Not confident in view adjustment

[J Grant]

These kinds of situations are a tough call - it would be ideal for an additional comp to support the adjustment, but if the appraiser feels confident that others might pay the same premium, then that certainly supports the decision. How long was the subject listed for, did its older prior sale or prior sales command a similar premium at the time?

 

[chad hampton]

Lakefront homes in my market are so valuable, I rarely ever select a non-lakefront home as a comp. Different buyer pool. And if I have do, the lot/view adjustment can be much more than 25%.

 

[Zoe]

Water view properties have historically increased in value more than any real property. You get into some areas in Tennessee like Pickwick Lake and Kentucky Lake and even the Mississippi River and Tennessee River. Sitting on a high cliff that overlooks water and everything and you are going to pay premium for the site alone.

The site alone could be worth way more than the house.

 

[Zoe]

I agree with the poster that said talk to agents. Ask the buyer too how much the view was worth to them vs competing properties. You could ask the seller too. The seller, buyer and agents are market participants.

 

[chad hampton]

A lot of good advice here. Bottom line is this is where experience matters and understanding your local market and the motivations of buyers and sellers. And good for you and questioning the data. It will lead you in the wrong direction just as much as it might help you in the right direction.

 

[Tom D]

At the N.J. shore, which i only do big urban city, the value goes down each city block you have to walk thru to get to that beach.

 

[Zoe]

At the N.J. shore, which i only do big urban city, the value goes down each city block you have to walk thru to get to that beach.

I can only imagine on the the Northeast coast. Get your checkbook out.

Realtor would say we can show you the subject but we need to know a little about you. LOL

 

[Zoe]

Another factor I always consider. Is seller's agent (if they have one) the same as buyer's agent (if they have one).

 

[juck224]

A lot of good advice here. Bottom line is this is where experience matters and understanding your local market and the motivations of buyers and sellers. And good for you and questioning the data. It will lead you in the wrong direction just as much as it might help you in the right direction.

Responding this this, but I really appreciated all the advice I received in this thread. Unfortunately this is a private sale so marketing time and so forth was unavailable. The sale was word of mouth, as many of these properties are in this area. Additionally, no recent sales of the subject within the last 25 years to help for comparison, along with no sales over the past 10 years for any of the adjacent properties with the same exact site/view influence. However, I was able to get some additional support from the agent for the comparable I employed to bracket the view adjustment. She actually explained she was one of many agents who performed a CMA for my subject property (she knew the property I was talking about right away without me mentioning the address, as she said this was a unique one as well), and she said that for the comparable sale, the topography that allowed for the view was certainly a large factor and considered it very similar to my subject as far as the site/view. Again, whether this is site versus view is hard, because I have comparables with adjacency to the lake in the same association but lack the views, so I still lean on the view the heaviest in this case. This is at least additional support for the limited data I have. Nonetheless, I am still going to spend a bit more time digging up any extra data or surveying additional agents in the area. Thanks all for your help.

 

[J Grant]

Responding this this, but I really appreciated all the advice I received in this thread. Unfortunately this is a private sale so marketing time and so forth was unavailable. The sale was word of mouth, as many of these properties are in this area. Additionally, no recent sales of the subject within the last 25 years to help for comparison, along with no sales over the past 10 years for any of the adjacent properties with the same exact site/view influence. However, I was able to get some additional support from the agent for the comparable I employed to bracket the view adjustment. She actually explained she was one of many agents who performed a CMA for my subject property (she knew the property I was talking about right away without me mentioning the address, as she said this was a unique one as well), and she said that for the comparable sale, the topography that allowed for the view was certainly a large factor and considered it very similar to my subject as far as the site/view. Again, whether this is site versus view is hard, because I have comparables with adjacency to the lake in the same association but lack the views, so I still lean on the view the heaviest in this case. This is at least additional support for the limited data I have. Nonetheless, I am still going to spend a bit more time digging up any extra data or surveying additional agents in the area. Thanks all for your help.

One thing I can suggest that may or may not help-
in My MLS or on public records, I can overhead map search ...like a drone... literally click on each plat # along a view path to see if any sold,

On my MLS (many functions are the same ), I can search by location, creating a blue rectangle in an area such as right along a shoreline. This can bring up sales that other searches fail to find - it is a very targeted search for physical location. I might not add sf or other parameters to bring up as many sales as possible