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Estate appraisal-no comps

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DeKay Bayliffe

Thread Starter
Sophomore Member
Joined
Oct 16, 2006
Professional Status
Certified Residential Appraiser
State
Alaska
I have been asked to do an estate appraisal on a parcel of vacant land that is located on a remote island in the Aleutian Chains. The problem is, there have been no land sales within that particular town within the last ten years and the last SFR that sold was over 4 years ago. This is a very small native community that depends on the profits of commercial fishing. The closest town is over 30 miles across the ocean and is not comparable, in any way, to the subject's town. Any good advice as to how to finish?:Eyecrazy:
 

AnonApprsr

Elite Member
Joined
Jan 21, 2008
Professional Status
Certified Residential Appraiser
State
Massachusetts
Use the sales of other island chains that have a similar economies. Also use the 10 year old sales, and use extraction for the 4 year old sales.

Oh, and I'd ask for an all-expenses-paid site visit, just to make sure you know what you're dealing with. :)
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Maybe you should contact Sarah Palin. She is of the opinion that because she can "see" Russia from her house, she is an EXPERT on Foreign Policy.

Kidding aside, you would have to use: 1)the most recent sales you can find no matter how far back in time you must go. 2) Use the house sale and extract the land value. 3) Use any active listings you can find. 4) Use sales on neighboring islands and adjust for locational differences based on the older sales/listings on the subject island. 5) Interview several real estate agents that do business on the island. Record the interview (with their permission) for future reference, and report their opions, if any.

I am assuming that this is aresidential homesite. If not, you would have to get a CG to assist and sign along with you.
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
The first thing is you are going to have to define the neighborhood; which doesn;t have to fit into a circle. It may include and be a number of area that are not adjacent or continguous..........and to do this you must know the market. And I suspect you do not know the market. given the competency provision you are going to have to find an appraiser in alaska that does know the market and "co-op" with him/her--this is customary on certain types of properties. I have co-oped many times in many places.

Neighborhood is not what so many appraisers think...a one mile radius and expand from there to make the underwriter happy.

This does not have underwriter issues. If this is being used for estate tax purposes, be very careful.
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
The appraisal fee may be greater than the value of the land
 

Calvin the Airedale

Elite Member
Gold Supporting Member
Joined
Aug 17, 2004
Professional Status
Certified General Appraiser
State
Ohio
I have been asked to do an estate appraisal on a parcel of vacant land that is located on a remote island in the Aleutian Chains. The problem is, there have been no land sales within that particular town within the last ten years and the last SFR that sold was over 4 years ago. This is a very small native community that depends on the profits of commercial fishing. The closest town is over 30 miles across the ocean and is not comparable, in any way, to the subject's town. Any good advice as to how to finish?:Eyecrazy:

Dear DeKay,

I don't know if you're a male or female but I certainly hope you have a thick skin. So far you've been called a hick and an incompetant.

I don't know about you but I always feel warm and fuzzy about someone's advice right after I've felt the back of their hand.

How do you read the market in a place which doesn't appear to have much of market? It's a pretty common problem nowadays, even though it appears exotic by virtue of the remote location that you're dealing with.

What is the normal pace of that particular market? Slow? What other indicators exist that might suggest changes in RE value? Rents? What other markets of similar characteristics exist in the Aleutions? ie, small, native fishing enclaves, with limited markets, low turnovers, etc. In other words, look at all the listing and sale data you can get for anything even remotely similar. Go as far back in time as records will allow.

Join forces with another appraiser? Sure, if you can find one that has more recent experience or a consistent track record on that or a similar island. My guess is that only God knows what that parcel is worth. (Of course that's the truth of any assignment.)

You should be OK as long as you describe your experience, or lack thereof and, what you will do to bring yourself up to speed on the issues involved. Pay special attention to your scope of work, it will be your battle plan for producing a credible result.

Good luck! I'd be interested in hearing back from you and finding out how you fared.
 
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