I'm doing a purchase of a SFR home where an adjoining parcel is being sold with the house under one purchase agreement. Client wants the appraisal to include both the house and the additional parcel. One parcel has the improvements, the other parcel is vacant and is used as green space, basically an extension of the side yard. The second parcel is buildable, has been split and has its own parcel number. Both parcels are similar in size, about 12000 sf each. The valuation of the two parcels as two separate vacant entities is about $4,000 each based on land sales. The issue is that I don't think its worth purchasing the second parcel separately and building a new house on it even though there are land sales. The SFR values in the neighborhood are between 50k to 100k and building a brand new house would mean you are losing equity. It would be much smarter to pay an additional 15k or so to buy land in a different neighborhood where the values are higher and to build a new house there. So even though the extra parcel is technically excess land, its use is more inline as surplus land in this situation. Would love to hear your thoughts as this situation is quite unique.