Standard Comments for Rural Appraisals

[Birdman]

I read recently on some posts about some of the comments you normally use on rural appraisals, such as appeal, etc. Would like to hear your comments about market appeal etc. At the present time we seem to doing lots of them. Would like to have some suggestions for comments.

 

[Judy Whitehead (Florida)]

First of all, you will probably need to address the issue of the subject having a well and septic..."Septic tanks and wells are common in the area and do not appear to adversely affect marketability." Other comments that I make include (of course if it is true) The area is improved with both conventional and manufactured single family residences on both small and large acreage tracts. Most appear adequately maintained and have generally good appeal in the market. Shopping and other amenitites are in average proximity for the area.

Hope this helps!

 

[Mountain Man]

A couple from my area which, is largely a vacation home market, but maybe you can change them to fit your needs.
Mell.


Well and septic systems are typical for the area and do not effect marketability.

While it is typical for sellers to pay some concessions or closing cost, special financing or owner financing is not typical.

The marketing time of over 6 months is not due to a slow or declining market, it is rather a function of the seasonal marketing period during the warm summer months. This is a majority vacation home market where the population nearly doubles in the summer, and most homes sell during the summer months.

The market area, as a whole, is rural in nature and has a mix of uses. The land uses in the subject's immediate area includes single family, vacant land, agricultural, national forest, and some business-commercial as is typical in a small town. The county, as a whole, has approximately 13,000 full time residents. The housing types range from average quality manufactured homes to excellent quality, executive, mountain vacation homes.

 

[Kathy in FL]

:wink:

I've gotten so many requests from ticked-off mortgage brokers asking me to change my "rural" rating to suburban I'm considering writing an addendum like this:

The subject property is located in a rural area. You may note that although it is located within 15 miles of a Wal-Mart, and within 4 miles of a paved road, that there is a cow in the picture of the front of the home. Cows are quite common in the area, as are pigs, hay farms, and people with more than four dogs, none of whom have ever seen a leash or a fenced yard. Pizza delivery is out of the question. Garbage pickup is done by the husband of the homeowner and his F-150 pick up truck every Wednesday (more or less). Any chickens on the property are free-range and are fair targets for any rambunctious games of woods paint ball.

NO IT AIN'T SUBURBAN!!!

Kathy in (MOST RURAL!) North Florida

 

[Pamela Crowley (Florida)]

Oh Kathy,

That was GREAT! :lol: :lol: :lol:

 

[Dee Dee]

Ha! You should see what I get here!
To look on a flat map it might appear that there are comps just a mile or so away, but to get from the subject to those 'comps' you have to drive 15 miles through the canyon back to the main highway, turn and drive one mile, then double back in for another 15 miles up the next canyon to get there. It's almost quicker to walk over the mountain that's in between than to drive it (I've done this!).

 

[Anonymous]

"cell phone service is not available in the market area."

If that doesn't make it rural, nothing does.

 

[Mountain Man]

Kathy,

:lol: :lol: :lol:

I cut and pasted that one to use later!!
Mell.

 

[Tiny280]

Good comments.

In the central Ohio region, we often run into the opposite problem - the subject site is definitely suburban, but the underwriter insists that it can't be "Suburban" if the comps are over two miles away. Comps from 5 - 10 miles are frquently necessary when we have a 90 - 130 year old house, maybe with 5 - 15 acres and a stable or old barn, that is located within 10 miles of the WalMart (10 minute drive), 15 miles to two hospitals, and has Pizza Delivery from three different shops.

This has happened where the suburbs (Can we PLEASE call it "Exurban") have grown out from Columbus to take in most of the 7 surrounding counties.

There are LOTS of homes in immediate proximity to these older homes, but they were mostly built within the past 20 years and to a lower quality standard with no acreage- not very meaningful comps. So, we go to where the comps are and the underwriter bursts a vessel over the distance. The distances can go upwards of 10 miles in cases where the subject has been thoroughly renovated. When possible, we also throw in a fourth comp - one of the newer homes in close proximity - to demonstrate that the local market supports the value.

Most underwriter's calm down with the following language:

ONE OR MORE OF THE COMPARABLE SALES USED WERE IN EXCESS OF 1 MILE FROM THE SUBJECT. THE SUBJECT IS LOCATED IN A NEIGHBORHOOD WITH GREAT DIVERSITY OF HOUSING STYLES, AGES AND SIZES. DUE TO THE LOW POPULATION DENSITY OF THIS NEIGHBORHOOD AT THE TIME OF THE SUBJECT'S CONSTRUCTION, THERE ARE VERY FEW SIMILAR HOMES WITHIN ONE MILE. ALTHOUGH THERE ARE PROPERTIES OF COMPARABLE VALUE IN THE IMMEDIATE AREA, THEY HAVE MOSTLY BEEN BUILT WITHIN THE PAST TWENTY YEARS . THEREFORE, TO MAKE COMPARISONS TO SIMILAR AGE AND QUALITY SALES, IT WAS NECESSARY TO USE COMPARABLE SALES FROM OUTSIDE THE IMMEDIATE AREA. IN THE APPRAISERS' OPINION, ALL COMPARABLE SALES USED WERE THE BEST AVAILABLE.

This dosen't work every time - some underwriters are never incorrect, ya know :wink: - but it helps any open-minded underwriter to understand the market a little better.

Just a thought, I wonder if the close-minded underwriters are consulting an AVM :?: :evil:

 

[Damon Pedersen]

OK I think I got it.

Pizza Delivery = Suburban
No Pizza Delivery = Rural
No Pizza Delivery or Cell Phone Reception = No Comps (Find another appraiser)

Man, I have been trying to define suburban and rural for years.

THANKS,
Damon