Land w/cabin vs home w/land

[Tim Schneider]

I'd like your opinion on when a report (which form to use) should be considered a land appraisal with a cabin or a home appraisal with large acres. I'm not really looking for comments about less fee for a land report or that the form doesn't matter.

The subject is a "cabin" (as described by the borrower) with 240 acres of hunting land. I have no issues with the land portion, or even a small cabin for that matter. But the cabin (found this out when I went there) is a 2 story newer stucture, built similar to a Q4 home, with heat/AC, running water, kitchen/bath. Open concept main level with upper loft bunk area.

Basically, what I'm asking is would/have you done something like this on a land appraisal form. Or, do you think that completing on a land form would be misleading?

 

[Mr Rex]

Well, ignoring it sure would be potentially misleading.

 

[Tim Schneider]

Why would I ignore it? It would be listed as an improvement.

 

[Mack McClain]

1004

I would only do it on a land form, if the house was old/run down/not livable. If so, then I would perform a land appraisal and mentioned there is an old/run down/not livable structure on the property. No value was given for this structure.

However, since theres a home...sounds like its livable and worth something, it would be hard to argue against doing it on a 1004 or general purpose form.

 

[Mr Rex]

Why would I ignore it? It would be listed as an improvement.

What contributory value are we talking about? A land appraisal with a house on it may be mis-leading prima facia, without serious discussion with the client or vice versa. When you say 2 story Q4, I would tend to think its not merely "an improvement" but begins to affect H&BU.

 

[Vermonter]

Get this a lot around here. Was told last week "the cabin is ready to be torn down" for a private job....and the "cabin" turned out to be a 2400 sqft timber frame cape built in 2008. It was nicer than my house.

 

[Terrel L. Shields]

What percent of the value would it represent?

If it is more than 20% of the total property value, then I would do an analysis of both. Narrative - The land form is worse than bad to begin with so i would try something else... and there is nothing wrong with the cost approach in those cases. Comp out 3 vac land sales to justify the land value, then cost the building contribution. In the absence of sales, I would be inclined to rely upon the cost approach.

 

[Tim Schneider]

Let's put it this way, I've seen people live in a lot worse. HBU, well it could go either way. It is pretty rural, and would have appeal both as a residence or a weekend/hunting getaway for an out of towner.

 

[Meandering]

I would not put it on a form.

I would do a narrative, as land with a cabin, which if its hunting land, a cabin would be expected anyway, yes?

If you use a form report, which form you use is going to depend on the purpose of the appraisal.


.

 

[Terrel L. Shields]

land with a cabin, which if its hunting land, a cabin would be expected anyway, yes?

Lotsa difference in "Cabins"...