WATER FRONT VERSUS WATER VIEW

[gwente]

I recently had a 31 acre sound front property appraised for a VA loan. See photo in the attached PDF document. The property line ends at the waterline.

The appraiser determined that the property was not water front but water view. This determination valued the property at $375K less than the advertised price of the property. I'm sure the water view versus water front determination resulted in the large variance between the appraised value and the asking price.

Is there an appraisal industry definition of water front and/or criteria that is used to determine water view versus water front?

Thanks in advance for your time and feedback!

 

[gregb]

Does the property line run to the ocean?

 

[Elliott]

Appraisers try to compare apple with apples, so there are Water Frontage Views and Water Views and there are Limited Water Views. Similarly one can substitute Lake, River, or Ocean for "Water."
I use a percentage of views, 5% to 100% (so a 180 degree view would be 100%. But again, as long as you can find apples to apples, you minimize estimating adjustments of the differences in value contribution.

 

[JTip]

I would pay more to eat a kobe steak than to simply smell it.

 

[alebrewer]

If the property line truly goes to the 'water's edge', then it should be waterfront. Waterview is generally reserved for properties that have views of a body of water, but have other properties between them and the water.

 

[gwente]

Does the property line run to the ocean?

View attachment 44902

Yes. Property line runs to the high tide mark at the water. There are not other properties or lots between the house and the water. Thanks!

 

[glenn walker]

I would say Water View and not Water Front-a True water front is close to the water and has a 100% unobstructed view so what is the difference in value ? Its rare to get any model matches in this situation and Views are very subjective. Think in terms of how buyer action- Take the view and location as a package and rather than make a separate view adjustment consider making a location adjustment which includes the view and that way you are not making duplicate adjustments. In my area the properties that get a premium for water front views are also on the best lots and site elevations.

A house on a bluff or higher elevation with a clear view may get more money then one right on the water. Based on the photo this property has a telescope view through a narrow range and its site elevation appears to be fairly low to the ground. Another factor is which way the house faces ? I have seen some properties where the view was blinded by the sun for 3 to 4 hours a day and th emorning fog 6 months out of the year and owners find out real fast the big Premium they paid was a lot of hype. Good luck-not an-easy one

 

[gregb]

Local example of water front, on a point with expansive water and beach view greater than 180 degrees.

 

[Mark K]

Not living in an area with any real water to speak of....how far from the water is 'view' and 'front'? The subject house appears to be 500' +/- from the water's edge, maybe less.

It almost seems like the lot is waterfront but the house is water view, does that make sense?

 

[alebrewer]

Not living in an area with any real water to speak of....how far from the water is 'view' and 'front'? The subject house appears to be 500' +/- from the water's edge, maybe less.

It almost seems like the lot is waterfront but the house is water view, does that make sense?

agreed. If the lot is waterfront, though, then the property is considered waterfront. If, however, the 'view' is somewhat obstructed, then when compared to other 'waterfront' properties, there may or may not be a market reaction (adjustment) to those properties that have more panoramic views of the water...