- Sep 28, 2003
- Professional Status
- Certified Residential Appraiser
- New York
Any recent (1-2 yrs) closed SFR sales on larger than 1 acre lots??
WRONG!And what about the deed? Are both lots on the deed? Then it is one property with 2 lots. One.
NO!total value for the whole. .
many times yes, adding two lots together into a larger site diminishes the value of each lot,(your example ). However, this is not combining 1 + 1 acre for a 2 acre parcel, this is a one acre site with a home on it and the second acre site remains vacant for building, thus the one acre build able site has the same value as any other one acre build able site in area. It would not be misleading if it is true for the market with support for it in the market.NO!
Adding the value of the improved lot to the value of the second lot, as a buildable lot is MISLEADING and not acceptable. One acre in my market is worth about $25,000. Two acres is worth about $35,000, maybe $40,000 on a good day. That does NOT equal $50,000.
If you want to appraise it as one economic unit then you would need to check the NO box for Highest and Best Use on the 1004 form.
READ the stupid FNMA guide. It clearly states you can include the lot if adjacent and similar zoning. Now go to USPAP and show me where every parcel has to be valued separately. As far as properties HUNDREDS OF MILES APART. Not only is this NOT 100 miles apart, but are adjacent tracts, I have appraised parcels HUNDREDS OF MILES APART under the same report not once not twice but dozens of times. I've appraised estates with dozens of parcels in various states. I have portfolio appraisals that include hundreds of parcels producing income over ten or more states.A deed is only a way to transfer property rights