1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Choices and Limited Comps

Discussion in 'Commercial/Industrial Appraisals' started by Terrel L. Shields, Oct 27, 2011.

Thread Status:
Not open for further replies.
  1. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    244
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Got a green house slash nursery to appraise. One comp. Very good one though. We had a lot of greenhouse and nursery people when building was going great guns... now they are pretty much goners - Can't find another sale in the past 5 years and those were in far better times.

    So do you go with a one comp sales approach? go to timbuktu for another sale? Use somewhat dissimilar sales with similar building or size... it's a choice
     
  2. Ed Falkowski

    Ed Falkowski Senior Member

    2
    Jun 25, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Pennsylvania
    Is a green house/nursery the H&BU of the property?

    Are there any similar markets where there have been sales... regardless of how far away they are?

    Just throwing some ideas out there.
     
  3. Metamorphic

    Metamorphic Senior Member
    Gold Supporting Member

    41
    Mar 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Can you back up the number with income and cost?
     
  4. farmguy

    farmguy Member

    0
    Jun 27, 2007
    Professional Status:
    Banking/Mortgage Industry
    State:
    Texas
    I think Ed may be on right track.

    Terrel did the one good sale happen after everything hit the skids and will it suggest H&BU isn't a nursery. If so maybe you don't need nursery sales.
    Is this a big place or more a mom and pop kind of deal?
    If it is a big outfit then going to Timbuctu may make sense.
     
  5. Denis DeSaix

    Denis DeSaix Elite Member

    146
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    Sometimes we have one solid comp and a few not-so-good-but-I can-make-an-argument-with-them comps, so in those cases we use the good one, include the others, and in the end, rely on the good one anyway.

    In this case, it sounds like one good comp only and no others. So, if I could, I'd probably just use the one good one and narrate why.
     
  6. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    Make sure you fully investigate your one good comp.
     
  7. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    244
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    No problem with the one comp in particular. ... One nursery went under. Another moved off a very busy road to this site which is on a secondary highway but still a busy road. Their old location was probably about to break over to a different HBU...say a fast food joint, etc. They likely got as much for that property as they gave for an existing property with newer improvements.

    Cost is useful in that greenhouses can be relatively easy to price.
     
Thread Status:
Not open for further replies.

Share This Page