Shared Driveway Easement Help

[Fernando]

When I drive by my comps and see one having a shared driveway, I immediately discard it if my subject has no shared driveway.
Some say it doesn't have an adverse effect but my feeling is to not even consider it as a comp. Move on to a much better comp with typical driveway thus no need to consider adjustments.
If subject has shared driveway, I normally don't take the order unless I get a high appraisal fee.

 

[Artemis Fowl]

Ask your assessor for comps. Use proxy sales. They don't have to compare to the subject but should compare to each other in order to derive a percentage based adjustment. Apply that percentage to the subject. This is the type of adjustment that tends to stay consistent over time so there should be plenty of data to work with...just need to find it.

 

[redfish]

GIS maps can be handy when searching for a specific site feature.

 

[Fernando]

My AMC indicated if subject is atypical, appraiser should notify them to see how they want to proceed.
If you have difficulty finding a property with shared easement, you may want to contact them regarding this issue and maybe even ask for higher appraisal fee since you have difficulty finding such comps.

 

[George Hatch]

Houses in the same neighborhood would be more likely to have shared driveways. You can look on GoogleEarth or on the county's GIS and identify properties that share a driveway. Find one or a few that sold.. doesn't matter how long ago. Find a sale that would be a good pair. Do the analysis extracting the market reaction on a percentage basis. Make the adjustment and include comments about how it was derived in your report. Done. And, yes... it might take more time than you'd like to spend.

This is almost always the most effective way to develop an adjustment factor for an atypical attribute. You're not looking for direct comparables for your SC grid; you're looking for support for an adjustment factor, independent of your (inadequate) dataset. .

 

[sputnam]

Market reaction is measurable (usually). That is a very important part of what we do. Of course, you try to use sales that are as similar as possible to the subject property. When you don't have perfect matches for the subject you have to make adjustments. Those adjustments have to be supported by market data. Sometimes it's hard.

 

[Ariba]

Market reaction is measurable (usually).

Only if you have sufficient and good data. A shared driveway is not IMHO. Some common sense should be used. However, it appears more and more that common sense is an oxymoron with many appraisers.

 

[Ariba]

(a) I promise - I am real. (b) it's been my experience, as a Texas appraiser board mentor and investigator, that one documented data point utilized as paired sales analysis is stronger than an appraiser's PFA - wait for it........ 100% of the time.

I have been using that same philosophy in my stock trading. Maybe that is why I am still appraising. Use some common sense.

 

[alebrewer]

I have been using that same philosophy in my stock trading. Maybe that is why I am still appraising. Use some common sense.

So, since I apparently lack common sense, how would you recommend documenting market reaction to shared driveway?

 

[Deleted member 157170]

Hello,
I am appraising a property that has a shared driveway easement with the neighbor. Both neighbors use the same driveway to gain access to detached separate parking garages in the back. I reviewed the easement and maintenance agreement from 1972 and it appears everything is spelled out clearly. I cannot find a comparable with a shared driveway anywhere nearby. I spoke to a couple agents and they said that they would consider that a negative characteristics when establishing a price for the property. How do I derive a negative adjustment value for a shared driveway? Any help would be greatly appreciated. Thank you so much!

I have not once seen a shared driveway impact value in any way. If I ask borrowers, buyers, and sellers what they think they generally don't even have a clue.

This seems like a classic marketability versus value thing. Agent thinks all marketability considerations also affect values, but doesn't realize that they don't necessarily correlate. I would ask the agent for paired sales to back up their claim and they would probably not have anything to prove their assumption.