Water Property Adjustments

[Bobby Bucks]

I’ve been getting a lot of sales and refis lately for water properties. Some are improved, some unimproved. Many of them are interior sites in gated communities which have water views, but are not water front. Anyone who does these has probably figured out that in many cases the water front properties are often easier to determine a site value for because there are more highly similar sales available. It’s those interior sites with the limited views that can sometimes be a bear to get a site value..................Water view, partial water view, partially obstructed water view, unobstructed water view. I’m also wondering what others base their adjustments on other than the obvious...I’m finding degree of view to be a bigger factor with newer construction because so many newer custom homes take advantage of a view from every room, even a bath. I’m doing one
now which has a fantastic water view from the Jacuzzi in the master bath. I occasionally go back up to 2 years or more on site sales. The other consideration I always have with those interior properties is how the view will be affected when those unimproved sites start filling up with 3 story homes. I’ve seen some subdivisions in which the ARC limits size of the waterfront properties so as to not totally obstruct the views of the interior sites. With all that rambling, I suppose I’m looking for is
more verbiage for extended comments and rationale for adjustments......and one request ....for all you paired sales double garage pukes with too much idle time.....go to the next post please.

 

[Pamela Crowley (Florida)]

Bobby,

You're one of the few that will get away with asking for advise while slapping 'em in the face!

:rofl:

I'm thinking about it....

 

[Richard Carlsen]

I think you are absolutely right in that water frontage is easier to calculate than water view. Given the fact that we have some inland lakes with frontage in the $4000 per front foot range and a couple in the $6000 to 9000 per front foot, there are enough sales of vacant sites to peg the value.

However, on the water view, just getting a glimpse of a lake in the winter can raise the value of a parcel. The good subs with views are protecting the owners future views by layout and restrictions. These site generally sell for more for this simple reason.

So how do you figure out which is a good site value comp? I use the agents comments and photos in the MLS system and my topo maps if necessary. I find that generally, the agents are aware that view sells vacant land. They are now bashful about talking about it.

The real thing that helps you know which are good site value comps however, is knowing your market. Where are the good sites and which are less desirable. Nothing beats a market-wise appraiser.

 

[Roger R. Patzold]

Bobby,

I am considered strict on defining "Water View" but here are my thoughts on the subject.

To be "Water View" it must have an unobstructed view of the water that can not be obstructed in the future. Intervening land must have restrictions against improvements or growth that could restrict the view.

If someone can build a house or other building on the intervening site or if nature can grow trees, etc that can intervene I don't consider it water view.

Around Lake Livingston in Texas I find water front lots that are owned by adjoining property owners who have their septic systems on the intervening site. This is a limited water view for the property across the street, as the water front property owner can not build on the intervening site because of the septic system. This would include aerobic septic systems which are treated water sprayed on the surface. The state of Texas has strict guidelines on how aerobic systems can be designed.

One other site I find at Lake Livingston is the subject property that includes the lot across the street which fronts on the water and is used for the field line of the septic system or the spray field for the aerobic system. I call these as "water view" and explain. Since the house does not sit on the water front lot I can't call it "water front".

I have also seen properties across the street from boat launches and their parking areas which I consider to have a water view limited by the HOA's ability to construciton something different on their site.

"Water view" should always have some explaination or clarification in the addendum.

Another "water view" area at Lake Livingston is some sites that back up to a greens area of the adjoining marina. Lots of clarification on these sites.

I run into a different classification of "Lake view" where the subject enjoys an elevation advantage that prevents obstruction by building or trees because of that elevation. Said building or trees may be currently present or possible in the future. Have to watch for possible second or third stories that could become a view problem. Some subdivision have streets several blocks away from the water and high enough to have an unobstructed view of a large portion of the lake.

I don't attribute any additonal value to a site that can have it's "view" limited by possible future construction or future tree growth. Unless it has "unrestricted water view" it only gets valued and described as an interior lot. Hopefully there are sales with similiar views.

If the realtor described the subject as "water view" I try to find similar homes where the listing realtor described that property as "water view". Not always successful.

