Market Value of Horse Property.

[Metamorphic]

...I'm not sure its even possible.

The FNMA definition of market value requires that buyers and sellers be "acting prudently", "knowledgable", "not affected by undue stimulus", "typically motivated", and "well informed or well advised".

As far as I can tell, people that center their lifestyles around horses are batS#it crazy and largely not capable of acting prudently or any of that other stuff.

I'm thinking of taking horse properties off of the list of assignments I'll accept. m2:

 

[J Grant]

lol I am a horse person...

I feel that way about golf fanatics. To me, one golf course looks much like another and it is the most boring thing in the world. Yet I can put myself in their mindset for an appraisal...we have houses here selling for millions more because they are one golf course vs another . Ditto boating fanatics and why they buy certain properties. I do feel there are certain market segments we just don't mesh with and should not accept those appraisals.

PS hate to say it but horse people are a little crazy..most have fallen and hit their head more than once...even with helmets it shakes things up, hard to admit but t's true. I am no exception .

 

[Peter LeQuire]

...I'm not sure its even possible.

The FNMA definition of market value requires that buyers and sellers be "acting prudently", "knowledgable", "not affected by undue stimulus", "typically motivated", and "well informed or well advised".

As far as I can tell, people that center their lifestyles around horses are batS#it crazy and largely not capable of acting prudently or any of that other stuff.

I'm thinking of taking horse properties off of the list of assignments I'll accept. m2:

Doing GSE-related appraisals that are outside the band of "product" that can be hammered into shape to fit through the various criteria (and their inconsistent application) is inherently and increasingly difficult. That said, and obviously, there would be a significant difference between a house on a couple of acres with a stable for one or two hay burners and one on scores of acres with a very large barn with stalls, tack room, grooming area, ring, etc. etc. The owners of both types are equally fixated on their hobby. The former could probably be dragged into GSE compliance, the latter not so much.

Houses with substantial equestrian amenities may not - as a generalization - be GSE product: but, people who have a huge addiction to horses probably have the ability to finance those properties without resorting to Fanny/Freddy loans.

But, like many specialty residential properties (historic properties, large acreage estates, upper end resort or waterfront properties, etc.), there may be a niche for appraising such, and such work probably is more lucrative than the piranha-infested waters of GSE appraisal work.

I'm not a horse person, having reached an understanding with them decades ago - I won't climb on them, they won't throw me off.

 

[Kim Whiting]

It's such a niche market especially when you throw in an indoor riding arena. The market within the market is very, very small. Again brings up the issue of market value. This small market is a world onto itself and certainly isn't representative of the Market as a whole. 90% of the whole market doesn't want and won't pay for a 40,000sf riding arena. What you do with that is whatever the heads of state in here deem is appropriate.

 

[hastalavista]

It's such a niche market especially when you throw in an indoor riding arena. The market within the market is very, very small. Again brings up the issue of market value. This small market is a world onto itself and certainly isn't representative of the Market as a whole. 90% of the whole market doesn't want and won't pay for a 40,000sf riding arena. What you do with that is whatever the heads of state in here deem is appropriate.

Kim:
Certainly the customization of these types of homes (the indoor riding arena, as you point out) limits the potential buyer pool. But, while there is a smaller number of market participants who specifically seek these types of properties out, there are still enough to make a "market" and where there is a market, there is the market value

Now, if the number of buyers who want these types of homes declines (or, the number of homes available exceed the number of buyers willing to pay any premium for these homes), then I would expect the contributory value of the horse amenities to diminish, and possibly at one point, create additional functional impairments to value.
But, in that case, the likely buyer may not be a horse-person (like JGrant) but someone like me; who is going to require a discount to change the horse amenities to something that fits with my lifestyle (in the spirit of upcoming Oktoberfest, how about a beer hall where the indoor arena stands?).

:new_smile-l:

 

[Vermonter]

...I'm not sure its even possible.

The FNMA definition of market value requires that buyers and sellers be "acting prudently", "knowledgable", "not affected by undue stimulus", "typically motivated", and "well informed or well advised".

As far as I can tell, people that center their lifestyles around horses are batS#it crazy and largely not capable of acting prudently or any of that other stuff.

I'm thinking of taking horse properties off of the list of assignments I'll accept. m2:

Tend to agree and try to avoid them myself. That being said, there are comps around here and it's pretty clear that horse lunatics will pay for the amenities.

 

[Metamorphic]

Clearly they'll pay, its just a matter of what they will pay. The one I just finished the GLA improvements had a contributory value of about 10% of the total value. So the other 90% of value are things that extraordinarily subjective.

 

[VegasWayne]

The last one I appraised had stables on the first floor and the living area on the second. batS#it crazy is the correct term.

 

[Metamorphic]

That's so you can live even closer to the flys. I hope you didn't put that in the detrimental conditions section as it is obviously an amenity.

 

[Terrel L. Shields]

As far as I can tell, people that center their lifestyles around horses are batS#it crazy and largely not capable of acting prudently or any of that other stuff.

And I'm probably going to get my hair (what little I have) set on fire, but women horse people are the worst of that lot...

The horse whisperer, Monty Roberts once reported that during his clinics is frequently happened that some women would become so focused on the demonstration that they fainted.

Our family simply used horses as tools as much as entertainment. We checked cattle with them, herded cattle, roped & worked cattle. As a kid we plowed the garden with them...luckily for me but not my older brother, we bought a tractor when I was 7. And dad didn't keep animals as hobbies. They had to pay for themselves, so we raised AQHA quarter horses and sold colts. In the 1960s we got prices that some folks can't even get for a horse today. Outside a very well trained horse, I bet you could get a horse given to you with very little effort in this area. They are an expensive headache.

The homes with a relatively simple barn, even a small indoor arena are nothing compared to what we have on the market here today... "Isuba Valley" (Isuba supposedly means "horse" in the Choctaw language.) Twin Bridges Equestrian...etc. I think the asking price for the three properties within 2 miles of me is over $2,000,000. Dogs on the market....over a year to sell