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Extraction Method

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Me neither, but sometimes you literally have no other choice; like when your assignment is to appraise a lot that actually is an orphan.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
If you work an area enough, for long enough, you should have good idea of at least the range of site value. This little demonstration, in the report, takes care of the GSE/Gov. Agency requirement for replication by the client and does exactly what you posted ("but appeases the "reviewers" of the report unless totally fubared. "

"I wish Santora was still around.... "

I still have every missive he has ever written to me (and some copied from the forum) regarding the CA. I miss his snarkiness as well as his intellect.

He wasn't a big advocate for the CA in residential assignments of patent (his term) properties.
I agree in the "range of site value" but disagree that it is necessary or credible for anything other than almost identical brand new. GSE/Gov do not require except for brand new. Otherwise its irrelevant, not necessary, and not the best indicator of value. So why go through the virtually meaningless motion?
 

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
When using the extraction method I think it helps to consider properties in all condition / age ranges. Plus, undeveloped lots / raw land is not a site. But you guys already know that.
 

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
When it is super complicated is when you are developing opinion of site value in neighborhoods of mostly nonconforming lots improved with nonconforming structures but rebuilding to previously existing footprint is permitted. In cases like this the value of the true vacant lots are going to a lot less than the value of the exact same size lot with existing or previously existing over sized structure because you are allowed to build or rebuild a over sized structure for the lot.
 

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
When you don't have directly or perfectly comparable site sales then you kind of have to look at it from the different ways available and then reconcile what is observed. Look at available site sales that may be located in surrounding areas, look at raw land sales, look at it using extraction on newer construction, look at it using extraction on nearly fully depreciated improvements, then you can reconcile the different ways of looking at it into your opinion.
 
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