Certified Res. & Vacant Land Question

[Charlotte Dixon]

An appraiser friend has asked me where, exactly, does it say what a Certified Residential Real Property Appraiser can appraise, in regard to vacant land.

Yes, we can do vacant lots. How big? I never do more than 10 acres, and that's if the land is fenced pasture and not income producing......kind of like a dwelling, small horse barn and fencing, which is typical of this area. Mostly, my vacant land assignments are 1-2 acre lots. Where does it say in black and white what our limit is? This friend has been asked to appraise 190 acres of vacant rolling land which is in trust, is not incoming producing, and will never be developed. I flat out said "You can't do that".......but, where does it address this? I would refuse the job and say I'm not competent to do that assignment. Can someone point to where that would be addressed? Or, is that word "competency" the key?

 

[George Hatch]

The state laws will vary, and really, the best answer to the question is based on how your state would treat it.

The next best answer may come from the "Qualifications Criteria for Certified Residential Real Property Appraiser", issued by the Appraisal Qualifications Board of The Appraisal Foundation. In it, the AQB includes not only their recommended specifics for education and experience qualifications, but also a brief summary of what the CertRes license category is supposed to 'authorize'.

The Certified Residential Real Property Appraiser Classification qualifies the appraiser to appraise one to four residential units without regard to value of complexity.

1.  The classification include the appraisal of vacant or unimproved land that is utilized for one to four family purposes or for which the highest and best use is for one to four family purposes.

2.  The classification does not include the appraisal of subdivisions for which a development analysis/appraisal is necessary. 

The policies stated by my state board (OREA) basically represent that if an appraiser's license category would allow them to appraise whatever would be the highest and best use for the site, they can appraise the site itself.

Based on your description, I would not advocate a CR as being sufficiently licensed to appraise a 190 acre spread of raw land, regardless of the stated intentions of the owner, unless they could positively demonstrate the HBU was a one to four residential (not professional farm) use.

That said, I just came across an appraisal of a 22-acre site here in my hometown that was totally obliterated by a CertGen. Licensure level might be a starting point, but Competency still reigns as the more important factor.

 

[Terrel L. Shields]

So much land in the Nation is actually in transition from agriculture to residential uses, I would suspect many CR's can appraise land tracts of 190 acres as residential tracts. We have any number of SFR on 66-200 acres as executive estates.

As for the word

complexity.

I believe you will find that under Fed bank regs, it is the call of the bank to call such properties "complex" or not.

 

[Joe Sullivan]

As a certified residential appraiser, the only types of vacant land I feel qualified to appraise are finished building lots, (ready to build), with utilities available at the street. With undeveloped parcels, it gets too complicated for me, with too many unknowns, such as site development costs, utilities, streets, and zoning.

 

[Mike Garrett RAA]

Our Board of Appraisers program administrator is supposed to be at our meeting tomorrow night. I will pose the question to him.

 

[Roger R. Patzold]

1. The classification include the appraisal of vacant or unimproved land that is utilized for one to four family purposes or for which the highest and best use is for one to four family purposes.

the highest and best use is for one to four family purposes.

If the highest and best use of the land is for residential purposes for 1 to 4 family and the subject is not a subdivision, then a residential appraiser can appraise it if he/she is competant in the area.

If typical homsites go up to 100 acres in the area, and the H&B use of the subject is 1 to 4 family residential, then 100 acres can be done by a residential appraiser.

Please join me in a prayer for all those who are going in harm's way for freedom's sake.
<><

 

[Steve Wyrick]

What is the highest and best use of this 190 acres?

Highest and best use may indicate the complexity of appraisal to be performed. For example, if it is environmentally protected woodland or marshland then you have identified a complex property that is above the CR's level.

 

[DB]

TN only holds us to the dollar limit ... not acres .... rule of thumb for us is anything over 100 acres, that is not a working farm, goes commercial unless it is specifically zoned otherwise .... did a 1300 acre farm not long ago ... had to go to 3 different counties to get reasonable comps .... folks were retired and wanted to sell as one parcel and had a buyer ....