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How do you treat this situation

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WadeKoutnik

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Feb 27, 2007
Professional Status
Certified Residential Appraiser
State
Florida
he message you have entered is too short. Please lengthen your message to at least 10 characters.

OK here is the original message. They deleted the wrong one...

Subject is in a high dollar golf community. I have plenty of sales from 10-12 months ago. However, the only ones within 6 months are not in public records. There are 4 of them where the buyers bought the land 2-3 years ago and then made a second transaction to build the home on the property that closed within the last 3-4 months.

Obviously, I would rather use the most recent sales, however, can I? and How do I determine the sales price or adjustment for land owned?

The sales office in the neighborhood is where I got my info from.
 
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Michigan CG

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Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Here is the original post:

Subject is in a high dollar golf community. I have plenty of sales from 10-12 months ago. However, the only ones within 6 months are not in public records. There are 4 of them where the buyers bought the land 2-3 years ago and then made a second transaction to build the home on the property that closed within the last 3-4 months.

Obviously, I would rather use the most recent sales, however, can I? and How do I determine the sales price or adjustment for land owned?

The sales office in the neighborhood is where I got my info from.

Sorry, I messed it up.....:angry:
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Perhaps you started your response prior to the complete END of the message. I've had that happen and found (quote) below where I have typed my message.

However, the comps you say you would rather use are not arm's length transactions. They involve a land sale at some point several years ago and then a contract to build a house. That is not a market transaction.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Perhaps you started your response prior to the complete END of the message. I've had that happen and found (quote) below where I have typed my message.

However, the comps you say you would rather use are not arm's length transactions. They involve a land sale at some point several years ago and then a contract to build a house. That is not a market transaction.

Correct! I agree with Mike.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I'd make sure to point that out too in the report. The resales would be the real "market value" indicators. Don't let some reviewer play 'gotcha' and say you didn't find more recent sales.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
....then made a second transaction to build the home on the property that closed within the last 3-4 months.

Obviously, I would rather use the most recent sales, however, can I? and How do I determine the sales price or adjustment for land owned?

The sales office in the neighborhood is where I got my info from.

A transaction is not always a sale.

You should not consider the recent "transactions" as market sales/comparables. Use the "sales", not the assembled comps, i.e., the builders contract on a vacant lot.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
What can you currently purchase a property there for? What are the current and expired listings?

No, you cannot create 'sales' from combined lots and building contracts.
 
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