Weight of view on appraisal value?

[JTip]

H&BU analysis of the site will determine if the lot will have an "engineered view" by allowing a 20 story condo or deed restriction to 15' one story single family max build height. This view value will be recognized in the lot value and the improvement should enjoy what the H&BU result/view shows. Can't enjoy the view unless the land allows it.

 

[alebrewer]

and the improvement should enjoy what the H&BU result/view shows.

Therein is the rub...

 

[JTip]

Unless its an interim use, what improvement should be there will be there.

And the lot value will reflect the H&BU value with the 'engineered view' even if under improved with an interim use.

 

[alebrewer]

Under the assumption that all market participants construct the ideal improvement - I'd agree with you.

 

[CGinMN]

Call it a design or quality adjustment if it makes it easier for you.

 

[Terrel L. Shields]

total market value of the view lot + improvements is hardly ever equal to the sum of the parts.

Isn't that the very premise of the cost approach? Land plus depreciated improvements.

 

[Tom D]

It seems to be terrel against the group. The group being everyone. This thread is far above the head of any person reading it. I prefer the simple minded approach. If it can be a hot button, it can be an adjustment.

Sorry terrel, i go with the group. The villagers are coming with torches, run terrel run.

 

[Terrel L. Shields]

run terrel run.

They may have torches but do they have a textbook? View is an intangible - change my mind. It is also an attribute to something tangible - land. So, if you don't separate the land value from the view, you can double dip the adjustment. "Oh, this expensive lot has a view potential, so we'll pay a premium and then we'll add another premium for the view..."

 

[J Grant]

They may have torches but do they have a textbook? View is an intangible - change my mind. It is also an attribute to something tangible - land. So, if you don't separate the land value from the view, you can double dip the adjustment. "Oh, this expensive lot has a view potential, so we'll pay a premium and then we'll add another premium for the view..."

That would be stupid to double-dip the adjustment.

I ask for land for its size or another attribute, and on the view line, I adjust for view.

The view is attributed to the tangible land and is baked into the land value. We get it . It applies for a land appraisal and on the cost approach.

NEXT, the assignment is an MV for a subject improvement on the lot, a condo, a home on a land lease, etc. At that point, the view affects the total price/value. That is how buyers see it, that is how the market sees it and pays for it.

 

[shrubberyvaluation]

TLDR, it is going to depend on the market and current market conditions.