Tennis Court Adjustment Help Please

[chad hampton]

Not sure if you read my op. The tennis court is in shambles, cracks, chipping paint, etc. The court is a financial burden on anyone that doesn’t play tennis. If you do play tennis, the cost to cure is high. I understand who the property is being marketed to, and either tennis player or not, it has no value. I would like to see someone explain to an underwriter or the state board how they came up with the value for this tennis court with no comps in the market area.

Ok, didn’t read that. If you can’t play tennis on it, then I suppose it would have very minimal value, or zero. Like a dilapidated horse barn or a empty swimming pool with cracked decking.

 

[David S. Roberson]

I've probably seen two tennis courts here in my market over 44 years. You think they have a lot of contributory value?

 

[ZZGAMAZZ]

Just a note; North/South facing tennis courts are more desirable than those that face in different directions here in California. You need to talk to brokers in areas of high dollar properties to get a sense of contributory value. Past paired sales analysis is good, however, make sure you know which direction the paired sale courts are facing.

????? East - West configuration leads to the old quickdraw cowboy trick based upon blinding your opponent by the setting sun ??????

 

[ZZGAMAZZ]

Not sure if you read my op. The tennis court is in shambles, cracks, chipping paint, etc. The court is a financial burden on anyone that doesn’t play tennis. If you do play tennis, the cost to cure is high. I understand who the property is being marketed to, and either tennis player or not, it has no value. I would like to see someone explain to an underwriter or the state board how they came up with the value for this tennis court with no comps in the market area.

Wouldn't you first prefer to determine market reaction to an average condition court, and then make functional depreciation adjustments for the cost-to-cure the defect?

 

[nachocheesefries]

Hello,
I am appraising a non-arms length transaction among friends for a reputable lender. The custom built home sits on a little over an acre and has a little over 3,500 GLA. It is in a solid C4 condition. There is only one comp that I found in the market area that has a tennis court and it is in superior condition with superior amenities and it closed over six months ago (large market adjustment would be required), it is impossible to use paired sales to extract the true market value of this tennis court, due to the superiority of the comparable.

The average life expectancy of a tennis court is 25+ years if well maintained. This court was built in 2001 and is in rough shape (cracking in some places, water damage, peeling, etc). I tried attaching a picture, hopefully it worked. I'm not a tennis player but maybe someone here can give me some insight. If the tennis court is 21 years old, then 4/25=.16, the average cost to construct a tennis court in this market with fence and lights is approximately 100,000+. So, .16X$1,000,000 is $16,000. I don't know enough about tennis courts and was hoping to get some input from you guys. Do you think $16,000 is an appropriate adjustment? I don't think this tennis court was well maintained and honestly I think it would be a financial burden, as opposed to a value adding amenity. This method does not take into consideration market demand for the tennis court. On a scale of 1-10, I believe market demand in this area is a 1 at best. Would taking 10% of $16,000 = $1,600 be an appropriate method of adjustment? Should I still use the superior comp with the superior tennis court and explain that extracting the value for the tennis court is not possible and that I used this method? Does anyone have a better idea. I really don't like tennis, hopefully someone here does and can provide me with some directive. Thank you if you've gotten this far, I really appreciate you taking the time to read this and possibly respond.

Cost then depreciate it about 90%...no one wants a tennis court....

Need proof...go find a tennis court sale, pair it-call the agents (whatever), then you will discover that no one cared about it except for giving their kids a place to ride their bikes and such. Very specialized feature like a sauna or telescope. Typical buyer does not care. Make the call and move on.

 

[ZZGAMAZZ]

Cost then depreciate it about 90%...no one wants a tennis court....

Need proof...go find a tennis court sale, pair it-call the agents (whatever), then you will discover that no one cared about it except for giving their kids a place to ride their bikes and such. Very specialized feature like a sauna or telescope. Typical buyer does not care. Make the call and move on.

I.E., "The pool of potential buyers is diminished by the relative absence of demand for the superadequate feature, which also experiences significant curable physical depreciation..." ??????

 

[nachocheesefries]

I.E., "The pool of potential buyers is diminished by the relative absence of demand for the superadequate feature, which also experiences significant curable physical depreciation..." ??????

ooooooo that is good smarty pants!