• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Land adjustments

Status
Not open for further replies.

Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm doing an appraisal on a home that has beautiful views of Susquehanna River. No sales in the neighborhood with similar location. All lots in the development are sold vacant and then later on, they build the houses, but no resales in the last couple of years.
I have two comps with more land than subject but they don't have any river views...another one of my comps (an outdated one) has similar views with subject but more acreage...When I do my site adjustments, I'm thinking of adjusting more per acre difference for the one with location and view similar to the subject and less per acre for the ones with no view...am I wrong in my thinking? Lots are selling next to the subject for 260K, 270K and 380K for one acre lots...compare to 100K-150K for 3-4 acres lots in other areas

What do you guys think? Can it show as inconsistency in the report?
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Take the one from a couple of years ago and compare it to one without the view on similar acreage from a couple of years ago and apply a percentage adjustment.

It isn't perfect, but it is a starting point.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Why not compare total dollar to total dollar if you have the data to estimate the land value underlying your subject and all your sales.
 

Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Hmm...I'm not sure I follow you ProperyEconomics...
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Subject Land Value ..... $400,000
Comp 1 Land Value ..... $300,000 ... Adjst +$100,000
Comp 2 Land Value ..... $500,000 ... Adjst -$100,000

etc

Estimate the total value for each of the parcels ... your subject and your sales.
 

Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
That's a good idea...thanks!

But then there won't be any location adjustments anymore right?...I would be kind of double dipping...
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
That's a good idea...thanks!

But then there won't be any location adjustments anymore right?...I would be kind of double dipping...


Make it as a site or a location adjustment or explain that it consideres both adjustments in one calculation. If done correctly it will reflect not only size but location as well. When you have such limited data it is obvious that you cant measure each separately with great confidence but you can estimate both with market data.
 

Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Thanks a lot!
 

Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
here is what i got...

-subject has 0.86 acre lot, land value 225K (very desirable location, river view etc)
-comp 1 has 1.12 acres lot, land value 150K (further away from the river) - adj +75K
-comp 2 has 3.82 acre lot, land value 150K - adj +75K
-comp 3 has 5.45 acre lot, land value 100K (middle of nowhere, no views of
anything) - adj +125K
-comp 4 has 8.81 acres lot, land value 600K (same view as the subject) - adj -375K
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks