Obligation To Take Future Offsite Conditions Into Account

[Meandering]

Besides.

This issue lies with the BUYER'S AGENT. who was acting on the buyer's behalf to negotiate the best deal possible for the buyer. The agent has fiduciary responsibility to the buyer. The appraiser has no responsibility to the buyer.

.

 

[J Grant]

The appraiser has responsibility to appraisal standards UPSPAP (don't be misleading), and appraiser has responsibility to their client...it is not just the buyer involved if they over pay for a property , the lender over loans as well and now is over leveraged ( and might result in a short sale later due to loss of value.)

 

[Kitarkus]

An attorney that we work with on occasion asked my associate the following question, and I'd appreciate your thoughts and input:

"I have a potential case where the home purchased had a panoramic view of a mountain. There was a big condo development planned for the space between the house and the mountain that was not yet started at the time the home was purchased. After purchase, the condo building is built, my clients entire view is destroyed, they now stare at the back of the condo complex, house is worth far less.

If the appraiser knew of the coming condo development, should that have been noted in the report and also taken into consideration in that value even though the condo building had not yet been constructed. Or do you only have to report on the existing conditions and existing value?"

Thanks in advance for your thoughts on this.

Jerry Bodenstein

Sorry if this has been covered...I only read your original post...this may have been covered in posts that followed. As part of any Seller's Disclosure....the Seller must inform the prospective Buyer(s) of any/all notices that they have received. Certainly the Seller had received some formal notification from the City or Developer relating to future development within XXXX feet of this property. The Appraiser may/may not have received the disclosure...but certainly should have requested it. Was the pending development disclosed to the Purchaser?...did the Appraiser obtain it? Could the Appraiser have had knowledge about prospective development that could alter the view from the Subject property via the course of normal business? Lastly, does a change in view alter the market value of the property? I don't wish to answer your question....but rather think that these are the questions which should be posed.

 

[bodenstein]

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.

They are mountains in name only. It's not a mountain if there's no timberline.

 

[Howard Klahr]

The agent has fiduciary responsibility to the buyer

How do you know? What if they were a sub-agent to the listing agent? Then their fiduciary duty is to the Seller. Don't assume ...

Certainly the Seller had received some formal notification from the City or Developer relating to future development within XXXX feet of this property.

Why must there have been notice? Most communities do not send notices unless there is a change in zoning or land use designation.

 

[norapp]

IMO If the appraiser knew he should have put it in report. If he did not know then it's not his fault. I had a situation where an empty lot behind my subject was zoned light industrial. I called the zoning dept. and asked what was permitted for this lot. Just so happens there was application in place for a construction company to use this sight to store trucks and building materials. I put my findings in the report also saying there was no way to determine if the lot was going to be heavily used or just minimally. Heavy use could mean trucks in and out all day, The loud beeping when they back up and storage of materials could also be unsightly. Boy was the broker mad at me. I told him if he knew this and did not tell the buyer shame on him. I did not have to make that call but am glad I did.

 

[Kitarkus]

Why must there have been notice? Most communities do not send notices unless there is a change in zoning or land use designation.

I suppose that you are correct. IMO there is little doubt, however, that the seller had knowledge of pending development and was therefore required to include in the Seller's disclosure. Simply because he was required does not mean that it was done. If there was a vacant site adjacent to the Subject, certainly the Appraiser had an obligation to investigate to determine whether a potentially adverse condition could be forthcoming.

Similarly...I do not provide beneficial adjustment to houses in new and developing areas where their view(s) are CURRENTLY pastoral....but where the pasture is zoned R-1 with strong potential for immediate or future residential development. I do explain my rationale within the Report.

 

[Meandering]

How do you know? What if they were a sub-agent to the listing agent? Then their fiduciary duty is to the Seller. Don't assume ...
Why must there have been notice? Most communities do not send notices unless there is a change in zoning or land use designation.

State of New Jersey property seller's disclosure.





http://www.marybajwa.com/IS2/Data/AgentSites/64976/property disclosure.pdf

Responsibility of the buyer.

They are mountains in name only. It's not a mountain if there's no timberline.

Wrong again.

They are part of the Pocono's which are the oldest mountain range on the North American continent.

But hey, why let facts get in the way of your opinion?

.

 

[Mark K]

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?

There's actually been some interesting lawsuits over the year involving Wrigley and surrounding rooftops.

What's a Fenway?

 

[Howard Klahr]

If he did not know then it's not his fault.

It's not just about what the appraiser actually knew but what they should have known. Using the situation you described, that property is adjacent to a commercial/industrial zoned property. An appraiser should disclose that in their report. If an appraiser claims that they didn't know is insufficient, the should have known.

If there was a vacant site adjacent to the Subject, certainly the Appraiser had an obligation to investigate to determine whether a potentially adverse condition could be forthcoming.

That is what is being challenged.

Responsibility of the buyer.

But not necessarily that of the Buyer's agent.

What has not been conveyed by the OP in sufficient detail is whether the appraiser included any premium to the subject property for the view amenity that existed at the time and the basis of that premium.