[xiaodong lou]

Hi,

I don't know how to appraise this one. This a SFR (1,000 sf built in 1,969) on 40 acres(3 lots together, 34 acres+4 aces+1 acre). It is currently under contract. Its value is mainly on the land. But I can't find any comps. All the comps I can find was less than 10 acres. Any advice will be appreciated.

Thanks.

[CANative]

You need to determine what type of excess land you are dealing with and the market value (if any) of that excess land and you need to develop a well supported opinion of highest and best use.

If you have not had to do this before, you may need help from someone local or you may need to spend days of resarch time analyzing land sales, historic sales data, etc, etc.

It's not and easy assignment even if you've done them before.

[Angela Habercorn]

Greg is exactly right. How far out did you search (time and proximity)? In my area, there aren't many recent large land sales so I am currently going back in time to find comparable sales. And depending on the acreage, I have gone further in proximity and even to other counties (if appropriate).

Plan to spend lots of time on this. They are always a challenge. Good luck.

[Ray Miller]

Where do you hang your hat at? This might help get you some answers.

You may need to check non-realtor/MLS listings. Could mean spending a t lot of time at the court house looking at land records.

As many here cover the rural areas and as has been said, these are not simple ones to do.

Don't forget to walk or ride the land and see what you find out there and about. Forty acres could be hiding a lot of bones.

[Ray Miller]

Do they each have a parcel #? Can they each be built on? Are they taxed as one?

What did you order say and you engagement contract?

[xiaodong lou]

Do they each have a parcel #? Can they each be built on? Are they taxed as one?

35 acre, 4 acre and 1 acre have separate parcel #. They are taxed separately. The house is on 1 acre lot. They are nice lots with many big trees. They were located at frontage of Highway so they have commercial potentials.

They are sold in whole. I'm just wondering if I can't appraise separately. But that would be 3 reports.

[Stone]

The value of the whole property is not likely equal to the value of the three lots separately. You cannot just appraise the three lots and combine the value.

[Stone]

Another thought - it sounds to me like you need to find someone in your area (wherever "not given" is) who has more experience with this type of appraisal. As Greg noted, this is a fairly complex assignment and your questions lead me to believe that you need help from someone in person, as opposed to just getting assistance here.

You will likely have to go to similar/comparable markets, as well as go back in time quite a bit. Make sure you are comfortable with understanding an expanded market area and where you can and cannot look.

[Ray Miller]

You are now working through your problem. Next is a call to your lender to see if they want an assemblage of the parcels, which may reduce or increase the value or it they want three appraisals, one for each parcel. You need to establish the HUB. Just because they have road frontage dose not mean they have commercial use. That is where a trip to the zoning office come in.

[Webbed Feet]

Mr. (Ms.?) Lou,

There is too much going on here regarding appraising this property to cover in anything under about twelve paragraphs of typing... and you simply are NOT providing enough information to tell you what you need to do. ... Not only enough information about the subject, but also no information about your licensing type, location, or experience.

This tells me right off that you don't even understand the questions well enough to be asking for the answers. ....From the little bit of information I can gleam from the thread I already suspect that you do not have one (1) subject property...I bet you have two or more. .... These might not even be residential ..You don't know... This makes my answer to you to be "You shouldn't be doing this assignment." ... My bet is Mr. Lou that you do not know what "Legal lot of record" means or it's implications. ... When anyone comes with questions about a property like this, proving they have done no research whatsoever by failing to give us any of the bare minimum information needed in order to aid them, I feel they are completely out of their competency abilities in order to even proceed.

I greatly respect this forum as a place to learn ... But I also see it as a cop out for knowing and following the very first rules of USPAP and state licensing laws. .... Before everyone spends a multitude of posts attempting to pry the crucial information out of you we have to have to advise you..... Let's cover some basics....

- What is your license type and what is the transaction value involved with this appraisal? ....Are you out of scope of your license?
- Have you informed your client you do not know how to proceed and how you intend to gain competency? ....
- Do you understand that regardless of the sale contract including all three parcels, or not, that this has no bearing on what the appropriate approach to determing the market value of the subject, or subjects, should be? ... You do not even seem sure of yourself enough to know that you are not appraising the sale contract or who owns the property.
- It appears to me that you failed to identify what it was you were being asked to appraise before you entered into an engagement contract.... What is this property? Residential? ... Commercial? ... One subject, or more subjects?

Barry Dayton