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Five Methods of Determining Proximity Damages

Five Methods of Determining Proximity Damages. Presented in Descending Order. 1. Matched Paired Sales. The perfect matched pair of the subject selling immediately before and after a widening project. Matching similar residences along the same highway with different set-backs.

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Five Methods of Determining Proximity Damages

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  1. Five Methods of Determining Proximity Damages Presented in Descending Order

  2. 1. Matched Paired Sales • The perfect matched pair of the subject selling immediately before and after a widening project. • Matching similar residences along the same highway with different set-backs.

  3. 2. Collect After Comps • After comps are sales that are forming the indicated bottom of the market of properties that are similar to the subject. • Depending of the degree of proximity, one can slide along the range of difference in value from the subject as appraised before and the bottom of the indicated market. • Advantage; the method will reflect current market and location conditions.

  4. 3. Compare to Any Other Structure • Similar to method 2 but with a lesser degree of comparability. • One may need to compare bricks to frame and new to older homes. • Needs a greater degree of analysis and adjustment to justify.

  5. 4. Document the Market Perception • Almost an if all else fails option. • Get the opinion of realtors, developers and other appraisers as to how the proximity will affect your subject property. • Disadvantage; dealing with perceptions rather than market evidence.

  6. 5. Cost to Move the Residence. • Works well with mobile homes. • Useful in extreme proximity situations where one is on the verge of acquiring the residence. • Disadvantage; often not a physically feasible solution.

  7. Conclusion • Proximity damages are relevant to residential properties. • Non-residential properties are usually damages by cost-to-cure, capitalized rent loss or change to a different highest and best use.

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