Acreage Value

[DMZwerg]

I'd say your advice is misguiding Tim. This is a residential appraisal. Since when does a res appraiser consider subdevelopment value or tree farm value or corn farm land value? We don't.

We don't???

Man, my boss (I am still a trainee technically) must have been sending me the worst of the worst then

If you said a "Licensed Residential" instead of "Residential" I might have agreed with you ... but then again I am going for "Certified"

IMHO Certified Residential should be considering farm and subdivision usage, depending on what type of markets they do (aka, more than just city & suburban).

 

[Pittsburgh Pete]

To be honest with you, I have to conclude there's not very many good appraisers on this board and the claimed experience and status of some of the most vociferous should be called into question. Their professionalism certainly does need to be.

Perhaps it's because they are doing something different than you. They are appraising while you are apprazing. That must be it!

 

[DMZwerg]

hahahaaa, you're in the hamptons - not much acreage up there right? Find an area with a lot of acreage for sale and do a search. Data will lead you to the same conclusions I arrived at years ago.

Not true in Wisconsin for vacant parcels (once water frontage was taken out of the equation).

I assume you meant vacant land searches because county and exact township (location), square footage (size), quality and style, etc, make big enough differences to obfuscate differences in acres for properties with buildings on them already.

Man, never heard so much from somebody with an untenable position before. Note that the position is untenable because the person keeps using absolutes rather than specific limited contrast points. That would be like trying to argue Boyle's Law as an absolute nowdays and not mentioning STP limits/ranges that scientists have discovered since then.

In other words, it MAY hold true for ONE specific sub-market for a limited time but should not be ASSUMED to apply the same to ALL markets at ALL times. As a case point to examine data to see if it applies it is a valid point, but as a general rule of thumb it is worse than misleading, it is foolhardy to assume added acres beyond an arbitrary point have no added value.

When are you guys going to get it through your thick heads you have nothing to teach me? I have more residential experience than most of you CG's and most people on the forum.

Hey, I am not even a Licensee yet and I have already learned (long ago) that there is no point at which having MORE experience is superior to actually thinking. Seen too many old-timer appraisers with more experience than the entire firm I work for screw up by the numbers so badly that they they are no longer in business. Problem is the industry kept changing and they had forgotten how to learn. Some could read markets intuitively, but when markets started changing too fast, or techniques changed, they fell behind the times. Any appraiser worth his salt should be doing that check you mentioned on acreage for every appraisal they do on any acreage. Every time. Relying on a "rule of thumb" discovered/determined years ago is a good way to lose your certification in today's market, especially since it may have changed and that current use (and H&BU) could really play merry havoc on such thumb rules (seen it happen).

Yeah, "just a trainee" ...
... with a degree in Mathematics

 

[Ken B]

In my area, a vacant 48-acre parcel in a not-so-nice area transferred in 9/05 for $18 million with the intention of development with town homes. Really, really dumb move because the location was not that good for residential development and because the residential market tanked later that year. But large acreage parcels were becoming rare and developers were seeking to build town homes anywhere and everywhere.

The same vacant 48-acres transfered in 8/07 for $14.25 million and the purchaser has obtained rezoning and is seeking development approvals of an industrial park. Much better use of the land given its location (adjacent to the Florida Turnpike, near an interchange with the Turnpike, and near other land with light industrial zoning.

Anyway, I think acreage greater than 5 acres in that area might be worth something more than $1,500 per acre.

Perhaps a more pertinent example would be the recent sale in this area of a 6-acre parcel surrounded primarily by parcels of 0.5 to 1.0 acres. This was an improved single-family property which was much larger than the vast majority of surrounding properties. It transfered for $95 million. I guess since Trump was originally asking $125 million for the property, someone made a great deal.

I think the land area for that parcel which was greater than that typical for the neighborhood also had a value perhaps a bit more the $1,500 an acre.

That or the buyer really liked the garage.

 

[TC]

When are you guys going to get it through your thick heads you have nothing to teach me?

I've learned quite alot from the people on this board. If you truly feel none of us can teach you anything, then leave the forum, others have. Nobody misses them.

I have more residential experience than most of you CG's and most people on the forum.

Sadly, I have 32 years in, show me yours, I'll show you mine.

MAI's suck at residential appraising, at least all the ones I've reviewed.

My first 2 bosses were MAIs, great residential appraisers.
It's scary that you're doing reviews.

Is it true that if you can't hack it as a residential appraiser you become a MAI?

Seriously, take a couple week long MAI classes and get back to us.

And one more thing: Lighten up, Francis!
​

 

[Calvin the Airedale]

And one more thing: Lighten up, Francis!​

​

Let's get two things straight:

Hey, anybody touches me, I'll kill'em.

Anybody touches my stuff, I'll kill'em.

 

[nauthead]

My dream is to one day testify in a litigation case where the appraiser hired by the other side says land reaches a point where it no longer has value. There may be such a point but I'm guessing that amount of land would dwarf Jupiter. And just for the record, I'm a certified general with 90% of my income from residential assignments.

 

[Ken B]

You have been reading my mind...

 

[Michigan CG]

Originally Posted by apprazur
$1,500/acre sounds excessive. It might be worth that much up to 20 acres but certainly worth much less at 36 acs. ..................

Originally Posted by apprazur
Tim we're not measuring development value, just measuring it's use right now...............

Originally Posted by apprazur
If a residential appraisal has been ordered do you consider it's commercial value? Get real

Originally Posted by apprazur
.............OP author got the best advice from res appraisers. Let us know how it turned out ....

.........Since when does a res appraiser consider subdevelopment value or tree farm value or corn farm land value? We don't........

..........I guess when they say CG's are the worst residential appraisers they weren't kidding.........

......You CG's really shouldn't be giving advice to res appraisers imo............

Originally Posted by apprazur
My experience from data says that over a certain acreage there is no added value.

Originally Posted by apprazur
Do you think they're buying 25 acres with the extra 15 thrown in or are they paying for the full 40 acres? My experience is they're buying the 25 acres with the 15 thrown in for free as most buyers consider it excess land, and this is borne out in a lot of markets around here.

Originally Posted by apprazur
When are you guys going to get it through your thick heads you have nothing to teach me?

To be honest with you, I have to conclude there's not very many good appraisers on this board and the claimed experience and status of some of the most vociferous should be called into question.

Is this thread about others or is it about helping the OP author with his problem? I don't see how your narrative helped him at all. All it did was call any of my suggestions into question.

20+ people disagree with you, they all suck.

 

[Pittsburgh Pete]

Some of those statements are inane taken out of context but then again they were inane in context!!! Now that's entertainment!! Thank you Apprazur for bringing so much humor into my humdrum day of eminent domain work.