Appraisal Question

What do you think about using a house on Sterling between Underhill and Washington as a comp.for a house on Park Place between Carlton and Vanderbilt. The appraiser adjusted the price of the sterling house down 25k because the park place location is less desirable because of the proximity to commercial establishments!? Is it just me or do other people think proximity to stores and trains is a good thing?

Is the Park Place home yours or do you intend to buy it? If the LTV is that tight, talk to your Loan Officer and have them talk to the appraiser to see if you can wiggle it a bit.

It's not just proximity to stores and trains, it's also the traffic of Flatbush, Vanderbilt and the people coming out of the subway at all hours. Generally speaking people prefer to live in areas that are more residential than commercial. Being a short walk away from stores and trains is good, being on top of them is bad.

This seems like a minor adjustment as a % of value if you are talking about a house and not an apt. I think it makes sense that people may pay slightly more for the quieter block, even if it is a few blocks farther to stores and trains.

Maybe it has something to do with zoning and/or Historic District Status?

Park Pl bet Carlton & Vanderbilt named as #21 on TimeOut NY list of best residential blocks (Oct 2006) in all of NYC. http://newyork.timeout.com/articles/features/4104/block-stars

In my experience, banks often hire appraisers who are unfamiliar with this area to value properties here - insane? Yes. Do they go with the lowest-priced firms, which may be based in Florida or something? Yes again.

It was a few years ago, but I had success getting a property re-appraised, bolstered by more relevant comps and politely hounding the loan officer. Check Property Shark for comps, as well as recent sales you may find printed in newspapers etc......