50k - 7k = 50k

[Alan Simmons]

I am between an enigma and a hard place.

I have an assignment to value a SFR (1 acre) as is. I am then to value a 0.5 acre division (as per a survey). Then finally to value the SFR minus the 0.5 acre.

The division is such that it will have minimal impact on the SFR.

So far, the as is value of the SFR is $50,000 and the value of the SFR minus the land is still $50,000. I can not find any market reaction between SFRs on 1 acre compared to only 0.5 acre. In fact the five comparables (for both) have between 0.41 and 1 Acre.

My problem is that minimal buildable lots in this un-zoned area are bringing approximately $7000. I have several minimal lot sales that were used just for a MH.

No matter how I try to explain this it seem deceitful. I have tried H&BU, excess land, entrepreneurial profit, et al.

Anyone have any ideas how to explain why the value of the SFR does not change even with the removal of $7000 of excess land.

 

[David S. Roberson]

I think you have already explained it. There is no market reaction to the larger lot. The extra site's highest & best use is as a separate lot, not as a contribution to the Subject primary lot. It is surplus, not excess. Does this help?

 

[jtrotta]

There are area's in our state where similar mathmatical occurances happen :lol: and no matter how hard you try you will not be able to fit the square peg in the round hole - since you already have all the evidence & supportive documentation, what else is it that you need. :?

Ah, you can't believe my eyes 8O

 

[Richard Carlsen]

If the house, sitting on the 1 acre site, can legally have a 1/2 acre split off for an additional building site (or is already split), you must give the split the full value and consider that in your site value. Your site is in essence, two fully buildable lots. Highest and best use is that which will bring the most money to the owner and in this case, that would be the house on a 1/2-acre lot and a separate saleable 1/2-acre lot.

You may be starting your full lot appraisal without considering the value of the splitable 1/2 lot. I'm sure it may be possible not to find a difference between a full 1-acre lot and a 1/2-acre lot but you should be starting with two 1/2-acre lots for site. If you are not, then you are not comparing apples to apples and cannot be concerned that the results do not jive.

 

[Thomas N. Morgan]

Alan,


What you have here is a homesite is a homesite is a homesite.

Thomas N. Morgan (Florida)
State-Certified Residential Appraiser 0000052