Land w/cabin vs home w/land

[Mark K]

We see the same thing around here but its usually ag land with an old house.

80 ac. good ag land worth $640K.

80 ac. good ag land with old, livable farmhouse, worth $640K. The improvements, old house, old barn, etc., often contribute very little or nothing to the overall value.

If the house is somewhat newer I'll do a depreciated CA and include the improvements at their depr. value as a line item adjustment on a land form or brief narrative.

 

[BRCJR]

In the two states where I am LICENSED that would be a complex appraisal beyond the scope of LICENSED APPRAISERS license.

What do you deem complex about this?

 

[Meandering]

What do you deem complex about this?

The highest and best use analysis is a start.

240 acres might have a variety of uses available, just depends. Not all large acreage is available for the same uses. Topography, location, wetlands all have to potential impact or not impact large acreage, so when considering comparables, the potential uses of each parcel come into play when deciding adjustments. It is complex because the thought processes and research are more complex. If the OP could find a comparable sale with a similar age and quality home on 175 acres will there be a GLA adjustment and an acreage adjustment? and how about a sale of 300 acres without a house? These are all considerations above a typical residential appraisal.

 

[Peter LeQuire]

Cabins - another perspective.

 

[BRCJR]

The highest and best use analysis is a start.

240 acres might have a variety of uses available, just depends. Not all large acreage is available for the same uses. Topography, location, wetlands all have to potential impact or not impact large acreage, so when considering comparables, the potential uses of each parcel come into play when deciding adjustments. It is complex because the thought processes and research are more complex. If the OP could find a comparable sale with a similar age and quality home on 175 acres will there be a GLA adjustment and an acreage adjustment? and how about a sale of 300 acres without a house? These are all considerations above a typical residential appraisal.

Not enough information to answer both parts of the first question (GLA).

As to the adjustment for acreage, it depends.

Economies of scale could come into play and an adjustment could be warranted.

The functional utility (pasture/woodland/cropland/recreational/etc.) of the acreage could be a different issue regarding an adjustment.

If you have truly comparable sales does the "complexity" issue diminish, in your opinion?

 

[Meandering]

Unless you are in the Prairie define this:

If you have truly comparable sales

.

 

[BRCJR]

Unless you are in the Prairie define this:

.

.....or rural mountain land....

I believe you to be smart enough to know what I meant....very similar properties.

I asked if you have "truly" comparable sales does that diminish the complexity of an assignment.

Straight forward question. Can you answer it?

 

[redfish]

House on 200 acres is called a "house" by the owner when its the primary residence of the owner.


Cabin on 200 acres is a called a "cabin" by the owner when the cabin is not the primary residence of the owner.