40-30-20-10 rule, aka 25% rule, aka ?

[Pittsburgh Pete]

Congrats--well done!! Now get back on topic---thought this sucker died awhile ago.

No small accomplishment--buy yourself a beer on me (or I'll buy it for you when I come to Miami for the Super Bowl--assuming the "Stillers" get their heads out of their butts and play like they are capable of rather than their recent imitation of the Cleveland Clowns).

 

[Kali the Boston Terrier]

Done!


Thanks to a complete review of the 510 course exercises and the help of AI's Cap Theory Techniques and Study Guide, 3rd Ed.

IMO Whitmer's material did the job for everything except the Income Cap module. Cramming with the 510 exercises and the Study Guide did the trick for me.

Great job...remember that day very vividly myself...now go write your demo!

 

[Terrel L. Shields]

have searched the internet for this rule but can't find anything on it. I am wondering if anyone has heard of this "rule" and if there is any validity to it.

http://appraisersforum.com/showthread.php?t=148661
http://appraisersforum.com/showthread.php?t=133955&highlight=backland&page=2
The 4-3-2-1 rule. The backland rule. It is one of the variations of a common rule from the 1866, called the Hoffman rule, another was called the Davies Rule and was based on the ruling of a judge. There are also "corner lot tables". Peter Colwell has a couple of articles that discuss the method.
http://www.business.uiuc.edu/orer/V13-2-1.pdf
http://www.springerlink.com/content/l452811562357808/


They are all technically incorrect but cited in legal literature and by Realtors.

 

[Phil Sarazen]

have searched the internet for this rule but can't find anything on it. I am wonderin

I would not use that old rule. I think a better way to handle it might be to look at the most probable buyer and the highest and best use of the site. Using comparable parcels, test for excess or surplus land, and if there is excess or surplus land, place one value on the "primary" portion of the site and another value on the surplus or excess portion.

I recall the old "4-3-2-1" rule from beginning real estate classes but have never heard of an appraiser using it.

Phil

 

[stephenbullock]

I took a one week land valuation course a couple years ago from the International Association of Assessing Officers (IAAO). They sometimes use a formula like this to value land. I can't remember the details but do not believe these formulas should be used by fee appraisers. In the UK they use similar formulas to determine retail market rent. These formulas do not take into account things like foot traffic, typical automobile traffic speeds, corner influence, and topography, all or some of which may impact exposure/visibility which will affect commercial site value or retail market rent. You may want to analyze this site on a price per square foot and price per front foot basis, and calculate frontage-to-depth ratios for it and your comparables.

 

[Terrel L. Shields]

have searched the internet for this rule but can't find anything on it.

My links are right above your post...think they are still good.