Using A 20 Mile Radius As The Neighborhood

[residentialguy]

I agree but neighborhood boundaries do change for many reasons. Remember how dynamic the real estate market is.

Over time, sure. But on the effective date, there is only one boundary for that type of property.

 

[Eli]

People don't want to expand their knowledge beyond the neighborhood. The most important factor is who am I competing with. Put ourselves in the property's shoes.

 

[Terrel L. Shields]

far too many appraisals where in the appraiser defined the neighborhood based on where the comps were located

They are sales outside of the neighborhood, therefore, the appraiser must have due diligence in making sure that they are on equal demand areas or adjust if they are not.

Too many are taught that and too many were not taught the difference in "market area" and "neighborhood"... big problem and some have grown tired of being zapped by PPoor underwriting stipping them so they expand the neighborhood to put a stop to the pain.

 

[CANative]

I didn't read past Page 2 of the comments because it was too annoying. So maybe this has already been explained.

Working on a sale in a very rural area of Wisconsin. The subject consists of two reports: One is for a manufactured home on one acre and the other is a bermed/earth home on 41 acres. Very few comps for both properties as manufactured and earth homes are rare in the area. I have used a 20 mile radius from the subject as my neighborhood. Bank is telling me that I can't do that and that I have to use a Township or partial area of the County as my designated neighborhood. Any thoughts?

The Bank is correct but is not even capturing the detail the GSE's and the Government agencies want.

You have to describe the subjects neighborhood in some sort of detail with some sort of boundaries. NSEW, "South of the big pine tree near the north fork of the Eel River, North of the end of Old Dirt Road; West of the Ocean and East of the Coastal Mountain range."

"Twenty Mile Radius" may describe your search for comps in competing locations and that is perfectly fine (I sometimes need to go 100 miles) but it's not a neighborhood description.

For example:

Neighborhood Boundaries:
Located in a remote area of the County and neighborhood boundaries are not distinct nor easily described. Very large, sparsely developed geographical area with few roads, streets or highways to use as reference. A general description of what might be considered boundaries for purposes of comparison would be: The southwesterly quadrant of the Willits region, more specifically - South of Highway 20; East of the western terminus of Muir Mill Road; North of Reeves Canyon Road; West of Highway 101. Buyers of this type of property would also consider most of the outlying areas of Willits as well as the communities of Laytonville, Covelo, and Dos Rios.

 

[Eli]

I wouldn't doubt a new administration of CU and other things like fees before it is over.

Public trust.

 

[djd09]

Sometimes boundaries are better left ambiguous.

 

[Eli]

Sometimes boundaries are better left ambiguous.

Let's just swing the gate wide open!!!

Are you an avm man?

 

[djd09]

Are you an avm man?

What's a avm?

Boundaries are a controlling device.

 

[Eli]

The boundaries change continuously for many different reasons. Like a city annexes an area for example?

Or a school zone is redefined? That's just two little possible scenarios.

I tend to use physical boundaries and corporate limit boundaries. Like city and street and river boundaries for neighborhood boundaries. A property can be the best thing in the world, but neighborhood counts in context.

 

[CANative]

The boundaries change continuously for many different reasons. Like a city annexes an area for example?

An appraisal report is good for one day.