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Articles by January, 2017
Explaining Adjustments to Homeowners
by Administrator on Jan 5, 2017 • Homes • 1405 Views
Appraisers understand how they go about making adjustments to comparable sales for important differences that they have with a subject property. They know that when you are adjusting a comparable you pay attention to things like; quality of construction, condition, date of sale, financing, concessions, site size, site amenities, gross living area, bedrooms, baths, basement, garages, porches, patios, pool, flooring and remodeling. These are some of the obvious factors that may be adjusted for but there are other things like; casitas, gated access, views, community benefits, golf course use, homeowner association fees and SID / LID balances. Appraisal forms generally offer a standard set of adjustment factors but the list is a limited and at times it must be expanded on just to include all of the important differences. Homeowners ask me why the Koi Pond or the BBQ wasn't adjusted for. When you are analyzing a million-dollar home how much weight do you think a buyer gives to a
Market Value Adjustments After a Golf Course Failure
by Administrator on Jan 8, 2017 • Golf Course Appraisal • 1059 Views
When golf courses are constructed, often surrounding and adjoining residential development, it never occurs to most home buyers that 10 or 20 years later the golf course may financially fail. Buyers pay a premium for their golf course frontage, which is often why the golf course was constructed. The builder usually had no market study that indicated that the adjoining golf course could remain financially viable. The developer probably didn’t care, the cost of putting in the golf course was minor when compared to the profits from selling the “premium” golf frontage lots and homes.
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