Acreage Value

[fifteen]

Tim we're not measuring development value, just measuring it's use right now and right now, according to the OP, it's excess land. It's subordinate to the improvements. Agricultural zoning is typically used to keep taxes low as other uses would raise the taxes. Typically used up here for unimproved and meant to be unimproved large acreage sites with improvements usually kept within a couple acres. Matter of fact a lot have 1 acre homesteads taxed as improved with surrounding 40+/- acres agriculturally taxed to save money. Take it off agricultural use and you owe all the back tax difference that lower rate provided.

Tree farm? get a gc

 

[Ken B]

Pearls of wisdom from the whizkid that never heard of fair market value...

 

[fifteen]

I'm reminded of WC Fields and his famous quote " never give a sucker an even break or smarten up a chump".

What does your comment have to do with the OP?!! I'd rather be a whiz kid than a spamkid.

I mean really, don't you have anything constructive to say to help the OP with their question?

Pearls of wisdom from the whizkid that never heard of fair market value...

 

[Ken B]

Sure...OP...pay attention to Tim. He actually knows what he is talking about.

 

[Ken Tamblyn]

I usually do the most reasonable thing when there is a land value problem. I run land comps of 36 acres (Or close to it), and then land comps of 5 acres. Whatever the price difference it, there is your answer.

If you have no sales, then you have to use your vast AK (Appraisers Knowlege) or give the assignment to someone else that has the knowledge.


Or. . . . . you can tell your client to get a BPO

 

[Michigan CG]

Tim we're not measuring development value, just measuring it's use right now...............

No, no, no, no.......... we value a property in its Highest and Best Use. What it is being used for right now may not be the Highest and Best Use.

.......and right now, according to the OP, it's excess land.

If it is EXCESS land then it is able to be divided and it may have its own Highest and Best Use; if it is surplus land then you can't divide it . I provided the definitions earlier.

Don't make me cite examples, it is too Appraisal 101.

 

[Ken B]

Here is a a little memory trick for those that confuse the difference between "surplus land" and "excess land."

"Sucky" surplus land - land which cannot be subdivided and would have a lower value per square foot.

"Excellent" excess land - land which may be subdivided and should have a higher value per square foot.

So, once again, whizkid gets the terminology wrong since he implies that the subject's land area that exceeds five acres has little to no value when one would expect excess land to have higher value. And let's not even get into the question of whether HABU can be determined by a couple of basic internet forum posts.

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.

 

[Stone]

And let's not even get into the question of whether HABU can be determined by a couple of basic internet forum posts.

Nevermind whether "$1,500/acre sounds excessive" for land in a different state. Excess or surplus.

 

[fifteen]

If a residential appraisal has been ordered do you consider it's commercial value? I see you're a CG so that would have to be your consideration but the OP author is residential. It's not my job to consider commercial value, although if I perceive that commercial use may be the highest and best use then informing the lender is a must. You want to tell us more things that don't relate to residential appraising? We're all ears - NOT!! LOL

BTW - Unless a value or range of value is expressly enumerated or referenced there is no appraisal. Appraisal 101

No, no, no, no.......... we value a property in its Highest and Best Use. What it is being used for right now may not be the Highest and Best Use.



If it is EXCESS land then it is able to be divided and it may have its own Highest and Best Use; if it is surplus land then you can't divide it . I provided the definitions earlier.

Don't make me cite examples, it is too Appraisal 101.

 

[Ken B]

God, this gets better and better.


I hate to say it, but some aspects of the DC IVPI are gaining some appeal.