Where Do You Think "geographic Competency" Begins And Ends?

[George Hatch]

Multiple choice poll. Check all that apply, and I'm leaving the "allow voters to change their votes" box checked so if you change your mind you might be able to change your vote.

This is a question about competency, not about licensing; so for the purposes of discussion please disregard all licensing and liability issues. Those are legitimate concerns, but they're also a separate concept and merit their own threads.

Other assumptions that are necessary to ensure we're working off the same playing field include:

- assume the assignment in question involves an SFR that's typical for its community
- assume you have access to the same data sources any local appraiser would have access to
- assume you have the technical competency to appraise that property type if it was located in your own back yard.
- assume your SOW does not involve having to move to that location


We're not referring to ALL property types and amenities an appraiser might run into, just the ones that most all of us already know how to do. Think typical SFR, not some uber custom on a lakefront or the morphodite trouse that Bobby Bucks lives in.

 

[Meandering]

Especially with SFR, if you don't know who the major employers are and if, or which ones are laying off, and, what new commercial/industrial projects are in the planning and development stages that would impact jobs, draw more people to the area, chase people away from the area, you are not competent, even if you live in the neighborhood.

The better question would have been, what do you do to increase your competency in the neighborhoods you work, or want to work in.

.

 

[Artemis Fowl]

I picked "regardless" because I am going to be making contact with Realtors and other parties to VERIFY that I have a clue WTF I need to be considering in that market. Hopefully they don't all tell the same lies. Might be harder to check that box if I just skipped the verification process as a matter of course.

Nice segue Marion...we were typing these at the same time

 

[George Hatch]

To reiterate, the question is what you think you're *capable* of doing. It isn't what you think other appraisers would normally do.

I would also like to reiterate that you should check each box on the poll that applies, not just the one you think you top out at. The results should look like an inverted pyramid with everyone on the bottom of the list checking all the boxes whilst others stop short of the bottom.

 

[Meandering]

Read the local newspapers. If the property is in a PUD, google the PUD name along with the local newspapers, that should show any "known" neighborhood issues, like the HOA being sued or the HOA closing amenities, Any newly found toxins issues should have made the news, blah, blah. Depending on the price point in the neighborhood, access to public transportation might be a concern, but the appraiser should definitely know if the bus stops there.

If your state congressman/senator or other elected official lives in the neighborhood, that also has high appeal, is a selling point, and something that's very hard to find out unless you know people in those neighborhoods, or a local salesperson decides to tell you.

Pending tax issues should be known, not just zoning changes, because increased taxes can knock some "qualified" buyers out of the "affordability" category if the taxes go up x% within a few months of purchase.

I always like to go over the economic census and get a feel for what percentage of the working population are tax makers, as opposed to tax takers (gov employees, police, medical, teachers, military) When the community is mostly reliant upon jobs funded by government, or subsidized by government (medical), the warning bells should be going off, that such an economy and the property values could destabilize should there be a budget impasse or gov reduction, or that the tax makers are leaving and only the tax takers are remaining. We had an issue with the state wanting to close a jail and 3/4 of the local population worked at the jail. All kinds of political wrangling and gnashing of teeth to get the state to keep the jail open so that an entire community did not go ghost town


All impact value and that knowledge is part of the basis for geo-competency, along with how local properties are advertised and sold, not just through the MLS and Zillow.

.

 

[Meandering]

I am capable of figuring out a typical SFR property almost regardless of where it is.

Anyone can "figure it out" if they have enough time to get up to speed on all those issues that are impacting the value, and may impact the "anticipated future benefits". But I'd say, no one can "figure it out" in 24 hours or less if they did not already have the Geo-competency.

.

 

[Tom4value]

Theoretically, I can appraise anywhere but I am only licensed in MA. As you go down the list, the time and work to budget goes up. Therefore, I stopped at region due to money, time and comfort level.

 

[George Hatch]

Theoretically, I can appraise anywhere but I am only licensed in MA. As you go down the list, the time and work to budget goes up. Therefore, I stopped at region due to money, time and comfort level.

As I said above, please disregard licensing and liability issues in your response. The question is limited to what you think you are capable of doing.

 

[George Hatch]

I am capable of figuring out a typical SFR property almost regardless of where it is.

Anyone can "figure it out" if they have enough time to get up to speed on all those issues that are impacting the value, and may impact the "anticipated future benefits". But I'd say, no one can "figure it out" in 24 hours or less if they did not already have the Geo-competency.

.

I didn't include a limitation in time or costs among the assumptions. I'm only asking what you think you're capable of.

 

[Meandering]

I didn't include a limitation in time or costs among the assumptions.

And I could fly to the moon too, if I did not have the billion dollar fee limitation. Probably could be a rocket scientist too, if I was magically supported for the next decade and could attend college full time for free.

There are lots of things people can do, when there are no limits.

Unfortunately, only unicorns live that way.

.