4 subdivision lots

[Michael S]

If you have bulk sales then there's no need to worry about absorption and discount rates. There are 6 methods of valuing land, sales comparison is usually the best one if you have the data. The subdivision approach is for when you don't have bulk sales data because it's generally less accurate as it's much harder to get support for the absorption rate, discount rate, etc.

 

[Papoua Jose]

According to this AMC, the trigger is five lots when subdivision analysis has to kick in. It's at the link below right under their recipe for pumpkin doughnuts :laugh:.

http://appraisalblog.mountainseedamc.com/blog/?Tag=Appraisal Coordinator Tip of the Week

 

[jimmyfrank]

If you have bulk sales then there's no need to worry about absorption and discount rates. There are 6 methods of valuing land, sales comparison is usually the best one if you have the data. The subdivision approach is for when you don't have bulk sales data because it's generally less accurate as it's much harder to get support for the absorption rate, discount rate, etc.

Michael, Would you share those six methods? Thanks,

 

[Terrel L. Shields]

Hunt for bulk sales. I see discounts for buying as few as 2 lots in this market. Beats that "Dutch Auction" market where you had to buy 8 lots or more at a time....Those lots fell by 80% in price here in 18 months...left a lot of builders holding the bag then dumping that bag onto the banks...