• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Stigma Adjustments

Status
Not open for further replies.

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I am finally finishing up a narrative on a house that the sewer line broke and flooded the basement of the house. It had 2-3 feet of raw sewage standing in the basement at one time. Owners moved out and a law suit is pending with the city.

Home has been repaired and cleaned. Since I am not environmental expert I have made my appraisal conditional on an environmental Inspection (which is to be done at some time) and assumed the house is safe.

Only thing left is I am trying to decide on an adjustment for Stigma. The county said the house was not fit for occupancy due to the standing sewage and the folks moved out. As I said since then the house has been cleaned and I could not see any signs of the flooding when I inspected it.

Due the publicity I am assuming that there is some stigma attached to the house for the next 3 or so years and at some point that will die away. I have been unable to find any other house that was damaged at the same time. I have not found any other home that might have a similar stigma attached to it.

Based on what I call the Twin House Theory I use professional opinion to make a nominal negative adjustment. Twin house theory is two identical homes side beside, one had a sewer flooded basement and one did not. Would you be willing to pay the same for both house?

I have made up my mind and all that is left is a final proof read and printing. But I though I would see if anyone had any input on the stigma adjustment. I realize that my adjustment is just my opinion but I have nothing else to go one.

Any thoughts?
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Jeff,
Contingent Value Methodology or Market Survey technique. Pick up the phone and call agents that are active in the area and get their input as to the market reaction to the situation. This will help support your adjustment and it has its own fancy title and is accepted in the courts world wide as a valid approach. It works in the courts because appraisers are exempt from the here say rule unlike other expert whitnesses. :D
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
There was a whole thread a month or so ago on this issue. You might check the archives.

Roger
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Originally posted by Frederick R. Ruffell@Apr 16 2003, 10:31 AM
Contingent Value Methology
<_<
(sic)

Did you mean Mythology?!?!

:rofl:

sorry ... :redface: ...
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Thanks Lee Ann,
Early morning post and my brain (infused with caffine) was working faster than my two index fingers. I sure miss the old spell checker on the old forum.
CVM is a valid approach and at the very least adds some amount of credibility or reasonableness (i do not know if that is a word much less how to spell it :lol: ) to your across the board adjustments, which would otherwise be viewed as subjective by the underwriter. Anyway I am just trying to help Jeff out. It (CVM) has worked for me in the past and I will continue to use it in the future.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Frederick:

Check out the iespell that Wayne recommended to me... being one of the primary fumblefingers posters, whether fully caffeinated or not

http://iespell.com/

seems seamless and works great and is shareware and all you have to do is blip up to tools and click and WOW! :usa:

...then all you have to do is remember to use it :redface:

:rolleyes:

Oh and I found your post (regardless of spelling) usefull- already clipped and posted to my greatest of the fourm collection!

THnaks! :rofl:
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Contingent Value Methodology or Market Survey technique. Pick up the phone and call agents that are active in the area and get their input as to the market reaction to the situation. This will help support your adjustment and it has its own fancy title and is accepted in the courts world wide as a valid approach.

If you got nothin' else I say go with Frederick's idea. Anecdotal "evidence" is better than none at all I guess. And it is an "estimate". Or should I say your "professional opinion"? I'm betting you'll do a good job with it either way, Jeff. And if they have any questions it will be an easy answer for you. B)

(Where's the thumbs up emoticon?) ~!


Go iespell! :p
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks