AG zoning

[ibraheem01]

I am a certified appraiser (AR) I have the order to appraise a single-family home on a 40-acre land. The zoning is AG. No crop and no income from land. Does my license allow me to appraise AG zoning??

 

[Terrel L. Shields]

Does my license allow me to appraise AG zoning??

I assume that if you are looking at 40 acres with the highest and best use being a residence, then yes. No income on the land suggests it is just a pasture or meadow, and HBU is a residential ranchette, estate, or whatever you want to call it. I'd stick to comps between 20-80 acres and adjust land dollar for dollar from vacant land sales. Provide 3 comps for the land as vacant to support your land value.

 

[Tiffany Gibbons]

I am a certified appraiser (AR) I have the order to appraise a single-family home on a 40-acre land. The zoning is AG. No crop and no income from land. Does my license allow me to appraise AG zoning??

What is the purpose/intended use of the appraisal?

 

[ibraheem01]

What is the purpose/intended use of the appraisal?

refinance

 

[glenn walker]

Normally yes

 

[George Hatch]

I am a certified appraiser (AR) I have the order to appraise a single-family home on a 40-acre land. The zoning is AG. No crop and no income from land. Does my license allow me to appraise AG zoning??

Depends. Would the property normally be marketed as a residence or as land?

What you're asking is about the scope of practice for your license. For this property the answer to your question is going to be based on the results of your HBU analysis.

I just completed an appraisal on a property that consists on a house on 12ac, but in that case the house is irrelevant because the parcel is worth more as land value. 4/5 of my comps also had existing SFRs on them but were marketed and sold for land value. Now your situation is different due to the different zoning and can be even more different depending on topography, access, utilities, etc. The point is that you have to get a handle on the HBU before you can figure out what types of comps, which types of buyers, how they're marketed, which units of comparison to use to select and analyze the sales data and how to report the appraisal.

Problem identification comes first. After that these other questions basically answer themselves.

 

[alebrewer]

Posts #2 and #6. You have to determine whether 40 acres is super-adequate to support SF has the highest and best use. Markets where larger tracts DO support SF use are usually those markets where the land values are relatively lower (there is generally an inverse relationship between demand and size of tract necessary to support SF as H&BU).

One of the BEST ways to determine how the market perceives the amount of land necessary to support SF as H&B is to look at sales. Are there any sales of properties (in the subject market) with SF and 40+ acres? If so - is there a sufficient # of sales for you to conclude the market accepts that size tract in support of SF? If not - H&BU is most likely something different - subdivision, income producing, even commercial (depending on likelihood of zoning changes/access to arterials, etc.).

 

[John Hassler]

I agree with Hatch. Since you are licensed, your biggest USPAP hurdle is competency in evaluating the H&BU even if it is SFR.