How much is a neighborhood name worth?
Excerpt: Despite some anecdotal examples, there’s little statistical evidence supporting the notion that a neighborhood’s brand or name contributes to a higher sales volume or a premium on price, according to Jonathan Miller, chief executive of the appraisal firm Miller Samuel.
“You’ll see buildings trying to hook into adjacent, better-known neighborhoods as a marketing ploy, but we don’t see that translate into a premium or more sales for doing that,” Mr. Miller said.
To read more, click here
My comment: Some interesting stories. I’m not sure if “renaming” works, but I do know that in some older established neighborhoods in the Bay Area, including my city, the name does make a difference in value.
A $760,000 Parking Space ($5,000 per sq.ft.)
By Jonathan Miller
Excerpt: In 2007, I analyzed Manhattan parking spaces that made page one of the NY Times (oh, and my wife broke her leg that day). The takeaway was that parking spaces sold for about the same price per square foot as a typical apartment in the same building. Typical parking spaces run about 150 square feet in size.
This US $760,000 Hong Kong parking space sale (a flip) was a little more than $5,000 per square foot in a luxury project. The average residential sale is US$3,182 per square foot. Based on what we see for Hong Kong housing prices, that price really doesn’t sound so crazy.
In the greater reality, it sounds absolutely nuts. Without the context of an HK$100M condo nearby…
Scroll down to Appraiserville for a long story about a VA appraisal “gone bad” plus lots more good stuff at:
Surf’s Up! America’s Most Affordable Beach Towns, 2018 Edition
Excerpts: These aren’t the country’s best known and rarified ocean towns (sorry, Hamptons and Malibu!), but each one has a great beach and a cool and distinct vibe, from ruminative to rowdy, serene to (sorta) swanky.
Here are a few:
1. Gulfport, MS
Median home list price: $184,100
2. Jacksonville, NC
Median home list price: $184,600
9. Coos Bay, OR
Median home list price: $274,200
Lots more detail at:
The rage of Airbnb rentals (and stuff to keep in mind about value)
By Ryan Lundquist
Excerpts: The owner has a cash cow. Her second unit is bringing in $3,300 per month as an Airbnb rental, and it’s paying her mortgage. Since these types of rentals are all the rage right now, let’s talk about some important details to keep in mind from a value perspective. This isn’t meant to be exhaustive, but I wanted to share some things on my mind. I’d love to hear your take in the comments.
1) Airbnb rent vs. market rent
2) Lenders and market rent
3) Investors & seller expectations
4) The fine print and a 12% tax
Click here to read the details, plus the appraiser comments:
My comment: This stuff gives me a headache ;> These seem to be everywhere now, especially room rentals. The Local Politics can be a mess. I look at the income as a business. Very different than renting by the month or year (at much lower daily rates), unless it is in a popular vacation rental market.
The Magical Appraiser Wand
By George Dell
Excerpt: Can you just give me some magical software which will calculate my adjustments?
I get asked questions like this often. Can you just show me how to do a graph a client wants? Can you just give me your class stuff so I don’t have to come all that way? So often, the question degrades into something like “Why does the regression software give stupid answers?” I pushed the magic button!
People do not like the answer. You’re paid to do an analysis, not wave a magic wand, or push a magical appraisal button. We have another name for that, it’s called an AVM. In addition to a point value prediction, AVMs can be tested for reliability. This is called the FSD (Forecast Standard Deviation). The AVM. It gets results. It’s fast. It’s cheap. And it provides a measure of reliability – the FSD.
Why would a client want something slower and more expensive with no measure of reliability? Why hire a pesky appraiser?
Click here for the answer!!
The Oldest Living Things in the World
Fifteen places to find some of the most ancient life on Earth.
Just For Fun ;>
Corelogic taking over? Lots of data, AMCs, MLS, education…
8 Bizarre Bathrooms from Around the World
“From pop-up toilets in city streets to a bathroom surrounded entirely by an aquarium, these public and private bathrooms are beyond bizarre-and you need to see them!”
Take a break from appraising and check these out. Definitely Weird!!
Recent acquisitions of appraisal and title companies
Another great commentary from Dave Towne. Thanks again, Dave!!
From the article in Housingwire.com:
First American Mortgage Solutions, a subsidiary of First American Financial Corporation, acquired Forsythe Appraisals, supplementing its existing valuation capabilities.
Forsythe Appraisals is one of the largest independent residential appraisal company in the United States and offers real estate valuation solutions with nationwide coverage.
Under the acquisition, Forsythe’s management team, including President and CEO John Forsythe, Senior Director of Customer Development Tim Forsythe and Chief Appraiser Alan Hummel, will continue to lead those operations.
Man moves to San Francisco, pays $400 a month to sleep in wooden box in friends’ living room
Excerpts: With the median rent for a one-bedroom apartment at $3,670 a month, the city’s housing crisis has pushed frugal renters to the edge of their comfort limits.
From tents to trucks, the next logical step in San Francisco has taken shape – in the form of a literal box.
Very interesting!! Check out the comments, video, photos, and the rest of the article at:
My comment: I live 10 miles from San Francisco. Rents in my city are well below San Francisco’s, but have increased 50% over the past 3 years. I don’t know anyone living in a box, but I do have friends who left the state to find affordable housing. Many others are worried that their rents will go way up any day. I am very glad I am an owner, not a renter. San Francisco has strict rent controls, but I don’t know if it applies to boxes… I gotta increase the rents on my apartments!! Greedy (or Evil) landlord ;>
College degree requirement misguided
By David Brauner
Excerpt: The college degree requirement seems more like a forced attempt at elevating the status of the profession by closing the club, and that strikes me as elitist. Not everyone has the opportunity, resources or aptitude to attend and/or flourish in college…
The requirement is even more dubious when you consider that a degree in any subject passes muster for becoming a Certified Appraiser, no matter how unrelated (think French Literature for instance), while someone with the skills to flourish in this business would be shut out for all intents and purposes without a degree.