Hope this has helped some.

rpatzold@aol.com

Please join me in a prayer for those who are going to have to spend the Christmas season away from Home, Family, and Loved ones.
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[Blue1]

The other consideration I always have with those interior properties is how the view will be affected when those unimproved sites start filling up with 3 story homes.

Did one in my area that had a fantastic Sacramento River view....used similar comps.....FAST FORWARD....1 year later......2 story built right next door.....no more river view..... Moral: No water FRONTAGE......Don't count on a view next year. :redface:

Anyhoo......

I'd choose comps with water views and adjust for stability of that view as well as quality. In my area....for instance....There may be a smashing view during the winter but none in the spring...(no leaves in the winter.....whoda thunk? )

Careful of MLS stuff....Had more than a couple in my area calling "waterfront" a home with a pool !!

 

[Tawfik Ahdab]

Careful of MLS stuff....Had more than a couple in my area calling "waterfront" a home with a pool !!

That's an instant classic!

I run into this vaulation problem all the time. I often have to use the extraction method to estimate the site value of a view property. The problem with that is that, even within the same subdivision, I get a relatively wide range of extracted land value. The fact is that my market is often not so precise as to yield a tight range of extracted site values. You can have a good ocean view, a filtered ocean view, a sliver of an ocean view, a distant ocean view, and a panoramic ocean view. That's not to mention lake and river views, which also abound in my western Oregon market area. With so much variety, the market tends to be imprecise in pricing, especially as such properties become scarcer due to being highly sought-after over decades.

 

[Mountain Man]

Views have a LOT to do with values in my area. Down in the valley, lots can be as cheap as 15-20K. Top of the mountain with 50 mile views, lots can start at 100K, and go up. I flip through MLS and read the agents comments, look at the photos, and check out the tax map to see where on the mountain it sits. But like Richard said, you have got to know the market and area, or do a lot of research and driving to determine if the sale is truly comparable.

The value of lake front lots here depends on the length of lake frontage. Recently, there was a change in the rules that you MUST have at least 100 feet to build a boat house. Less than 100 feet, you can only build a dock. In my market, with those rule changes, having less than 100 feet of lake frontage can cut a lot's value in half. But It's GA Power's lake.... and their rules.

 

[Thomas N. Morgan]

Bobby,

I share your view of paired sales.

Tom

 

[Jungle Boy]

Originally posted by Richard Carlsen@Dec 11 2003, 09:30 AM


The real thing that helps you know which are good site value comps however, is knowing your market. Where are the good sites and which are less desirable. Nothing beats a market-wise appraiser.

And one way to become one, if one is not yet familiar with the neigberhood, is to talk to real estate agents.
Notice the plural. Talk to many, and you'll know who is lying, and who is not.

 

[Bobby Bucks]

Thanks everyone, that’s what I was hoping for. Unless the property is waterfront and completely
unobstructed I call it limited, broken or partially obstructed. Filtered view?....haven't heard of that one. I like it. I’ve had several where a public
parking area made a water view possible......of course I always assume the worst.....the city might
someday sell that site. I suppose it’s best to comment on any small detail.
On the MLS subject, I’ve even seen “Lake View” to describe a 20’ x 40’ retention pond. I give
consideration to some MLS data from “trustworthy agents”...... .a select few I might add. one
must always bear in mind the old RE agent “puffing” trick
Some other things I do. Walk the vacant lots if possible.....if a comp is a vacant vacation home I
sneak on the deck and check out that view.
I’ve been using a checklist for these type properties. Today I added a few. Of course a boat slip
adjustment is another area in itself

elevation
Bulkhead in place or a permit
water front feet
water depth
tide tables (if applicable) always inspect on a lunar low tide if they claim it’s navigable and you
question it.
ACTUAL boat slip length, (not MLS), multiple slips, boathouse, bulkhead or dock? OR permits?
dredging permits?
Degree of view
time of year.....foliage
Of course many of these items can never be completely verified....one must do what one can with
the available data.