• 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 question

Status
Not open for further replies.

Pappraisals

Thread Starter
Freshman Member
Joined
May 1, 2007
Professional Status
Certified Residential Appraiser
State
Missouri
I am doing a land appraisal and there are no comps close - I am using comps 3 - 5 miles away in a suburban area. The active listings and a few sold comps I found are selling for around $82K/acre - when I do my adjustment do I use that or use a contributory adjustment - I know this is a stupid question and I should know it but I haven't done one in forever and I don't want to do it wrong!
 

Annelle

Junior Member
Joined
Jan 26, 2004
Professional Status
Certified General Appraiser
State
Arizona
Partial Quote: "Stephen J. Vertin, MAI;1487110. Six procedures can be used to obtain land value indications-sales comparison, allocation, extraction, subdivision development, land residual technique and ground rent capitalization. Sales comparison rules unless such data is not available then the other procedures are acceptable.
Further, if the comparables were zoned similar to the subject much of what you are saying is intrinsic to the comparable. They are already restricted to similar uses, set-backs, height restrictions, etc., and thereby, reflected in the value."



I am assuming that you are doing something zoned R-1 SFR? I would first try to do an allocation method with similar properties, recently sold, in the same neighborhood. If you have doubts, you can also test your value estimate with an extraction either putting it in the report or keep it in your work file. I tend to do the later. Or use one or two of the comps as a 4th and 5th that is 3-5 miles away to suport your value.

Or... use your comps 3-5 miles away, and then in the addendum use the allocation method supporting your estimate of value.

Be sure to use a price per sq ft vacant as your adjustment basis.

I hope this helps.
 
Last edited:

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
If you've already figured out that land similar to the subject is selling for $82k per acre do you really need to adjust the comps for size? Is the indicator for the subject property $82k * xx acres?
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
If you've already figured out that land similar to the subject is selling for $82k per acre do you really need to adjust the comps for size? Is the indicator for the subject property $82k * xx acres?

Well, if you are using a form report rather than a narrative you have to put something in the grid to account for a higher or lower price for a different size. How else could determine the value per acre?
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
But to answer pappraisals question, you use the contribtory value for adjusting. A one acre homesite for $82,000 does not mean a 10 acre homesite is worth $820,000.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
A "form" is just a convenient way of organizing selected data for easier client digestion.
 

Annelle

Junior Member
Joined
Jan 26, 2004
Professional Status
Certified General Appraiser
State
Arizona
What size parcel are we talking about?
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
There really isn't enough information in your post to provide much help. My questions are: how much land? Is it divisible? and what's the HBU?

If it is a single lot than most of the value is in the homesite with surplus land having minor contributory value.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Be sure to use a price per sq ft vacant as your adjustment basis.
Only use Price per square foot if thats how your market measures value. If its price per acre use that if its front foot price use that.
Never use a method of measurement that isnt recognized by your market.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
A "form" is just a convenient way of organizing selected data for easier client digestion.

You could also say a narrative is a re-write of the form (with maybe some added data).
 
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