Appraisers and Land Value Adjustment Help

[bnmappraisal]

I really don't understand why some appraisers in San Diego apply such a small adjustment for lot size within the sale comparison approach grid

The Warrior sums it up beautifully right here (my bold below)

But many simply referenced "The List" when making adjustments.

 

[George Hatch]

Most of the land value opinions we see in the 1004s are developed as a residual; the problem with they way THEY are doing it is they're using the subject's own SC instead of the SCs for each of their comps.

 

[Ottomaddux]

Maybe I am missing something, but the above data shows no price penalty thus no site/view adjustment between the houses - they each sold for $400,000 regardless of site backing up to X or Y.

Sometimes adverse influences show impact on prices, other times they do not., Sometimes larger sites of surplus land shows a positive adjustment in the market, other times not. Each situation is different which is what makes appraising difficult - if one tries to find the answer in the market and not in a formula.

Vacant land sales do not always return the answer either, because as others have noted, the contributory value of site sizes to a finished package of improvement and site can differ from prices paid for vacant lots, which tend to be based more often on a $ per sf basis. Of course vacant land or site sales are valuable information and should be analyzed if any are available in the relevant market area.

You are missing something. The percentage listed at the end of each example. You are correct however, different markets have different reactions to various externalities. Being able to answer the survey question should put most appraisers into review. Then again I have found in markets with model match cookie cutter subdivisions matched pair analysis is a joke. I have been able to justify almost any adjustment I want through MPA when there are multiple model matches. I have had pool adjustments run from -$50,000 to +$100,000 on $500,000 homes.