Quality of the neighborhood

[NC Appraising]

Highlights From the Profile of Home Buyers and Sellers

For most home buyers, the purchase of real estate is one of the largest financial transactions they will make.

www.nar.realtor

59% for the quality of the neighborhood.

I guess the location does matter after all. Who would have thought?

 

[Fernando]

Appraisers knew location was an important factor. Interesting that NAR has quantified the numbers including age of buyer.
Old buyers prefer 1 storied homes due to mobility issues. Best to use all one storied homes if subject is one storied.

 

[alebrewer]

I think C & Q ratings for the neighborhood might help the GSE's AVM work even better.

 

[Tom D]

Around here the lack of zombies affects the quality. The amount of trash affects the quality. The amount of sec 8 affects the quality. The amount of poor people affects the quality. The number of boarded homes affect the quality. Am i allowed to mention those qualities.

Quality of the neighborhood is a coded term being used by the poster. But, the term location instead is a more gentle term, please correct your bias.

 

[Fernando]

Long time ago before the current complainers on usage of ban words, I thought I could indicate high crime area if I had the stats to prove it.
Still I was too lazy to research and get the data and never bothered.

 

[Surf Cat]

Even though I don't doubt 59% consider quality of neighborhood important, I'm calling BS on the reasoning listed....the NAR is being very careful with their wording.

 

[Terrel L. Shields]

Old buyers prefer 1 storied homes due to mobility issues. Best to use all one storied homes if subject is one storied.

Even if that demographic prefers 1 story, there is also a difference in the cost of building up vs out and despite the claim that "cost does not equal value" - simple fact. The 1.5-2 story home is cheaper to build and can be sold cheaper by the developer. And that first sale price fundamentally 'sets' a benchmark for the property that follows it through time.

 

[Fernando]

On April 23, 1989, San Francisco Chronicle newspaper had a front headline - 'Second-choice' districts surging.

"Home Buyers who can't afford to live in SF's more popular neighborhoods have spilled over into adjacent communities...."


I wonder if that article would be appropriate today. We've come a long way since then.

 

[sputnam]

The academics among us like to try to tease out every factor that leads buyers to prefer (and pay more) one neighborhood over another. As the appraisers, we don't much care about why people do what they do. We care about the fact that properties in a given neighborhood command higher (or lower) prices than another neighborhood.

 

[NC Appraising]

The academics among us like to try to tease out every factor that leads buyers to prefer (and pay more) one neighborhood over another. As the appraisers, we don't much care about why people do what they do. We care about the fact that properties in a given neighborhood command higher (or lower) prices than another neighborhood.

Man, I usually agree with 95% of what you say...I think you are wrong on this.

it is our job to know about why people do what they do. Appraisal 101.


I guess you have never used the survey method to support your comps? Or never contacted the re agent to ask what the feed back was on a comp or the subject property?

Just like when you make that condition adjustment, you have to explain why. Just making the adjustment is no longer good enough. Why.....same for the neighborhood.

Sure, you can have data showing there is a difference. But are we no different than an AVM? If we are to make adjustments, but not explain why....just use an AVM.

I wonder how well that would hold up in court. Why did you make that adjustment? Because the data said so? But why? Dunno, that's what the data said.

Why? Schools, amenities, airport, employment centers, public utilities, etc.