Waterfront Property

[Avery Valentine]

Hi, I am doing my first waterfront property and I am lost on what value to give for the water. The property is not right ON the water, but has a neighbor between it and the water, with a private easement going down to the water and in metroscan as having lot frontage (they have beach rights).

I tried using the extraction method and came up with $5,232. per foot of water/lot frontage. I would agree with this IF the property was right on the water. Although the water is easy to get to, it seems the value is more in the beach rights/easement than per foot of lot frontage but my supervisor wants me to give them value per foot.

It is also high or medium bank. I am not sure what high is exactly, but it is definately not low bank. Is there a way to find bank in metroscan?

I also have a problem with the deck. It has no railing. I am going to mention this in the appriasal (have to talk to my supervisor about how) BUT I am wondering what people do in situations like this? For example, if you come to a property and there is a high deck w/no railing, what do you do? Do you leave? Do you just talk to the homeowner first and let them know what can happen (loan not go through, etc).

I work in an office of independent appraisers, and we never leave a property, but I am wondering if this wouldn't be a better thing to do (after talking/discussing it w/homeowner).

Thanks for any help you can give me -

A.

 

[CANative]

Discuss the lack of the deck railing. Describe the height of the fall if you can (about 10 feet, about 100 fee, etc.)

Comment that installation of a railing is strongly recommended

or

make a requirment that a railing be installed if you're worried enough about it.

As to the waterfront, it's kind of a matter of knowing your market. In my market if it's not waterfront it's not waterfront. Find comparables that lack direct frontage but have similar access rights. Compare those sales to sales with direct water frontage. The view is important too.

This isn't a simple job of just finding 3 comps and making some adjustments. You need to have experience in this property type.

 

[john snyder]

Greg is quite right and I would add be careful with this access - in Michigan realtors are notorious at not spelling out is the access just for that house? is it with or without dock or mooring rights.

Many people here in MI, think that because there is a public access down the street that makes it "access" - it aint' anymore private access then for any one else in the entire state.


john

 

[Phil Chamberlin]

For either Lake Washington or Lake Sammamish that private easement really only has substantial value if you can either use it to launch your boat or can place a dock there.

 

[Tony V]

Waterfront is waterfront....Waterview is waterview....look for sales of similar view with similar amentities.....

as for talking to the homeowner about the railing.....Who is the client????

Definatly mention it in the report with a photo...CYA....
Good Luck from the other coast....

 

[hastalavista]

Avery-

If you are using the new form, would you consider the lack of a railing affecting the “livability” of the property? I would, if the fall could hurt someone (which would be more than 3 or 4 feet, in my book).

In this case, I would check “yes” to that box, and list the issue. If the UW doesn’t think it’s a big deal- he/she can sign off on it.

Estimating the distance is a good idea, but I once was chewed out by a homeowner for over-estimating the fall distance one time (I think I said it was about 25 feet; he said it measured about 18 feet): Now, I say something like “appears 15-20+/- feet. Also, the best evidence is your photo of the deck area and where one would “land” if one “fell”.

 

[The Warrior Monk]

Properties like this can be a real pain. Many times they're worth significantly more than inland properties but significantly less than waterfront. Finding comps can be really tough. Definite complex assignment.

 

[Avery Valentine]

Thanks everyone -

My supervisor came in and worked with me on this today. I think with his input and this boards, I at least know what direction to go in.

Thanks for the help.

Now, I've come across something else strange, but it should probably be a new topic ...