Doing a land appraisal?

[AmyShepherd]

Good Afternoon,

I have never written on here, so please bare with me. I am doing an appraisal on a property that is a REO, however in the process it has caught on fire, so the lender is wanting me to do either a Land Value appraisal (which I have never done) or an appraisal as is. Does anyone have any advise, websites or anything that can help me. Thank you for your time.

Amy Shepherd

 

[Lee Lansford]

Good Afternoon,

I have never written on here, so please bare with me. I am doing an appraisal on a property that is a REO, however in the process it has caught on fire, so the lender is wanting me to do either a Land Value appraisal (which I have never done) or an appraisal as is. Does anyone have any advise, websites or anything that can help me. Thank you for your time.

Amy Shepherd

What are your questions and/or concerns?

 

[RSW]

You should be doing a land appraisal on every SFR appraisal you do if you are doing the cost approach. How are you arriving at your land value for the Cost Approach?

 

[Lloyd Bonafide]

Good Afternoon,

I have never written on here, so please bare with me.

I think you mean "bear with me". I believe "bare with me" means something totally different, and people on this forum may get the wrong idea. :icon_mrgreen:

For your lot appraisal, your appraisal software should have a vacant land form. They can be difficult, unless you have some excellent market data on similar lots. You may need to consider what the cost will be to demolish and remove the burned house, if it has not been done yet. Good luck!

 

[nstanbru]

What RSW said makes sense. First, IMO, you need to clarify your SOW with the client. Which do they want, an appraisal of the site only or an appraisal of the site with the burned house? Was the home totally destroyed? We really need more info to offer reasonable advice.

 

[Wm. Hattaway]

Was your inspection of the property completed before it caught fire? If it was, your client may want to order a 2nd appraisal of the same property. Remember to mention that you have appraised it in the past 3 years.

 

[CANative]

Gracefully withdraw from this assignment. Your client will not hold it against you. Otherwise partner up with an experienced certified appraiser. This one only seems simple.

 

[Michigan CG]

If someone has not ever done a land appraisal this is most likely the worst time to cut their teeth.

Land values are dropping fast and it is easier to do SFR than vacant land.

 

[RSW]

If someone has not ever done a land appraisal this is most likely the worst time to cut their teeth.

Land values are dropping fast and it is easier to do SFR than vacant land.[/QUOTE]

Good Point!.....

 

[The Warrior Monk]

Good Afternoon,

I have never written on here, so please bare with me. I am doing an appraisal on a property that is a REO, however in the process it has caught on fire, so the lender is wanting me to do either a Land Value appraisal (which I have never done) or an appraisal as is. Does anyone have any advise, websites or anything that can help me. Thank you for your time.

Amy Shepherd

More facts have to be known before giving advice. From your post, I'd speculate they need an "as is," market value appraisal. That requires an examination of the highest and best use (HBU) of the property. The results of the HBU will determine whether the improvements have contributory value. If they don't have contributory value, then the value of the property is in the land.