Why do appraisers use houses that at not similar to another home as to where it is located in a community? Example below....

Asked by Jeeper270, Fernandina Beach, FL Tue Apr 23, 2013

a home is a gated community has H.O.A fees, CCD fees, min. spending cost at the club, etc. A house exactly like one that does not have those associated fees can cost as much as $1,000. a month is our area. on a yearly basis, the gated community home buyer will be paying 250,000 more for the same house in a mortgage. Thus, a home without those fees should have an adjusted value upwards instead of being penalized. For example,. the cost of a 400K home with fees of 1,000.monthly would be the same as a buyer who purchases a 650K . Yet , when an appraisal is done, the home without the additional $1,000 payments per month is given a reduction in value when used as a comparable.

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Andrea Hatton, Agent, Fernandina Beach, FL
Tue Apr 23, 2013
Here's my email address: Andrea.hatton@yahoo.com
I'll tell you everything I know.
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Jeeper270, Home Owner, Fernandina Beach, FL
Tue Apr 23, 2013
Ok-Thank you. Yes, Amelia National. However, I talked to a couple of residents and your estimate is low. One guy said 10K a year and the other, who was a golf member, said 12K a year. And those costs do not include the cost of running sprinklers vrs. using a well. One couple who just bought in there had a water bill of 700 a month for the first couple of months. I believe the CCD fees and the HOA fees alone are close to $600 a month. But, that still does not explain why a reductions should be made for NOT living in a gated community or, an increase should be given for living in a gated community.
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Below is a direct quote from a former resident:

My recollection is that there was a monthly CDD fee of something like $500 and there was also what I considered to be a very hefty monthly HOA fee (around $275 maybe?).
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Andrea Hatton, Agent, Fernandina Beach, FL
Tue Apr 23, 2013
The homes are in two different communities and should not be used as comparables unless there are no comparables in the subject's neighborhood. Value is in the eye of the beholder when it comes to amenities of a neighborhood. Some will pay more some will pay less. Thus, the two neighborhoods are not easily compared together. I am assuming you are talking about Amelia National where the average fees are $600 per month. Please message me if you want me to further explain. My partner and I have sold over ten homes in North Hampton and are very well versed on both markets.
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