Differences in GLA and lot size

[Jim Lusk]

Definitely depends on the neighborhood. My house sits on a 10,500sf lot. An identical house on an 8,900sf lot sold for more than my house appraised for (it had some nicer amenities added in the past couple of years), but even at $25/sf that's $40,000 on a $300,000 house. I can tell that there is no way you could justify that kind of adjustment in my area (relatively affluent area, small tract houses). I suspect (I have not done a full analysis or even a partial, this is just a gut feeling) that there is less than $5,000 "value" in my extra land. There might even be no value to some people.

 

[Webbed Feet]

It's obvious infinity can make the finite oblivious.

Mr. Stone,

Simple minded people can't understand the oblivious...LOL

Mr. Baughn,

I can certainly appreciate their problem too! ... Something better off left for the geniuses of the world I am sure.

Barry Dayton

 

[Steve Owen]

There might even be no value to some people.

This is an important point... one that might be missed by a lot of appraisers. What you are looking for, when you appraise is not what an individual buyer would be willing to pay for, but rather, what the market would be willing to pay for.

If a few of the participants in the market want a large lot and are willing to pay extra; and a few of the participants actually want a small lot and are willing to pay extra for that; and most participants don't care either way... then the adjustment would most likely be zero. If half or more of the participants would prefer a small lot, as could easily happen in a retirement community, then the adjustment would likely be negative (comparable sale small lot superior).

I still think Bill did an excellent job of explaining this. You appraise... you don't just do math.

 

[Jim Lusk]

I also agree that BIll did an excellent job. I was just pointing out an example of which I am EXTREMELY familiar. Often an example may help somebody realize that there are flaws in a way of thinking...............