Land Appraisals

[Shan Srivastava]

I am doing some analysis on land in my geographic area and would like to create a spreadsheet to analyze land sales. I am wondering why appraisers charge more for land appraisals than an SFR?

Also, is there any software for the specific purpose of compiling land sales(criteria zoning, etc.) into a data base and then being able to plot on a map to see if roads, infrastructure pass nearby?

 

[Terrel L. Shields]

I don't necessarily charge more. Simple lots, single are about the same as a SFR, maybe less. Per lot in a Lot development appraisal is pretty cheap on avg. small subdivision. I don't know how people can do a lot development appraisal for $600-1200 like i see so many do. If you gathered a lot of data on an ongoing basis, maybe, but I don't know any niche that provides that much work in a year.
As for large land tracts, ranches, etc. scarcity of comparables might mean I travel 40-80 miles just to get a comp. So time = money.

Also, correct or not, there is perceived to be a liability issue. A lot of that relates to lying borrowers who try to fool appraisers with incorrect legals, or claims of access where none exists and, alternatively, speculators abound in land deals as opposed to SFR. Anticipating a market too early and you are setting on a plot for half a lifetime and looking for someone to blame for your stupidity.

Excel / Quattro can easily be created to make simple spreadsheets of land sales. Using a simple map you can make qualitative judgments about topography, soils, location, access, utilities available, composition, etc. County soils maps make good references for engineering and agricultural features of particular soil types.

 

[Big ole Boy]

Currently I am working on a 220 acre parcel -

I am going to do the appraisal under an MAI -

Your fee is based on so many more possibilities ....

Land size and zoing along with having the available resources to find like kind comparables -

understanding the market area

understanding the most probable type of buyer

topography

uplands vs lowlands

- I am looking at doing a narrative for $2,500 or so.

 

[Abester]

I agree.

Even a simple farm appraisal isn't really that simple.

 

[Mark K]

Highest and best use analysis is often the most time consuming part of a land appraisal, especially if the land is not platted or in a subdivision. Can you divide it and if so whats the most marketable size, what does planning/zoning dept. say about subdividing, what is typical development cost to split into multiple lots, etc.

Sometimes I'll charge 50% of SFR fee for a lot in a platted sub with lots of sales. Other times I'll charge 3X SFR fee for 2 acre lot in the country.

I recently completed a report on a 850 acre farm that was fairly straightforward. Farmground H&BU even though it was in 13 parcels. I'm now working on a 2 acre tract with easement access that is a royal pain. Not platted yet; depending on the year it was parceled out will depend on if its a legal building lot; uncertain if soil is suitable for septic system; water wells are not a sure thing in that area; easement access is not recorded. PITA.

As far as spread sheets, I made one up using Excel. Took a couple of hours but it works out well. I don't know of anything that will do what you mention with the map overlay, etc.

 

[xm39hnu]

Use the tax maps and a county road map for proximity to transportation infrastructure. Main high voltage transmission lines are usually shown on tax maps. USDA has soil maps as well as a soil analysis booklet that tells you what LvE soil is (Luverne E) and the tables tell you how well it perks, how much swell-shrink potential it has, what types of construction are suitable, etc. A gold mine for land appraisals.

Use excel or quattro pro for analyses, unless you can program. If you can program, then download and use R (www.r-project.org). Steep learning curve, though. Makes awesome charts.

 

[Thomas N. Morgan]

I used to sell vacant land. Getting to know all about a piece of land is whole bunch harder than sizing up a house.

You can make big mistakes when buying or lending on land.

 

[Steve Wyrick]

I am wondering why appraisers charge more for land appraisals than an SFR?

Depends on the type of land that your subject is. It has been my experience that with the exception of a residential lot zoned for residential use that most other types of vacant land appraisals are complex assignments and highest and best use is paramount in the determination of value. There can be lots of factors depending on the type of vacant land.

In commercial work, front footage, lot depth, proximity to utilities, neighborhood analysis, environmental (traffic) concerns, just to name a few. God forbid that your subject is part of an assemblage or plotage situation.

In ag work, type of soils, soils permeability, soil structure, soils ability to raise which crops, soil compaction, irrigation water sources, irrigation water cost and restrictions, elevation of property, topography of property, zoning just to name a few.

In subdivision land, what stage of development is the land in, farmland converting to 1st step of subdivision, parcel has approved paper lots in place, parcel has off-site improvements (utilities to frontage of property or does developer have to pay for 1 mile of public utility work to get utilities to site), onsite improvements, roads, streets, curbs, gutter, sidewalks, etc in place, is subject a bulk sale of lots in various stages? I really dislike subdivision vacant land appraisals, developers hide public information and don't talk, afraid the competition will beat them.

Yeah, vacant land appraisals are much more complex than most appraiser think that is why for anything over a single family vacant lot you need certified appraisers.

As for a program. Use Excel and tailor it for your specific subject. I have done many of these and no two have ever been alike.