Adjustments For Utility Of Vacant Land

[The Warrior Monk]

These type of thing is heavily dependent on individual markets. In the area that I work, there is a definite difference between wooded and pasture, but it has nothing to do with mineral rights, farming potential, etc.

Here in the Hamptons, NY, the lots with the building rights intact are being improved with estate type residences. Parcels cut out of farmland are already cleared and have good utility. Wooded parcels (outside of villages) generally have clearing restrictions, which range from 15% to about 30%. This obviously limits the utility of the parcel, and can mean the difference between putting a pool, poolhouse, and/or tennis court on the property and not being able to do so.

 

[Stephanie Anderson]

Paired sales analysis is always the best place to start. If the pairings are showing wide variations and inconsistent patterns, I've started switching to a qualitative analysis. If you are using a form report, the qualitative approach may not be possible.

It's a bit like linear regression or bracketing. You're going to use sales that can be demonstrated to be inferior or superior to the subject, then show how your subject fits in between those two value sets, discussing the various features that make the subject inferior or superior to the sales.

Last year I appraised a large parcel, partially in the city limits of a small town, with substantial flood plain. I ended up setting up with several groupings of sales...
flood plain sales, sales close to town, agricultural properties, etc. After I bracketted each set of sales, a dicussion then followed about the subject's comparison to each property type. It was very time consuming but I felt good about my concluded value when the report was finished.

Good luck.

Stephanie Anderson

 

[xm39hnu]

Ditto what Stephanie said. Use qualitative analysis and/or relative ranking when you can't find enough paired sales to hang your hat on. From your posts, it sounds like there won't be enough data for regression, either. I, too, use a narrative in these situations. May as well. If you use a form, you're going to have an encyclopedia-sized addendum anyway to explain your ranking system.