View Adjustment Guidance and Opinion Help Please

[Tom D]

the subject might be a v3, while the comps could be a v2 or v1. other normal properties could be just the normal v4. i suppose you can use the depreciated view approach.

 

[J Grant]

Majority of RE agents will not present a property realistically, thus the time wasted combing thru MLS photos/calling them to find out what a view actually is. A condo will have just a sliver of ocean view from the corner of a terrace, but they'll describe it as a "Glorious Ocean View".

Mis representing properties becomes so ingrained they seem to believe their own exaggeration.

Funny story - I was inspecting with listing agent present, a condo unit ( 200k range ) that backed up to a golf course. Every unit in the building backed up to the same golf course . I commented, " What a nice view". Looking offended, she said, " It's not nice, it's STUNNING . And the only unit with this view in the building." I politely remind her that every unit has a golf course view. She replied; "Well, this unit has the million dollar view."

 

[alebrewer]

I always consider "the view" from the front porch. The additional views may help or hinder marketability.

How would I know the views from the comps upstairs bedrooms? If you adjust for view should it not be from the upper level of comps to upper level of subject, in this case?

Haha - in my market, there is a large lake that provides regional recreation, fishing, camping, etc. Folks will build 3rd and 4th stories on their homes just to have a 'view' - and other folks will pay premiums for having to walk up 3 flights of steps to see the lake...

 

[redfish]

You could start by looking at the sales history for the subject property and compare it to other sales that happened in the same time frame to determine if anyone paid a premium in the past for the views that the subject has.

 

[CaliforniaSD]

Majority of RE agents will not present a property realistically, thus the time wasted combing thru MLS photos/calling them to find out what a view actually is. A condo will have just a sliver of ocean view from the corner of a terrace, but they'll describe it as "Glorious Ocean View" and put a full photo of the ocean in the listing.

Mis representing properties becomes so ingrained, that they seem to believe their own exaggerations .

Funny story - I was inspecting with listing agent present, a condo unit ( 200k range ) that backed up to a golf course. Every unit in the building backed up to the golf course for same/ similar view.
I commented, " What a nice view" . She looks offended and says " It's not nice, it's STUNNING . And the only unit with this view in the building." I politely remind her that every unit has a golf course view. She replied; "Well, this unit has a million dollar view."

I personally think the agent should lose their license over something like that. Further, I believe all real estate agents should start being held accountable for misrepresenting listings and exaggerating or even sometime straight out lying. I call them all the time and listen to how they admit to having exaggerated, after the property sold, it's annoying and a waste of our time. How are we supposed to do our jobs with false or exaggerated information? Why do appraiser have to be held to insanely high standards and agents can get away with murder? What a mess.

 

[J Grant]

I personally think the agent should lose their license over something like that. Further, I believe all real estate agents should start being held accountable for misrepresenting listings and exaggerating or even sometime straight out lying. I call them all the time and listen to how they admit to having exaggerated, after the property sold, it's annoying and a waste of our time. How are we supposed to do our jobs with false or exaggerated information? Why do appraiser have to be held to insanely high standards and agents can get away with murder? What a mess.

I look at it this way, the fact that agents routinely mis state, exaggerate, and hide the negatives about a property gives appraisers a need in the market. If all agents were truthful and their listings showed accurate square footage and other property features, the AVM's would be so reliable we could be more easily done away with.

Agents are allowed, legally, to engage in a certain level of exaggeration and mis repsenetaion ( see the legal case of Puffery - is a case they fought and won ). They claim MLS is a form of advertising a property, and advertising legally allows puffery. The agents are not allowed though to hide a known property defect from a buyer. though

Of course if one follows the logical conclusion, buyers can be mis informed due to agent or owner puffery - thus pay prices that do not always reflect value - creating continued need for our services.

 

[mngappr]

The subject property is facing a canyon across the street and there are two bedrooms on the 2nd floor level that have a view of the canyon if you stand up and look out the window. The listing agent is very adamant that this constitutes a view. I have no comparables in the subject neighborhood that have a similar situation. However, I do have comparables with views of a canyon / mountain that can be seen from the living room, kitchen, dining room, and the backyard.
I would like to get everyone's opinion on this matter. Do you believe the subject constitutes a view? If so, how would you approach extracting value for this view from only two bedrooms (while standing directly in front of the window)?

Thanks for your time everyone, I always appreciate everyone's great feedback.

I have always found that if an amenity is that limited, it isn't beneficial since it is so restricted. Think about it, you have to stand up at a bedroom window to even notice its there. How could you possibly come up with a market derived estimate of its value. If the estimate of value for any grid adjustment cannot be established through current market activity, it should be addressed in the report but you really cannot say it has value to the typical buyer. If you believe this will create an adverse situation for your report, simply go back in time and try to find a sale that has a similar view and see how it fared in the market when it sold.

 

[Terrel L. Shields]

You have two lots that are similar in size. 1 has a view and 1 doesn't. You make the adjustment on the site line?

Prove me what a "view" is... If I have 2 lots and one has a "view" then that "view" is incorporated in the LAND VALUE, not some ephemeral intangible observation from the porch. It's like a lakeview vs a lakeside. A lot with access to the water has a different value from one that doesn't. And if that lakeside lot sits on a high cliff it may have a better view, but water access may be a problem.So the buyer has a choice. And a bluff lot may sell no better than the "lakeview" lot higher up the hill if access to the water is denied. It is the utility of the lot that counts, not its magical "view."

Secondly, that 'view' can be compromised with construction between the subject and the view... The cabin my parents used to own was a low unobtrusive house and the lake view of the houses across the street was unobstructed. The current owner of that cabin built a 3 story house on this lakeside lot and blocked much of the view of at least 3 houses. In fact, as the largest of the 25 or so houses on that hillside, it stands out like a sore thumb to every house there being directly next to the boat ramp. The vacant lot would be worth 10x what my parents got for it 30+ years ago. So how can you attribute it as some separate feature from the land? It's value isn't the "view" (which is superior up the hill from it) rather its lakeside access.

 

[Terrel L. Shields]

Why would the condo view be an exception? Because it isn't tied to land value?

The ocean side view of a condo would be superior to the side facing what? Town? a Swamp? other Condos? Since the land is co-owned by the owners association in effect, its attribution would be to the location (viewpoint) of the condo, right? The right to occupy that particular space would be impacted by what you can do such as watch the sun set (or rise) from you balcony or kitchen nook.

 

[Terrel L. Shields]

You could start by looking at the sales history for the subject property and compare it to other sales that happened in the same time frame to determine if anyone paid a premium in the past for the views that the subject has.

I often go back to the original subdivision sales (when in a development) and see what the vacant lots sold for (most here were sold as lots not developed by a builder)