OCTOBER 2011

PROPERTY VALUES AFFECTED BY NEIGHBORS

An article, written by Brian O’Connell, for the online publication MainStreet, listed seven categories of businesses or individuals that tend to devalue nearby property when they are in a neighborhood. Those types of “bad” neighbors are: Power Plants: A recent study, published by the University of California at Berkeley, concluded that values of homes within two miles of a power plant tend to be decreased from 4% to 7% because of its location in the neighborhood. Landfills: The assessor’s office of Pima County, Ariz., recently conducted a study that concluded that homes in subdivisions located near landfills tended to be valued at 6% to 10% below homes in otherwise similar subdivisions with no landfills in the area. Sex offenders: “The presence of a registered sex offender living within one-tenth of a mile reduces home values by about 9%,” reads a recent study on the subject, published by Longwood University in Farmville, Va. “These same homes take as much as 10% longer to sell than homes not located near registered sex offenders.” Delinquent bill payers: This is especially true in attached-housing communities where a high percentage of homeowners are delinquent on their maintenance fees and/or mortgages. Foreclosed homes: This tends to be the biggest factor in driving down home values. Lackluster landscaping: Many studies have shown that a poorly maintained yard tends to detract from the value of homes in its vicinity. Closed schools: The National Association of Realtors maintains that three-fourths of potential home buyers said that it is important for them to have a school located nearby.

ELLIOTT® WELCOMES FIVE NEW PROFESSIONALS  TO ITS CLIENT SERVICES DEPARTMENT

As the firm expands and diversifies the business that it conducts nationally, the client services department of ELLIOTT® & Company Appraisers welcomes five client service specialists. Two of the new specialists, Glenn Gibbs and Mike McLauchlin are certified appraisers, while Melissa Yokeley is a paralegal and Kathy Kimble and Tricia Lowery have extensive real estate experience in the fields that enable them to be excellent in their new positions. “Quality employees have enabled us to grow our company like we have,” said ELLIOTT® President Charlie Elliott. “Just because we are expanding, doesn’t mean we have any intention of sacrificing quality in order to advance in quantity.”

PARKING SPACES ARE GAINING VALUE AS REAL ESTATE One interesting phenomenon in real estate valuation is the increased value of parking spaces – especially those in densely populated areas. An article published by MSN real estate noted that, in many cases, condos and town houses are losing value, but the value of their corresponding parking spaces are dramatically increasing. The article, whose author is identified as Teresa, reported that a study showed parking costs a monthly average of $533 in Manhattan, $438 in Boston, $375 in San Francisco, and $304 in Philadelphia. It also noted that it’s not unusual to find only one or two parking spaces being provided for condos that have price tags in the seven-figure range.

ELLIOTT® REPORTS PROACTIVITY ON AMC REGISTRATION

As an appraisal management company (AMC), ELLIOTT® is proactive in registering in all states that have AMC registration laws. ELLIOTT® further maintains records of the rules mandated by each state as part of its regulatory compliance policy. Listed herein is a summary of the states we are registered in. It includes states in which our registration is pending. As the situations develop, more current information on this activity can be retrieved on our website as it is updated.

ASK MARTITIA

QUESTION:  Can an appraiser provide samples of his or her work to prospective clients, as long as they remove all confidential information from the report?

MARTITIA:  Yes, however, the appraiser must redact all of the confidential information from the report before he or she provides it as a sample, or obtain authorization from the client.

Martitia Mortimer, Elliott's executive vice president, answers appraisal questions on a regular basis in Elliott Evaluation News.

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QUOTES  

“Things turn out best for people who make the best of the way things turn out.” – John Wooden

“Assumptions allow the best in life to pass you by.” – John Sales

“Autumn is the mellower season, and what we lose in flowers, we more than gain in fruits.”
                                                                                                                           – Samuel Butler

“A habit cannot be tossed out the window; it must be coaxed downstairs a step at a time.” – Mark Twain

“A funeral is a pageant whereby we attest our respect for the dead by enriching the undertaker.” – Ambrose Bierce

“It is not the function of our government to keep the citizen from falling into error; it is the function of the citizen to keep the government from falling into error.” – Robert Jackson

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Newsletter Editor: kevin@elliottco.com
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