View Vs Location

[pdaniel7]

I would like to know what other appraisers are doing for view and or location adjustments. I live in the Denver area of Colorado and I frequently, within the same appraisal, have a subject property and comparables which back to open space/greenbelt with good mountain views, do not back to open space/greenbelt but still have good mountain views, back to open space/greenbelt with no mountain views, and the occasional one which may or may not back to open space but sits on a hill and has long distance views of the suburbs or city, but no mountain views. Generally, I am able to find comparables in which to extract a supportable adjustment that makes sense. However, I am appraising a home at a price point in which there are very limited similar comparables. In this case, I have a very small neighborhood (about 30 homes) of luxury homes. It seems like every comparable I have falls into each of the categories I mentioned above and my head is spinning on figuring out how to separate view from location. To make it more complicated, my subject does back to open space with mountain views, however, half of it is a very close hill in which you can't see anything over it, and the other half where you could actually see the mountains is mostly obstructed by tall trees along the fence line. If they cut down about 10 to 12 feet of off 6 or 7 pine and aspen trees, the view would be greatly enhanced, but that's not how it is as of the inspection date. In this case, I am inclined to leave the location as neutral/residential since they are all in similar neighborhoods and make the adjustments under view since much of the allure of backing to open space is the view of the open space itself. I would love to see other appraiser's thoughts about view Vs location and methods for determining appropriate adjustments for both. Thank you!

 

[Don Clark]

I would like to know what other appraisers are doing for view and or location adjustments. I live in the Denver area of Colorado and I frequently, within the same appraisal, have a subject property and comparables which back to open space/greenbelt with good mountain views, do not back to open space/greenbelt but still have good mountain views, back to open space/greenbelt with no mountain views, and the occasional one which may or may not back to open space but sits on a hill and has long distance views of the suburbs or city, but no mountain views. Generally, I am able to find comparables in which to extract a supportable adjustment that makes sense. However, I am appraising a home at a price point in which there are very limited similar comparables. In this case, I have a very small neighborhood (about 30 homes) of luxury homes. It seems like every comparable I have falls into each of the categories I mentioned above and my head is spinning on figuring out how to separate view from location. To make it more complicated, my subject does back to open space with mountain views, however, half of it is a very close hill in which you can't see anything over it, and the other half where you could actually see the mountains is mostly obstructed by tall trees along the fence line. If they cut down about 10 to 12 feet of off 6 or 7 pine and aspen trees, the view would be greatly enhanced, but that's not how it is as of the inspection date. In this case, I am inclined to leave the location as neutral/residential since they are all in similar neighborhoods and make the adjustments under view since much of the allure of backing to open space is the view of the open space itself. I would love to see other appraiser's thoughts about view Vs location and methods for determining appropriate adjustments for both. Thank you!

View is what you see that is either neutral, beneficial or adverse. The reasons for a view are many and varied. If it is a crappy view it may be either neutral or adverse. If you can "see" something that is appealing, beautiful, asthetic, or generally favorvable it may be beneficial.

Loacation can be any of the above based on factors other than the view. In a recent condo appraisal i just completed it is the middle of an urban area, 3 blocks from city hall. Traffice noise is awful. Traffic congestion is awful. however, shopping is plentiful. Transportation is great. Amenities such a the theater, places to dine, drink, frolic and have fun and numerous. But in my opinion over all it was adverse.

 

[J Grant]

Location and view are separate factors, why would would one one get mixed in with another for the adjustment?

Some views even of same natural beauty are superior than others, one house could have a limited mountain view nd th other an open mountain view...so just put the qualifier of mountain/ open or mountain/limited in the view description and adjust accordingly as long as you see the difference in market reaction of price.

 

[Michigan CG]

Land sales.

 

[BRCJR]

Land sales.

Some can't see the forest for the trees......

 

[pdaniel7]

Ok, let me try this a different way. Can I get a few people to briefly explain their methodologies for both location adjustments and for view adjustments? And how to separate location (open space) from view (mountain) when a property backs to open space with mountain views. I am asking so I can learn solid methodology to provide the most reliable appraisals I can. Not here for sarcasm or pointless comments. I appreciate any insight you can give.

 

[J Grant]

Ok, let me try this a different way. Can I get a few people to briefly explain their methodologies for both location adjustments and for view adjustments? And how to separate location (open space) from view (mountain) when a property backs to open space with mountain views. I am asking so I can learn solid methodology to provide the most reliable appraisals I can. Not here for sarcasm or pointless comments. I appreciate any insight you can give.

Location is NOT about open space vs mountain view!! LOCATION means a property's location within a subdivision or area . The site of a property backing to open space is still view.

I try whenever possible to use properties from same influence location or similar, if I must use one from a superior or inferior location ( subdivision or market area ) then the influence should be seen in price.

for View put the comps on the grid, make all the other adjustments to them except for view, see what is left over that is the adjustment ( called extraction or line item sensitivity analysis.) You can support the view adjustment by reviewing additional data, talking to RE agents , and comps with inferior/superior views could be seen in prices...if it is not seen in prices the market may not be returning a premium.

Each appraisal is different; I have not found a rote formula yet that applies to all

 

[J Grant]

Do you understand the difference between location and view? That is fundamental to the process.

 

[pdaniel7]

Do you understand the difference between location and view? That is fundamental to the process.

Thank you for your informative response on methodology. I do understand the difference, however, there is limited and somewhat contradictory market data for this particular neighborhood of which there are few competing homes outside of the subdivision.

 

[J Grant]

Sounds like if all your comps are in the same subdivisions, then the contradictory data must be about view or other issues. Talk to the RE agents who specialize in the subdivision for feedback , look at older sales in the subdivision and their prices/commensurate with their views etc.
If data is not clear enough for an adjustment you can make no adjustment among view variances, explain why, and reconcile per which properties are more close in features and quality to subject.

I want to add that sometimes if all comps are in subdivision and one is on a busy street I might adjust under location or view, as I said each appraisal is different but the methodology has to make sense and be consistent for that appraisal. ,