Not confident in view adjustment

[Surf Cat]

Still around, done probably 20 reports since I completed that one I forgot about it. No revisions or anything else from the lender. First assignment for them. I have gotten about 5 assignments since. Not sure if that means anything ? All good points, I did the very best I could with the data I had and typed extremely detailed commentary on all my findings. I am not perfect, I just do my best to write a credible report.

So, did you do a 25% View adjustment? Or did you attribute some of the difference/value to its location being adjacent to the beach area?

 

[juck224]

So, did you do a 25% View adjustment? Or did you attribute some of the difference/value to its location being adjacent to the beach area?

Some to beach area found 1 more similar ish sale 3 years old at a different lake. Then adjusted for market area difference and time adjustment. This other one didn’t have the view so I had one to support view one to support location.

 

[Surf Cat]

Some to beach area found 1 more similar ish sale 3 years old at a different lake. Then adjusted for market area difference and time adjustment. This other one didn’t have the view so I had one to support view one to support location.

Smart move IMO.

I appraise in areas where there's some epic ocean/coastal/jetliner views....I've "never" made a 25% adjustment LOL. I believe that would have been looked at sideways by an underwriter.

Fun thread, thanks for following through! I hate the threads where everyone gives an opinion then we get ghosted and don't know what happened.

 

[juck224]

Smart move IMO.

I appraise in areas where there's some epic ocean/coastal/jetliner views....I've "never" made a 25% adjustment LOL. I believe that would have been looked at sideways by an underwriter.

Fun thread, thanks for following through! I hate the threads where everyone gives an opinion then we get ghosted and don't know what happened.

Yep I agree, in this case 25% sounds extreme, though this is a smaller Midwest market so a 25% adjustment would be about $50,000. Maybe less extreme when put in that context.

 

[RCA]

Hello all, I am working on a complex assignment, particularly due to the view of this property. This property is located in an association on the most desirable lake in this county. The property itself and the area are not unique or challening; I have completed many in this area both waterfront and non-waterfront. What makes this report complex and having me second guess myself a bit is the view adjustment. This property is located at a certain portion of the lake that abuts a small beach area and provides direct, unobstructed and expansive water views without having waterfrontage itself. This view appears to have been a larger driver in the list price and contract price, and I dug up data and looked at 100s of comps to find a reasonable view adjustment. After finding 6 comparable sales within 0.25 miles and in the same association, I found exactly 1 similar non-waterfront home with the same expansive unobstructed water view. However, after employing sensitivity analysis and bracketing this adjustment, it came out way larger than expected and with the adjustment applied the value actually reaches the contract price. I suppose I am struggling because the adjustment is so large (25% of the final opinion of value) that it seems unreasonable in my head. I never have been and never will be that appraiser that just hits a contract price, but in this case seeing it made me dig so deep for data that I ended up supporting it; and although I seem to have good comparables and good support, this large adjustment, along with the high line, net, and gross adjustments across the board on the comparables has me very nervous about hitting send on this assignment. I suppose I am just asking for any advice or if anyone else has felt this way and what they have done about it? Thanks all

You have to be cautious. Owners who are wealthier than any of the existing owners ever were or ever will be, may one day decide to leave and put their property up for sale, only to discover there is no one around able or willing to fork over the same amount they paid. Not by a long shot. The property might sell for 20-40% less than what it would if there were financially equivalent potential buyers. I have seen this more than once. So in your Sales Grid you make an entry: "Overbuilt for Market Area" or something similar. So for you another question to ask is: Is there good evidence in the Market Area of potential buyers able and willing to pay the proposed MV for residential property.

 

[glenn walker]

Still around, done probably 20 reports since I completed that one I forgot about it. No revisions or anything else from the lender. First assignment for them. I have gotten about 5 assignments since. Not sure if that means anything ? All good points, I did the very best I could with the data I had and typed extremely detailed commentary on all my findings. I am not perfect, I just do my best to write a credible report.

Thanks for responding and letting us know honestly I've never been that lucky but I've also never made a 25% location view especially with no real comparables. Kudos and thanks again.

 

[gregb]

Part of a 180 degree view-