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Findings of Market for Up Coming RE Auction

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Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Just finished research for a real estate auction I have coming up in mid June. It appears that acreage values on the average are up $500 per acre for raw acreage. How ever home sales with out buildings on the same similar acreage the values are down some 40% over last year. Inventory appears to be double over last year as well across the board.

This would indicate to me that less residential buyers and more land investors, hunters or farmers buying raw crop ground and still paying higher dollar for it.

Going to be an interesting auction, as it is a multi-parcel with live estate.

It will be auctioned the following ways:

House and 2 acres with live estate

House and 44 acres with life estate on 2 acres and house

House with 2 acre life estate and additional 32 acres and out buildings

Barns and Out buildings with 42 acres no life estate,

Barns, out buildings, with 32 acres no life estate.

Ten raw acres, no life estate.

The highest bid or combinations of bids will buy the property.

The owner also has to decide if he wants to leave the dairy equipment with farm or sell it as personal property. Another tough decision. Which way will bring the most money.

This will also could end up being an appraisers nightmare for a comparable.

How would an appraiser look at this property as a complable, not know what took place to bring the sale to conclusion?
 
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