Here's another Fernando tip, if you get a abnormal location property and you can't find a similar comp on similar location, I reject it.
There are other "easier" appraisal orders to work with during these times.
That goes with ADUs.
If I am going to do it, I charge a high fee. If some inexperienced appraiser accepts it at a lower fee, client got a good deal.
If they are available. If there are no recent sales go back in time or expand your search to look at similar roads. It can also depend on whether your subject is set back from the road or has egress and ingress on a side road that is also is next to.
yes, always better to have at least 1 similar locational influence. kinda like how did you figure out the adjustment. all answers above me are good, and correct.
go back further, travel future, don't accept it. but that being said, if you don't have any locational comps, just explain it, explain it. depends on the tolerance of the lender. some may really be annoying, so it's better to find that comp now, than having to do it later. you can always use it as comp #4 if the other comps are really more better.
While you don't necessarily need a recent comp in the grid, you do need sales data to estimate any impact on value. When using regression analysis to derive your adjustments, this is very easy and quick. I have seen some strong correlation between traffic counts and the impact on value, so even if there are no sales similar in location to your subject, there are ways to gauge the impact from the available data.
If my subject is affected by a busy street (or anything else), I include at least two sales with similar locations. Sometimes I have to expand my search 3 years and 3 miles. You need to bracket the external factor. If you don't, you might appear to be lazy, and that's a red flag to reviewers. A few time adjustments are better than across the board location adjustments.
A busy street may have an adverse effect, a neutral effect, or a beneficial effect, depending on the market.
A rural market may not consider a busy road as having any effect, since many homes may be typically located on busy roads in rural areas.
In a mixed use main street type scenario, a location on the busy street may be beneficial.
It depends on the situation and what you mean by "busy" street. Think about your comparables; if your subject is on a busy street, and comp 1 is located on a cul de sac in a quiet subdivision, do you think that buyers would view those two properties as being similar?
Always include a comparable with a similar locational influence if you can, but if you can't, make sure that you have data to back up your conclusions.