Well and Septic BPO adjustment?

[Bburg77]

All else being equal, what kind of adjustment would you make for a property on well and septic versus one on city water and sewer? Thanks.

Mike Schmidt
KELLER WILLIAMS Realty, Indianapolis

 

[Pamela Crowley (Florida)]

This is what Appraisal classes teach. Maybe you can find a legitimate appraisal course in your local area.

 

[Stone]

This is what Appraisal classes teach. Maybe you can find a legitimate appraisal course in your local area.

Or a legitimate appraiser.

If this is a serious question, here is one in return: Why would appraisers help brokers take their assignments? I'm fairly shocked that someone would come to an appraisal forum and ask for help in taking their business.

 

[PropertyEconomics]

All else being equal, what kind of adjustment would you make for a property on well and septic versus one on city water and sewer? Thanks.

Mike Schmidt
KELLER WILLIAMS Realty, Indianapolis

Hey Mr Schmidt .. welcome to the forum.
In order to answer your question one would have to know a great deal about your market and what the reaction to public utilities vs private utilities would be. Not having the data it is simply impossible to answer your question. There are no set rules, there is no magic book of adjustments, and only analysis of sales where the differences are those of the utilities can provide an adequate adjustment number.
I do apologize that this is most probably not the answer you were looking for, however, as a Realtor Im sure you understand and respect the need for localization of the anlaysis. It is a battle that appraisers fight every day .. and essentially the basis for the need of all of the education we are required to take in order to become certified. The ethics that govern us were written well knowing that the answers are not easy and we are not allowed to not be credible in our analysis or answers.
Best of luck to you.

 

[Randolph Kinney]

All else being equal, what kind of adjustment would you make for a property on well and septic versus one on city water and sewer? Thanks.

Mike Schmidt
KELLER WILLIAMS Realty, Indianapolis

One way to make an educated guess would be gather similar comparable properties on wells and septic in the neighborhood. Gather similar comparable properties on public sewer and water in the same neighborhood. Average the two groups, separately. Subtract the two averages. If the result is zero (or close to it), then there is little market reaction.

Also verify from the local authority if new construction has to connect to public sewer and water and make sure the existing well and septic properties are grandfather if zoning now calls for public utilities.

 

[Bburg77]

Or a legitimate appraiser.

If this is a serious question, here is one in return: Why would appraisers help brokers take their assignments? I'm fairly shocked that someone would come to an appraisal forum and ask for help in taking their business.

Gee, it's nice that at least two out of the first four answers didn't immediately try to bash (thanks PropertyEconomics and Randolph). I was a licensed residential appraiser from 1990 - 1997 in Indiana. Just a simple question since we list a lot of REO properties and I haven't been in the appraisal realm for many years. Complain to Fannie Mae. I'm not taking anyone's business. Grow some skin.

 

[Ariba]

One way to make an educated guess would be gather similar comparable properties on wells and septic in the neighborhood. Gather similar comparable properties on public sewer and water in the same neighborhood. Average the two groups, separately. Subtract the two averages. If the result is zero (or close to it), then there is little market reaction.

Also verify from the local authority if new construction has to connect to public sewer and water and make sure the existing well and septic properties are grandfather if zoning now calls for public utilities.

Sure, and he is going to do all that for a fee of $45 per BPO!

I'm not taking anyone's business.

Says who? m2:

 

[Randolph Kinney]

It seems appraisers blame Realtors for poaching what they believe is something that falls to appraisers as their domain.

Appraisers don't seem to connect that problem with the clients that order services. It is the lenders or government agencies that are doing the ordering.

 

[PropertyEconomics]

Sure, and he is going to do all that for a fee of $45 per BPO!



Says who? m2:

Quite frankly Ron ... a Realtor doing a BPO for $45 or $50 is not taking any business from me but may in fact be stealing work from an appraiser that would be willing to do the complete appraisal report for about $150 bucks. That being the case, I hope Realtors do lots of BPOs and drive those bottom feeder appraisers out of the business. Less appraisers mean higher demand and higher demand means higher fees.
I applaude the departure of bottom feeding number hitters .. its about time.

 

[Randolph Kinney]

Sure, and he is going to do all that for a fee of $45 per BPO!

Originally Posted by Bburg77
I'm not taking anyone's business.

Says who? m2:

Says me. Lenders hire. Put the blame where it belongs.