In a San Diego Real Estate appraisal report the neighborhood boundaries are used to find similar comparables sales. Many clients find this definition vague and can be confused as to what truly defines the boundaries of a San Diego neighborhood. There are a few features that help determine the boundaries such as physical features, natural barriers, legal boundaries and complexes.
Two of the lenders guidelines for finding comparables sales are that they must have sold within the last 6 months and be within a one mile radius of the subject property. The boundaries of a neighborhood do not have to be within the one mile radius, it all depends on the neighborhood.
Physical features include streets, freeways and railroads. Natural barriers are things such as rivers, lakes and reservoirs. And legal boundaries are city or county lines. In some cases the subject property is located in a complex which creates its own boundaries, this is most common for condominiums. Physical features, legal boundaries and natural barriers are common and if possible the comparables for the appraisal are selected from the same side of the barrier as the subject is on. For example if the subject property is east of the 805 Freeway in San Diego County then the appraiser will select comparable sales that are also east of the 805 Freeway.
Although the appraisers first choice for a comparable sale is within the subject neighborhood boundaries, often times there are no recent similar properties within those boundaries and the appraiser selects comparables outside of the desired boundaries. If this is the case there will be a statement in the report to notify the intended user that some comparables were selected from outside the desired boundaries.
The appraiser’s job is to provide the true market value of the property by finding comparable sales that can determine and support the value, if there are no recent similar comparable sales the appraiser will need to select comparables that are slightly older or further away form the subject than desired. Depending on the neighborhood this can be common such as in rural neighborhoods, however it can also occur in a suburban neighborhood, it depends on the market.
Please contact our office with any questions you may have or to schedule your appraisal appointment at 760-741-7699, brandlinappraisal@yahoo.com or use our contact page on our website.
Brandlin Appraisals Inc. specialize in helping people who need appraisals for estate purposes, divorce, date of death, bankruptcy, FSBO’s and more throughout San Diego county. For more information please contact us at (760)741-7699, or visit our website at Brandlinappraisals.com, or email us at admin@brandlinappraisals.com
Mike Brandlin
San Diego, CA // Real Estate Appraiser
www.brandlinappraisals.com
(760) 741-7699
San Diego Real Estate Appraisal Services For:
* Divorce Appraisals / Marriage Dissolution
* Bankruptcy Appraisals
* Bail Bonds Appraisals
* Estate / Date of Death / Retrospective Appraisals
* Financial Planning & Trusts
* PMI Removal Appraisals
* Pre-Foreclosure & Short Sales
* Tax Assessment Appeals
* Pre-Listing, Pre-Purchase, FSBO’s
* Probate Appraisals
