Allocation Method

[FMV]

Hey AF-

So.. having just so much fun today having to figure this out.. NOT!! lol

Just curious from anyone familiar with this method if this looks correct?
(See Attached).

From my research-this is for an area of new construction-so felt this is the best method:
I've located some comparable land sales with vacant home sales as well as vacant lot sales. Determined the ratio of the value of the land to total property values. Then, applied the ratio to the property that is being appraised and came up with it to be about .1

Would it look like this on the grid?

 

[Raven59]

Your ratio for a premium lot is 10%? Basically the bottom fields are available to compare/adjust for what doesn't fit above.

 

[gregb]

Why wouldn't the site adjustment register on the adjustment grid line for site?

 

[Raven59]

Why wouldn't the site adjustment register on the adjustment grid line for site?

It's logical to put it on the site line with explanation in the commentary. I thought Bodephus was asking if it was OK to do it at the bottom maybe to separate the adjustment for the reader.

 

[gregb]

If he has enough vacant site sales, no need to resort to allocation to support a site adjustment between the comparables used in the report and the subject.

 

[Raven59]

If he has enough vacant site sales, no need to resort to allocation to support a site adjustment between the comparables used in the report and the subject.

I think this started out there were not adequate sales in the subject or competing development/area to figure out if a premium adjustment existed. I believe the percentage adjustment was developed from other sales. I could easily be wrong

 

[gregb]

We could both be wrong, after all, its TEXAS, land of hats, belt buckles, wild catters and no zoning!

 

[Raven59]

We could both be wrong, after all, its TEXAS, land of hats, belt buckles, wild catters and no zoning!

Working off limited information. One unknown factor could change the way this is solved. I'm sure there will be more to come.

 

[Raven59]

We could both be wrong, after all, its TEXAS, land of hats, belt buckles, wild catters and no zoning!

And the advice could be worth what you paid for it.