• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

A CYA question - how much detail.

Status
Not open for further replies.

Mary Tiernan

Thread Starter
Senior Member
Joined
Dec 16, 2003
Professional Status
Retired Appraiser
State
Michigan
I am appraising a property in an area that has an oversupply, declining values, etc. New construction is stalled.

The property is within walking distance of a popular local lake. It is a 27 acre parcel, single family residential. There is much development around the lake, and there have been several new subdivisions completed in the area over the last five years, however, none within walking distance of the lake, and, new construction stalled this year. Very few sales of single family residential in the immediate vicinity, and several active listings of single family residential that have lingered on the market in the immediate vicinity.

Now, in my opinion, as of today, the highest and best use is to remain as single family residential. There are a few sales of single family residential on larger acreage sites in the area and this is not an unusual property. However, because of the location residential development might be a better use of the land if the market were strong.

How much detail do I go into? I do have one similar sale in the area from within 2 years of large acreage marketed as "can be split for residential development." There are currently several active listings of similar size acreage sites (vacant land) which have been on the market for more than one year due to the slow down, each of which is marketed as perfect for residential development.

So, under is the present use of the property highest and best use do I go into detail, or merely state that as of today, highest and best use is present use, single family residential.

For you fellow Michiganders, Cadillac area.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Now, in my opinion, as of today, the highest and best use is to remain as single family residential.

For myself, I would be worried that the market analysis required to make the above determination is beyond the scope of practice for my current license.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Ms. Tiernan,

SO ......................Why are you not planning on telling all the readers of your analysis just exactly what you told us?

Webbed.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Good point webbed. I didn't read this quote...

So, under is the present use of the property highest and best use do I go into detail, or merely state that as of today, highest and best use is present use, single family residential.

Depends on what you mean by "state" and "go into detail." For a summary report, you must summarize the support and rationale for the HBU opinion.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks