Reconsideration Of Value, How Do You Handle It?

[Mike Garrett RAA]

Years ago I proved the school district is an amenity that increases value by paired sales of the same model match on opposite sides of the school district boundary line. Homes in district 20 (Air Force Academy District) sold for $5,000 more than homes in district 11 (Colorado Springs).

Busing often clouds the issue too. There was an effort to create racial balance in some of the school districts IN MY MARKET by busing children from one district to another. When that happened it was nearly impossible to say there was a market driven preference between the districts. The final straw was when one of the districts located in the lower priced neighborhoods had the highest SAT scores.

One should be careful when considering school districts and making adjustments. If you can prove it then do it. If you don't have data to support an adjustment...don't do it.

 

[TRESinc]

and whoever else you want to including the FBI and CFPB. FDIC, OCC, etc.

hahaha. i almost spit my coffee out when i read this. thanks for the good joke eli, i needed one today. can't wait to hear a response from the FBI about an appraisal issue...

 

[Deleted member 80407]

What about where segregation regulations means a street may have children assigned to a school district and the "school district" as such does not exist and until you enroll the child, you don't know if they are bussed or not?

Hi Terrel, I am suggesting an appraiser does not try to quantify adjustments for any differences in school districts. HOWEVER, if properties located east/west or north/south of a particular street are selling higher than properties on the opposite side of a particular street there is a reason. Reasoning could be anything including differences in school districts. When making a location adjustment, I do not try to quantify what is causing the difference, but just stating the difference is existing and adjusting for the difference.

 

[TRESinc]

a few years ago there was a new residential development going up. it was all contained in one city however 10% of the lots were in the neighboring town's school district. the builder was charging $12,000 per postage stamp lot due to the neighboring school district being vastly superior to that of the rest of the development.