 

[Dennis J. Black ASA IFAS]

Find other distressed subdivisions and determine at what discount (%) they sell to the non-distressed subdivisions.

 

[Jerry Bone Jr]

my one sale in the sub is 500 square feet smaller (1600 vs. 2100) and i have a listing of a smaller one that gives me a bit of insight on the ceiling.

Extraction Method on the sale & listing will provide a two point range in site value.