Location: "Neutral" or Adverse" in the SCA and CA

[ZZGAMAZZ]

Is External Obsolesensce [sp] absolute or relative?

The subject is an avg condition SFR in a small, 200-property residential subdivision surrounded by freeways/warehouses/industrial improvements.

All of the comps will be selected from the same subdivision.

Q: Is the SCA "Location" identifier for both subject and comps "Neutral" or "Adverse" (because comps can't be termed "similar" as far as I am amare).

Q: Does the subject suffer from External obsolesence in the CA although the factor affects the entire neighborhood?

Thanks.

 

[The Bob]

Chances are it's relative based on the location in the sub. i.e. Does it back up to non-residential?; are interior lots well screened from the non-residential?

 

[DWiley]

Is External Obsolesensce [sp] absolute or relative?

The subject is an avg condition SFR in a small, 200-property residential subdivision surrounded by freeways/warehouses/industrial improvements.

All of the comps will be selected from the same subdivision.

Q: Is the SCA "Location" identifier for both subject and comps "Neutral" or "Adverse" (because comps can't be termed "similar" as far as I am amare).

Q: Does the subject suffer from External obsolesence in the CA although the factor affects the entire neighborhood?

Thanks.

Flip the situation around 180 degrees and ask how you would treat it - consider an oceanfront highrise. Would you rate the beachfront location as NEUTRAL because every unit in the building is beachfront? Or would they all be BENEFICIAL?

 

[Elliott]

Your probably neutral and don't say any of the following:

Examples of racial and ethnic references we found in appraisals include:

• The percentages of racial and ethnic makeup of the area.
  • e.g., "The racial makeup of the city was 86.28% white, 12.46% Black or African-American, 0.52% Native American, 0.22% Asian, and 0.52% from two or more races. 0.56% of the population were Hispanic or Latino of any race."
• Foreign birthplaces of residents noted as part of the neighborhood descriptions.
  • e.g., "The county was 94.85% white, 0.19% Black or African-American, 0.83% Native American, 0.74% Asian, 0.07% Pacific Islander, 1.36% from other races, and 1.96% from two or more races. 3.73% of the population were Hispanic or Latino of any race. 19.4% were of German, 13.2% English, 11.4% Irish and 9.1% American ancestry."
• The languages spoken in an area.
  • e.g., "The most common language spoken is English. Other important languages spoken here include Italian and Spanish."
• Amenities specifically geared to a race, ethnic, or religious group.
  • e.g., a "commercial strip featuring storefronts supplying Jewish Households."
• Rising house prices were because of gentrification.
• A town was described as having a "Black race population above state average."
• Noting that "Koreatown is considered 'highly diverse' ethnically," listing the percentages of residents from various races and nationalities and describing that the number of foreign-born persons was “considered high compared to the city as a whole."
• The ethnic groups that have immigrated to a neighborhood over the course of many years and noted it was "one spicy neighborhood."
• A reference to a neighborhood being originally "White-Only," before becoming a "White-Flight Red-Zone" to explain why the neighborhood is mostly "Working-Class Black" now.
• A neighborhood described as "predominately Hispanic" and that the residents have "assimilated their culture heritage" into the neighborhood.
• A neighborhood populated by African Americans characterized as leaving an "overcrowded" area for "greater housing opportunity" in the neighborhood.
• Noting that "there is more Asian influence of late" buying the market.
• Noting the area's first Asian mayor.
• Noting an area's "decline in population, which transitioned from being predominately Eastern European to having a substantial amount of Black and Hispanic people."
• Describing that the subject property was in a "racially integrated neighborhood" but "the community has no large institutional anchor" comparable to other racially integrated neighborhoods noted in the city.
• An area that was "originally founded as a whites-only city or sundown town" but had become "fairly diverse" with a "diverse school system."
• An area that was "'not especially-diverse' ethnically, with a high percentage of white people."
• A property being in a “homogenous neighborhood with good schools."

 

[DWiley]

Q: Does the subject suffer from External obsolesence in the CA although the factor affects the entire neighborhood?

Whether or not there is EO would be based on the presence of an ext depreciation effect, not on how many homes in the neighborhood also had the same effect.

 

[Dublin ohio]

Is External Obsolesensce [sp] absolute or relative?

The subject is an avg condition SFR in a small, 200-property residential subdivision surrounded by freeways/warehouses/industrial improvements.

All of the comps will be selected from the same subdivision.

Q: Is the SCA "Location" identifier for both subject and comps "Neutral" or "Adverse" (because comps can't be termed "similar" as far as I am amare).

Q: Does the subject suffer from External obsolesence in the CA although the factor affects the entire neighborhood?

Thanks.

So are you saying that the land uses surrounding the neighborhood are the external obsolescence?

 

[Terrel L. Shields]

Does the subject suffer from External obsolesence in the CA although the factor affects the entire neighborhood?

If the sales indicate a certain value and you have a good handle on the land value, then by using the cost and making an appropriate, perhaps straight line depreciation, then the difference, if any, suggests that EX OB or Functional Ob is present. Or simply deal with the accrued depreciation which is all USPAP requires you do and the best way is to extract depreciation from the other sales in the area using the Epley technique. And yes it is a negative influence likely.

 

[ZZGAMAZZ]

Chances are it's relative based on the location in the sub. i.e. Does it back up to non-residential?; are interior lots well screened from the non-residential?

Yours is the only factor that I can think, and I appreciate your perspective; however, unfortunately for me, I'm unwilling to devote the time to analyze the potential variance that IMO would be "nice" but not significant because of the sparse data that is available because of the sparse population.

 

[Dublin ohio]

My question is. What is creating the "external obsolescence" that impacts a neighborhood with 200 homes. Smell or noise from industrial and commercial operations? What is causing a tangible impact?

 

[ZZGAMAZZ]

So are you saying that the land uses surrounding the neighborhood are the external obsolescence?

yes.