Indiana Housing and Community Development has released a non-exhaustive lists of issues found with last year’s market studies. The list is provided in order to help analysts when composing studies for this year. One general theme throughout is a lack of explanation behind particular conclusions – especially failing to provide how a particular fact will affect marketability. The following is a brief list of some of the other issues:
- Absorption rates should be within two years of the market study.
- Comparables had items like dishwashers or other amenities that were not in the subject property, with no explanation on how this lack of amenities would affect marketability
- Concentration of poverty is a fairly new requirement which must be addressed in a market study – many studies last year left this portion out.
- Failing to provide utility allowances
- Grocery stores within 1 mile of the property must have interior photos showing availability of fresh produce (new 2018 requirement)