Reviewer's opinion of value

[CANative]

He threw in the $900k ocean view property with a 1000 sf larger house to raise the bar.

I'm coming in at about $690-$700. I'd like to come in lower because I don't like the flat lot with not a single tree and the weird location near the state highway but there aren't enough sales to be that precise. They do have a neat flat track though.

 

[Mike Kennedy]

Jim........clearly agree with you.......however.....as noted.....for "specialty" props..........water......mountains.....vintage.........entirely common to spread the range wide................with additional support.........and adequate adjustment...........even greatly in excess of standard line, net, gross........if appropriate.........also looking at the range of Adjusted Values..............suggesting that range is missing a 4th / 5th.......perhaps adequate explanation as well.......no actives? contracts? ...........outdated sales closer in range to first two comps.............plus use of an "ocean county" comp .........(perhaps i wrongly assumed the 900k sale was that one)? if ........so........still believe........value unsupported by JUST those 3 comps.........detailed support unknown.......??? if reconciled toward bottom .........suggest that further indicates 900k sale is NOT comparable. ergo .........skewed value opinion which placed "equal" weight on all 3.

ps. with two major rivers, mountains, rural, agri, suburban, and urban, and an extremely wide range from 1600s thru new properties..... in the Hudson Valley...............exceeding Standard Spreads.........often the norm..........merely challenging .......900k .....when first 2 comps and final value appear to be at bottom of range.......with no support from addtl comps.



** see first line in Greg's above........appeared simultaneously.

 

[Fred]

The Haiku WITHOUT the green was already too much for me.

He threw in the $900k ocean view property with a 1000 sf larger house to raise the bar.

I don't agree with doing that.

 

[CANative]

My area is the land of no comps. This area is the land of absolutely no comps.

I rejected two of his sales and kept the first. I found three sales which were much more similar in lot size (except one) and improvements.

Subject is 15 acres. His comp 1 is 19 acres, my comp 1 is 10 acres, comp 2 is 20 acres and comp 3 is 67 acres.

I made a more reasonable upward adjustment to his comp 1 for the subject's 2400 sf brand new steel building (me $50,000 instead of his $20,000) and a downard adjustment for this comps extra 4 or 5 acres and the adjusted grid now looks like this:

$690,000+- $706,000+-, $709,000+-, $698,000+-

 

[Fred]

I found three sales which were much more similar in lot size (except one) and improvements.
Subject is 15 acres. His comp 1 is 19 acres, my comp 1 is 10 acres,

I don't "agree" with that. 19 is closer to 15 than 10 is.

 

[Jungle Boy]

10 is 2/3 of 15, while 19 is 19/15 of 15. I wont' include a percentage relationship because it could be skewed to better make my point. It's the relationship, not the difference, that counts.

On the other hand, Greg's value is much closer to the truth than that of the of the original appraiser. And it brackets the subject.

Therefore, I agree with Greg's value, and his reasoning.

Good thread George.

 

[Fred]

10 is 2/3 of 15, while 19 is 19/15 of 15. I wont' include a percentage relationship because it could be skewed to better make my point. It's the relationship, not the difference, that counts.

First, if you have to skew it to make your point, that ought to tell you something.
Second, I used to joke that on this forum, you could find someone to disagree with 1+1+2. You don't "agree" that: 4/15 < 5/15 :icon_question:

 

[Jungle Boy]

19 is closer to 15 than 10 is.

I agree with that, but there's more to it.

If we used the numbers 11, 15, & 19.
11 & 15 are 4 apart, as are 15 & 19.
However, 15 & 19 are "closer" or more similar to each other, than 11 & 15.
19 is 26.67% larger than 15, while 15 is 36.36% larger than 11.
Therefore, using strictly numbers and not accounting for any real world considerations, 19 would be a better comparable to 15 than 11 would be to 15.

Your statement, "19 is closer to 15 than 10 is" is entirely correct, in more ways than one.
But you already knew that.:blush:

 

[xm39hnu]

19 is 26.67% larger than 15, while 15 is 36.36% larger than 11

Raimo, you've gotta quit smoking that stuff during working hours. Comps are compared to the subject. 5/15 is a bigger difference than 4/15. Your example compares 19/15 to 15/11.

 

[Jungle Boy]

Jim

I was making a point. I know the original numbers were 10,15,19.

If you had slowed down a little, maybe you'd have gotten it.

It all depends on what you've been smoking:happy: