Unique Property - 2

[sosappraisal]

Purchase of a single family split level in average condition. It is
located in unincorporated Cook County within the Village of Tinley
Park, IL. It also features private well water and septic sewer.
According to the village zoning department there are a small number
of scattered lots which are unicorporated and feature well & septic.

The home is comparable to other homes in the immidiate market area
in terms of style, GLA, lot size and amenities. Those homes however
are selling for $ 80 to $ 120 grand higher. Cost to connect to public sewer and water is $ 30 grand.

I found four properties that are unincorporated with well & Septic but
Comp 1 ) four miles east and sold $ 40 grand over
Comp 2 ) three miles east, sold $ 60 grand over and previously foreclosed
Comp 3 ) three miles east, sold $ 90 grand over and estate sale
Comp 4 ) four miles east, active list, List price 45 over subjects SP

Any thoughts and suggestions would be greatly appreciated.

 

[Don Clark]

Similar thread:

http://appraisersforum.com/showthread.php?t=138540&highlight=DETACHED+CONDOS

 

[sosappraisal]

Mr. Clark, I do not see the similarities in my post and the similar thread that you
reference ( etached+condos).

 

[Ken Youngkrantz]

Unique property

You state the cost to connect to public utilities is $30K. How much will the typical buyer discount for this? $30K $45K $60K ? Can this be put in the loan? Will the city require them to hook up to the public utilities when it transfers?
This might be where your difference is.

 

[Don Clark]

Here is another similar thread.

http://appraisersforum.com/showthread.php?t=139062&page=3

What you have is not really that unusual. It is just my opinion but if you have no similar condo's to use as comparables then you would have to use either sales over 1 year old of similar condo's or use similar properties that are not condo's. Problems like this are not that unusual. I have used SFR's as comparables for duplex properties when there were no duplex property sales within 10-20 miles. If there are sales that are very similar, to the point of being almost identical except for the fact that they lack one important aspect, in your case, they are not condo's the I would use them and explain why I used them.

 

[Deleted member 77547]

I'm not quite sure what your questions is, but here's what I would do based on the info you provided.

Include similar quality splits within a mile (either in incorporated or unincorporated area..adjusting, if necessary for the superior utility of city water/sewer). If there are no other splits in the unincorporated neighborhood you're in I would include one that is distant (or see if there is a raised ranch nearby). If you have to use the splits that are 4 miles out, I would use that as a fourth comp. I would also include a listiing if one is available, as a fifth comp. Also. are the lots sizes of those that are selling for higher the same size as the subject?

Appraise the property, not the contract. How long was the subject on the market, etc. You could always ask the listing agent about how they arrived at their sales price and maybe they can give you some insight on the motivations of the sellers.

 

[athome77]

Sosa,

No inspections today so I thought I would spend a little time investigating. Is your property located on Lockwood? If so I think I found it on the MLS, only active split in unincorporated TP with private well and septic. Prior listings indicate this property was part of a larger parcel (165 X 550) which has since been subdividied and contains three outbuildings. Prior listings also indicate "unincorporated tinley will be annexed to oak forest." Is it possible the issues impacting value go beyond the cost to connect to sewer and water? Something worth investigating.

If is not the property on Lockwood...never mind.

 

[sosappraisal]

Athome77,

My subject property is not the one you have in mind. The block that
this house is situated on has ten lots. La Grange and 179. According
to the town and listing agent the original owner was the only one on
the block who chose not connect to the water and sewer. There are
no other apparent issues that are affecting the value. The listing agent
has not been very helpful.

I appreciate all the comments and suggestions. Mr. Clark, I think I get
your point.

Thank You All.

 

[athome77]

Sosa,

Thought I had it. Never mind. Good luck.

 

[Mike Boyd]

Unless there are known problems with the existing well and septic system, I have found there to be little or no difference in value if connected to public water and sewer. The hook up fees far outweigh the maintenance costs of the well and septic plus you do not have a monthly fee. This is probably why the owner chose not to connect. If the city or country mandates/requires connection, then I would only adjust for the cost to connect, plus the cost to destroy/fill in the septic system and to decommission the well or install an anti syphoning valve so that the well water cannot infiltrate the public water system. Some cities charge a monthly sewer fee based on water usage. What goes in must come out, I guess.

However, that is only MY market area. You might be able to pull up some historical data to support a yea or nay for your area.