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Market Analysis - Need Help

Discussion in 'General Appraisal Discussion' started by David R. Stevenson, Dec 25, 2004.

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  1. David R. Stevenson

    David R. Stevenson Elite Member

    0
    Dec 6, 2003
    Professional Status:
    General Public
    State:
    Tennessee
    Gainesville, FL – 8 lot subdivision on 1 acre lots – all lots sold and closed for $165,000 to $175,000 each within the past 2 months. (Minimum house size 3,000 sf) – superior location.

    1 acre tracts on the SW side of Gainesville sell for about $40,000 per lot. – (1,500 to 2,200 sf) – inferior location, inferior site

    Quite a disparity:

    I have a lot I am appraising that is 2.5 acres in size with a 40 year old house – in bad shape. Excellent location. Surrounded by $800,000 to $2 Million Dollar homes. The subject street has immaculate homes about 5 in total – all 2,000 + sf. –all homes were built 25 to 35 years ago. My subject is the oldest home.

    A lot just sold in a planned development – the last lot less than ½ a mile from the subject for $125,000 - 1.78 acres.

    There is a listing of an old house with 5 acres near the subject with an asking price of $257,000.

    I have a comp of a 7 year old home that sold on 2.5 acres for $267,000 same size as subject or slightly larger in a similar location.

    What I am thinking is that my subject lot may be worth $200,000. Am I crazy?
     
  2. Tina

    Tina Senior Member

    0
    May 31, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Where does abstraction take you???

    I'd look at that, it would lend support to your thinking.........

    (I printed the question.....makes for good discussion while preparing the Holiday feast)

    :santa:

    TB
     
  3. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    Without seeing the house etc. it almost sounds like a knock-down to me. Comes close to being a form of gentrification. Out with the old smaller and in with the new bigger. With that much value in the land, your most accurate methodology may be doing a land form with contributory value of the improvements.

    Hard to get into appraising with the smell of turkey wafting in from the kitchen.
     
  4. David R. Stevenson

    David R. Stevenson Elite Member

    0
    Dec 6, 2003
    Professional Status:
    General Public
    State:
    Tennessee
    Abstraction does not work very well when you have a shortage of land (close in to

    town).

    I am trying to determine what someone would have to pay for a vcant piece of

    land.

    Abstraction suggest much smaller land value ......

    You can not find parcels of land for sale or that have sold (close in).

    What I think I am seeing is that the people have to pay about $50,000 to $100,000

    per acre with whatever is on the property.
     
  5. David R. Stevenson

    David R. Stevenson Elite Member

    0
    Dec 6, 2003
    Professional Status:
    General Public
    State:
    Tennessee
    Development projects around the subject start out at $119.00 up to $145.00 psf

    for a 2,000 sf house with 60 x 120 lot to (3/4 acre).

    1 block away they are selling homes on 5 acres in a gated community for over

    $200.00 psf 3500 to 5200 LA.

    What range should the land component fall into? 15 to 25%?

    15 miles North of this area in less populated areas they are selling 5 acre tracts with house and getting about 27% for the land component. ($225,000 home, 1,726 sf with 5 acres - building cost is about $95 psf) - which I have from very good sources.

    If they can get 27% far away from town - what should my area get? - More or less or the same.

    If the same then the 5 acre developer in town near my subject is getting upwards

    of $54,000 per acre.

    My lot could fill a niche that is not being filled quiet easily.

    So, $50,000 times 2.5 acres = $125,000 (as a low end number) trending upwards

    to $200,000..... as a range.
     
  6. Tina

    Tina Senior Member

    0
    May 31, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Let's PM'; I have vast experience appraising vacant (for eminent domain) land in the Fl Keys = no comps...maybe I can help??? :shrug:

    TB
     
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