Obligation To Take Future Offsite Conditions Into Account

[Mr Rex]

Replace the mountains with trees and the condo with guys with logging equipment.

 

[Mike Garrett RAA]

Speculative at best; however, should be disclosed if known about. Will it really obscure the view? Is the project firm?

 

[Elliott]

The original appraiser should have taken into consideration that the view could be blocked. I was told when I was just starting to appraise, by a builder, the only way to make sure your view isn't blocked is to buy the oceanfront site. I imagine other buyers in the area also realized their view could be blocked since they didn't own the property across the street.

 

[Mark K]

The original appraiser should have taken into consideration that the view could be blocked.

Should appraisers include an assumption or EA in the appraisal report for any home with a view amenity (the old 'Million Dollar View') that the value is based on the view remaining unobstructed?

Trees grow, things get built, stuff happens.

 

[Howard Klahr]

Should appraisers include an assumption or EA in the appraisal report for any home with a view amenity (the old 'Million Dollar View') that the value is based on the view remaining unobstructed?

What allowable development is permitted between the subject and the view amenity as of the date of value? Private property owners have the right to develop? Height limits of development are known through zoning and building codes. Look at communities where views are common commodities. There are things known as view and light easements, view corridors, in addition to height limits that government uses to regulate such things.

This is why a majority of development in Washington DC is height restricted in order to maintain views. In certain high-rise buildings, more often commercial than residential, but signage and banners can be placed to obstruct views that may not have been contemplated at the time but appear over time.

Does Fenway Park or Wrigley Field have the right to construct stands in the outfield that obstruct the view from the buildings across the street?

the only way to make sure your view isn't blocked is to buy the oceanfront site.

In addition, regulation do change. For example, the coastal development boundary may be located in one place when a project is developed and moved to another location years down the road.

In terms of what is the appraiser's responsibility, report what is known at the time. More than likely this is not the only property so affected by the condo development. Were any of these properties used as comparables in the original analysis? if so, the market effect would be considered to already be factored in?

Need more details to address the question by the OP

 

[bodenstein]

Thank you all for your thoughts on this. I'm running hard today and just had the opportunity to scan this until I can digest more fully later, but the common thread seems to be if the appraiser knew about the impending project it should certainly have at least been reported. It also seems that if he didn't know there may well be an issue of competency. Thanks again!

 

[bodenstein]

BTW my initial reaction was the same as Mark K's - what mountains in Jersey? To the best of my knowledge there are no actual mountains in NJ by the usual definition of having a timberline above which trees don't grow. But I think the law firm operates on at least a regional basis.

 

[Meandering]

There are mountains in NJ.

They are not the rocky mountains of the west, and they don't extend above the tree line, but yes, there are mountains in New Jersey. The Appalachian Trail runs through western NJ in the Kittatiny Mountains.

 

[J Grant]

If it was done on a URAR form, might want to look at cert 14 on the certs page

 

[Meandering]

Cert 15.

What was knowable?

This is PA law, but NJ is not that far different.

House Bill 1071 (Act 31 of 2015): House Bill 1071 amends the Development Permit Extension Act to clarify outstanding issues regarding the extension of certain building and construction permits. Specifically, House Bill 1071 states that all permits granted between December 31, 2008 and July 2, 2013 are "tolled" until July 2, 2016. Further, House Bill 1071 spells out the original intent of the Act to include the right to convert or withdraw real estate in the approvals that are suspended by the Act. As a result of the economic downturn in recent years, builders and contractors may have been unable to secure funding for permitted jobs prior to the expiration of their permits. This legislation prevents members of our industry from having to go through the needless and unnecessary step of applying for and awaiting new permits for projects that have previously been permitted.

When the legislature recognizes that builders have not been able to secure funding for permitted jobs, there is a problem with an appraiser determining if a permit was pulled, will something be built. It's not a "one-off" when the legislator undertakes a new rule to accommodate the issue.

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