Acreage Value

[Mr Rex]

I used to travel quite a bit, and it was hard to avoid the rubber neck response to horrific wrecks, but I never considered that one of the wrecks could get their antiquated and damaged POS vehicles or the driver back on the road and actually threaten other folks traveling the same highway with their reckless actions and lack of understanding of the rules of the road and the legal use of the highways. In this case, I see that some folks on the same highway as others here are dangerous and we should be aware that we share the road with folks best suited for a short bus, but that have been given full driving privileges.

FWIW, the helmeted ones shouldn't be allowed near the front of the bus.

 

[Michigan CG]

Appraizur,

I noticed that you did not address this. Any comments?

.....................So what you are saying is that a modest home sitting in Clinton County Iowa on 40 acres of the most productive farm land in the world should only be considered as a residential property and you think that "$1500" an acre is too high for the excess/surplus land when they are selling that land for $7,500/acre. When valuing rural land you consider the contribution of the improvements. If the house is a 1,200 SF house built in 1950 and contributes $50/SF then you have a house contributing $60,000 in value to land worth $300,000.

You really need to read this book (I have) before you post on this subject any further:

http://www.appraisalinstitute.org/st...-property.aspx .....................

 

[The Warrior Monk]

My experience from data says that over a certain acreage there is no added value.

I have yet to come across such a situation; and I'm not talking about just properties that can be improved either. I've appraised agricultural reserve properties (i.e., no development rights), wetlands, landlocked parcels, etc., and have never seen excess/surplus land add no additional value.

I can imagine the situation occurring in atypical situations, such as dealing with contaminated properties, but I doubt that is what the OP is referring to.

 

[jay trotta]

Ken B
But I have to ask myself...if the owner can be convinced he has 20-something acres that have no value, I wonder if he would give them to me.

limited tongue waggling.....can we share, I love the anythang over "5 acres has No Value concept".......I would most definitely venture outside the snowglobe for any of that Value Less property, ahem...pass the Deed first, then I'll open the door

 

[fifteen]

Tim, I didn't address it because it's too obvious.

Appraizur,

I noticed that you did not address this. Any comments?

 

[TC]

Just make sure you type the report in all caps.

 

[Mr Rex]

This land only has no value when its most convenient in a poorly developed residential appraisal. While I will concede property values at/near/or below zero in certain areas like Detroit, I doubt they are giving away land in the OP's area because the lots are just too big:new_all_coholic:This is land, not a **** film.

 

[fifteen]

Well gee Dave. All you have to do is run acreage comps and if the data tells you that 30 acres is selling for almost the same price as 40 acres - what does that tell you? I think the largest I ever did was 125+/- acres with improvements. The guy wanted to turn it into a preserve but he wanted an opinion of value for some legal matters. Beautiful property and no really true comps, some similar though. 3 lakes. I valued it - No problem and it's now a nature preserve. We have zoning up here up to 40 acres and a few people still own 2 or more parcels, so you still see it once in a while.

Tim: Extensive experience in large acreage. I wonder if the OP author went with your suggestions or the suggestions of the res appraisers here. Hmmmmmm

 

[The Warrior Monk]

I'd say your advice is misguiding Tim. This is a residential appraisal.

FWIW, "residential" and "commercial" classifications are purely artificial; they relate to credentials, i.e., what an appraiser may or may not appraise given the license law of the state issuing the credential. Fact is, market participants don't consider credentials when valuing properties. As such, neither should the appraiser (except when determining what assignments they may or may not take), since the appraiser is reflecting the actions of market participants.

Since when does a res appraiser consider subdevelopment value or tree farm value or corn farm land value? We don't.

We most certainly do, if that is the way the market participants value the property. If the appraiser does not, and the market does, the appraiser has not performed a market value appraisal.

You CG's really shouldn't be giving advice to res appraisers imo. You complicate things more than they need to be and dismiss welcome guidance as incomplete and berate the poster. Your opinion isn't needed for a residential valuation - sorry, but that's the way it is.

Didn't somebody recently say you don't know what you don't know?

There is no such thing as a residential valuation. That is simply a concept that obfuscates the issue. Simply value the property as the market does, be it direct sales, subdivision analysis, direct cap, DCF, etc. If the market participants value it one way, and the appraiser doesn't (in a market value assignment), then the appraiser has not performed or created a credible appraisal.

FWIW, HBU is ignored is some assignments. However, these are not market value assignments, nor do you typically see them in lending assignments. Examples include use value, investment value, insurable value, etc.

 

[Mr Rex]

Apprazur analysis: