iyo, How diminished is the Utility...

[Christine Marie]

as an experiment [and as promised], i have dug this bone back up, however, this experiment is from a different perspective entirely.

Would like input from others on there take on the attachment [which is a copy of an actual request letter] and further thoughts regarding the request.

If the letter itself, is not clear enough..... allow me to make crystal clear, This is Leasehold land.

 

[MS Rebel]

http://www.sos.state.ms.us/PublicLands/16th/16l_faq.asp

Very interesting. I look forward to the replies. What a fun order Tina!!!! (NOT)

 

[Christine Marie]

thanks for the quick response, girlie....

thought it might make for a good rainy Sunday morning/afternoon/evening topic....

i am anixously awaiting other replies.....

 

[Terrel L. Shields]

I assume there is a house on it. I assume that you can estimate the value of the house. Therefore, the problem is to value the site. The site is leased. Do they pay monthly rents? No rents? How many years remaining in the land lease? It the lease longer than the economic age of the house? A-find other leased land that sold. This will take a lot of interviewing. or, B-make an adjustment. Perhaps polling folks in the biz to estimate the contribution of the site [as leased]

Perhaps income adjust. House w/ fee simple similar sold for $84,000 and is leasing for $600/mo. Subject lot is leasing for $60/mo. Rent multiplier for comp is 140.
$84,000 for the comp. 60 x 140 = $8,400 84,000 - 8,400 = value of comp house in the overall rent = $75,600. 1,200 SF = $63/SF. Your subject is say, 1300 SF, thus it is worth 1300 x 63 = $81,900, or any other way you want to machinate the numbers...you are dividing the contributions between land and improvements.

 

[Christine Marie]

I assume there is a house on it. I assume that you can estimate the value of the house. Therefore, the problem is to value the site. The site is leased. Do they pay monthly rents? No rents? How many years remaining in the land lease? It the lease longer than the economic age of the house? A-find other leased land that sold. This will take a lot of interviewing. or, B-make an adjustment. Perhaps polling folks in the biz to estimate the contribution of the site [as leased]

Perhaps income adjust. House w/ fee simple similar sold for $84,000 and is leasing for $600/mo. Subject lot is leasing for $60/mo. Rent multiplier for comp is 140.
$84,000 for the comp. 60 x 140 = $8,400 84,000 - 8,400 = value of comp house in the overall rent = $75,600. 1,200 SF = $63/SF. Your subject is say, 1300 SF, thus it is worth 1300 x 63 = $81,900, or any other way you want to machinate the numbers...you are dividing the contributions between land and improvements.

Thanks for the input Terrel., i highlighted some of your assumptions that are not applicable for this assignment.

Valuing the land only, the lease, will be a result of my determined 'value', the length of the term in this particular classification is 40 years. If they sell it, there would be re-appraisal and new 40 year lease created for the new owner....

i never said this was going to be an easy topic..... But i welcome any and all input.....

 

[Otis Key]

Sooo, we can only AssUme certain details from what you posted (hint - hint -- not enough).

Dear Appraiser:
In accordance with your agreement to perform land appraisals on Sixteenth
Section lands for Lxxxxxxx County Schools, it is request that you make an appraisal on
5.10 acres more or less, in Section 16, Township 28 South, Range 42 West. This tract is
classified as "farm Residential" according to the former lease. Enclosed is a copy of the
Warranty Deed and the former lease agreement.
As you know, the lessee does not hold title to the timber growing on this land and
title to the underlying minerals are vested in the State of Mxxxxxxxxxx.
Please contact John Doe at phone number. The physical address is 123
Complicted Issue Street, when you make your physical inspection.​

AssUmptions:
1.) 16th is you client
2.) Intended use - hmmmmmmm - missing
3.) Intended user/s - well 16th looks like one - who else
4.) I see you said no improvements to Terrel, so what would be the intended use of the site
5.) Have you developed your SOW enough to answer these?

BTW, & FWIW, I don't accept these types of assignments.​

 

[Christine Marie]

Sooo, we can only AssUme certain details from what you posted (hint - hint -- not enough).
AssUmptions:
1.) 16th is you client
2.) Intended use - hmmmmmmm - missing
3.) Intended user/s - well 16th looks like one - who else
4.) I see you said no improvements to Terrel, so what would be the intended use of the site
5.) Have you developed your SOW enough to answer these?

BTW, & FWIW, I don't accept these types of assignments.[/left]
[/font]

Thanks for the response O.K.,

i will try to elaborate more clearly: #1) is a correct assumption; #2) and #3) are essentially combined, in that the purpose is to determine the fair market value AND the annual fair market rent on the 'leased land'; #4) there are seven different kinds of 'land classification's' and the use is specific to the type of classification; lastly as far as #5) I hope so, i have had help in that area and/or guidance from several of You peers, as well as my own ability i have developed to c.m.a., But, ultimately, that question is the hardest of all to answer.

i like your btw and or fwiw, however, at this point, that is not an option for me at present....

 

[Mike Boyd]

Requires too much thought for Sunday during the playoffs.

 

[Christine Marie]

Requires too much thought for Sunday during the playoffs.

touche', Mike....

 

[MS Rebel]

Ok, more questions.

Is the property close to other commercial/residential uses or is it in the middle of nowhere? (lots of 16th section in MS in the middle of nowhere - or in a rinky-dink town that's run down and seen better days in the 1800's)

HBU will be the doozy if you're in the middle of nowhere. Can't they give you the order with 500 acres instead of 5?

Is there a national forest or hunting club adjoining the acreage? (that would also be nice)

farm/residential ..... hmmmmm, sounds like it's in the middle of nowhere to me. No timber or mineral rights ..... no structure on the property ..... getting worse all the time. We have a house down here on 16th section that has been on the market for over a year .... the realtor just can't understand why someone doesn't want to buy it.

What's next door?