Obligation To Take Future Offsite Conditions Into Account

[Terrel L. Shields]

UPSPAP

Where can I get a copy?

 

[Amy Perkins]

I think first you would have to establish whether the seller knew that the development was being built. Usually there is a notice of development sign. If the seller knew and did not tell the agent or the sign, if one, was removed, the seller should be responsible. If the seller's agent knew they would have to disclose it to the buyer's agent. If the buyer's agent did not disclose it to the buyer, the buyer's agent is responsible. If the appraiser knew, then they should have disclosed it and made an adjustment. If the condo developer did not post the notice of development, the developer is responsible. Finally, if the date of notice was not done until the buyer's purchased the property and the property was rezoned for development. Then no one is responsible. If the appraiser knew the zoning was zoned for condos they should have disclosed it in the report. This is why the lawyers sue everyone and bring them into a court of law.

 

[Meandering]

Doesn't matter.

The onus was on the buyer to due their due diligence before the entered into a legal binding contract to buy the house. The bank's appraiser comes after the buyer/seller/agents have all interacted in their best interests to negotiate a price. The bank's appraiser reads all those market reactions to opine a value as of the day the bank's appraiser did the inspection, for the lender's information.

The buyer had every right and opportunity to hire someone to run down permits in neighborhoods and chose not to do so. Which is an indication that the market does not care that buyers of view properties don't own the rights to the view.

New Jersey is not a rural area. As the eastern part develops all of its land that is not already preserved or under water, development moves west and north. At some point, in my opinion, there will be no unimproved (vacant) privately owned land in NJ. When that will happen, I don't know. I have not projected when the draw to NY city, and/or Philadelphia will decrease, and New Jersey is still within commuting distance of both.

There is no appraiser that will tell you they check building permits for vacant land in all neighborhoods of all subject's and all comparable sales and competitive active listings when doing lending work. There is no requirement for that either. Because the appraiser is there to read the market as of a specific date. If the market refuses to due its diligence, appraisers can only surmise that coming improvements are acceptable to the market. Because the market is knowledgeable. The market of buyers was put on notice prior to signing the legal binding contract, that the market participants were supposed to run down such things.

And to highlight this, there is no clause within a contract to purchase that says, the buyer will be reliant upon an appraiser's inspection of the property, surrounding neighborhood, or permit reviews, in deciding if the contract and negotiated price to purchase are valid, in New Jersey. Agents may place a value addenda in a contract, but again that appraiser's value is the opinion for the bank, as of the day, and is based on accumulated market reaction from knowledgeable buyers and sellers acting in THEIR best interests.

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[J Grant]

The buyer should have used their own due diligence. Which still does not excuse the appraiser, if appraiser should have known as course of normal business in the area and competence that a large vacant site across from a house might be built on, simple driving around an area can show if that is the trend. I doubt this large condo is the very first one in the area.

An appraiser does not check permit of every vacant parcel in the neighborhood, but a vacant parcel, especially a large one, that would if built on block a view from a subject, is only common sense if nothing else that it might be built on at some point. I make that comment in appraisals any time I see that , on land that is not parkland or preserve or protected. Whether or not this atty will have a successful case for the buyer is unknown. Whether they can show an appraiser should have known, or did know and failed to disclose might or might not go forward.

As appraisers , we learn from these posts whatever the outcome.

 

[Meandering]

And the last time you checked all the building permits in the neighborhoods of all the sales and all the comps was?????

And the last time you went over the GWB was?





About 4,000 people live in the four apartment buildings that straddle the Trans-Manhattan Expressway on the approach to the George Washington Bridge.

http://www.wirednewyork.com/forum/showthread.php?t=3682


Who says you need a large piece of land when you're not in sink hole city?


.

 

[Meandering]

Rockefeller University Starts Its Expansion Over a Busy Highway

 

[J Grant]

M-"And the last time you checked all the building permits in the neighborhoods of all the sales and all the comps was?????"

Read my post # 34. An appraiser does not have to check all the permits in the neighborhood of all the sales and the comps. Common sense, observation, and a bit of research about a pertinent vacant parcel that can directly affect by its close proximity the SUBJECT is all that is needed.

 

[J Grant]

Rockefeller University Starts Its Expansion Over a Busy Highway

If that is within an appraiser's market area, the appraiser would not be competent if they had zero knowledge of such a project, and misleading if they had knowledge and failed to disclose /analyze it if a subject value would be affected its proximity//view by the expansion.

Whether the RE agent should have disclosed it or seller should have disclosed it or buyer should have known is beside the point. Appraisers are not responsible for what others do or fail to do, appraisers are responsible for what they do.(or don't do, such as disclose)

 

[Meandering]

M-"And the last time you checked all the building permits in the neighborhoods of all the sales and all the comps was?????"

Read my post # 34. An appraiser does not have to check all the permits in the neighborhood of all the sales and the comps. Common sense, observation, and a bit of research about a pertinent vacant parcel that can directly affect by its close proximity the SUBJECT is all that is needed.

Then how would you know if the comp was purchased at a discount because a new building might be built that would block their view?

You demonstrate exactly my point.
We read the market's reaction.
If the market refuses to react,
We don't run around with a permit hollering, price discount, price discount.

.

 

[Meandering]

If that is within an appraiser's market area, the appraiser would not be competent if they had zero knowledge of such a project,

Which is similar to being in sinkhole land and claiming the appraiser should have checked permits on large parcels. Not competent to comment about the size of a parcel needed to build an apartment complex in the Northeast, New York, New Jersey market area.

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