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Present Land Use %

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Kenneth Pollard

Freshman Member
Joined
May 20, 2003
I have heard a number of explainations as to what boundaries to determine the land use. What is the consensus out there that we consider for land use percentages? Is it the immediate neighborhood? The immediate development if a townhome complex? The neighborhood boundaries that were determined for the subject? I was taught that we are to use the neighborhood boundaries that were determined for the subject property no matter what type of property the subject may be. Can someone clarify this for me?
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
I use the neighborhood boundaries that I define on the appraisal report for the % of land use. Unlike pamela I don't make sure that it includes all comparable sales but that at the very least I have two sales within the boundaries. And explain for the ones outside the boundaries that they are in a competing neighborhood unless there is a location adjustment required then I explain why I used it. IE.. Sale 3 and 4 are outside the market area boundaries and required and negative/positive adjustment for said area but said sales were utilized to bracket the subject by GLA/basement SF/site size/actual age/quality or whatever was required to bracket the subject. And at least one comparable sale similar to the comparable sales located in the subject's market area. So far (knocking head on wood) I have not had a call back regarding this.

Ryan
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
I use the "market area" that my subject and neighborhood are located in. In my case the market area is the entire northern part of the county, with comps sometimes located twenty or more miles away from the subject. That drives UWs crazy. I love to drive UWs crazy... not that its very hard to do. :p
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Ask yourself..."what how would I define the marketing area?" It could be a specific subdivision, neighborhood, community, or in Richards case...half the county.

My technique would be something like this....

The Cascades @ Springs Ranch: Bounded on the north by Waterman Street, on the east by Allens Park, on the south by Waterman Way and on the west by Pony Tracks Drive in the eastern quadrant of the City of Colorado Springs. MLS marketing area PWR.

Personally I liked it when they wanted us to outline the boundries on the map. What I don't like to see is when the appraiser makes the whole community the marketing area so that they can say all their comps were from the same neighborhood.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I forgot to include information on land use. At best, this is usually a guess on the appraisers part. In fully developed neighborhoods there are usually undeveloped lots, open spaces, and parks. Rarely would it be 100% single family but a lot of appraisers indicate that on their reports.
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
Hi Ken
What state are you in?
The question you ask has many variables.
 

Lee SW IL

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
[/QUOTE]I use the neighborhood boundaries and make sure that includes all the comps used.
Pamela, just curious, do you have a difference in meaning of neighborhood boundaries and market boundaries?

On neighborhood boundaries I describle specifically where the property is located. Ei, Subject property is located south of Broadway, west of Walnut, north of Main and east of the Town Park. But, the market boundaries may be the town. Or would you state subject property is located in the town of Lincoln?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Hi Lee,

Neighborhood and market boundaries, to me, are usually as close as I can get to the subject taking into consideration areas where someone that would be interested in the subject might be looking for other houses. Sometimes it's a small area defined by streets, rivers, or whatever makes sense for that particular property. A slightly odd one we have here is an area here that is a few miles long and only a couple blocks wide. It runs along the West side of Doctors Lake and east of Doctors Lake Drive and the market typically shows that if the subject is located there, the comps should be too.

A situation such as a small 'gentleman' horse facility on small acreage, I will describe the subject immediate area with local boundaries. The comps might be many miles away in a different but similar market area; same type of property and buyer though. For the more urban/suburban areas, I do everything I can to keep the comps within the defined market/neighborhood area.

Another 'it depends' where explanations can become lengthy and I sometimes post too abreviated answers that don't always take all situations into consideration.
:p
 
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