Neighborhood Analysis

[debbiemaekershaw]

Thank you Paula and Leeann, your comments were insightful and much to my own thinking and your responses are appreciated.

 

[Ramon Tate]

The appraisal form we use here that requests "neighborhood" percentages has generated argument for years because the majority of our appraisals are in small towns and rural areas. In my opinion, declaring a percentage is meaningless because there is no standardized framework for its computation. And if you do go through the laborious process of performing a genuine analysis to generate such a number, what good is it? What does it contribute to your analysis? Your defined "neighborhood" and computative methodology can be different from another appraisers. If there's no standard what contribution can such work have to the valuation process? In my opinion, NOTHING! As a substitue for supplying a number, I started including an aerial photo of the subject neighborhood with the various types of uses shaded in or generally identified by pointers. I've received comment that the aerial is infinitely more informative and helpful than a non-descript percentage. Personally, I think identifying "percentages" for a neighborhood should be done away with because it's a waste of perfectly good ink.

 

[Ross (CO)]

Right on, Ramon. Now, if we can just get our client to accept our possible designation for a subject property as being "Rural", when we feel that such IS an appropriate calling, then our life might be easier all the more.

By the next census interval and population density statistics that come through all those formerly "rural" areas might likely be "suburban"....and all their worrying will have been unnecessary. As this country has grown over 225 years all that was nowhere's-ville became "rural", and rural became suburban, and suburban became urban....and what's the fuss all about ?.......The house and property are what they are, and how nice and appealing IS that, and would somebody else possibly want to also buy that property in the future ? .....based on what we see there today. Yes, possibly, unless to-he**-and-a-handbasket happens in the meantime.

FWIW, the new Fannie URAR form still has that same Land Use % field again. So much for progress.