Lot Size Adjustment?

[Fred]

Yes .. lets say you have three comparables .. ok ...


No. Price Allowable Units $/Unit
1 $60,000 6 $10,000
2 $50,000 4 $12,500
3 $90,000 9 $ 9,000

And you conclude from this analysis that the land value of the subject is therefore $10,000 per unit or $80,000 ($10,000 x 8 allowalbe units)

Adjustments would be

1 +$20,000
2 +$30,000
3 -$10,000

What would be the reason for adjusting sales 1 and 3 at $10,000 per buildable unit, while adjusting sale 2 at only $7,500 per unit.

 

[PropertyEconomics]

What would be the reason for adjusting sales 1 and 3 at $10,000 per buildable unit, while adjusting sale 2 at only $7,500 per unit.

It was a typo Mr Santora .. thank you for recognizing that and pointing it out. My apologies. I have corrected it ... the 3 and the 4 are side by side .. imagine that ... :new_sleeping: . Again my apologies.

Also as an aside .. I very well may make this "size" adjustment as an adjustment for allowable units .. and list 8 for the subject and those for each of the comparables and make my adjustments on that basis rather than listing the "sizes" of the subject and each of the sales. I think either way is correct .. its just something that occurred to me when you made the mistake notice. Thanks again.

 

[Michigan CG]

Dang that PE guy...he has it right in my opinion, but beat me to it. Price per unit.

 

[Fred]

It was a typo Mr Santora .. thank you for recognizing that and pointing it out. My apologies.

No problem. I was also wonderng about sale 3 $90,000 for 9 building units. Wouldn't that be 10k per unit, not 9k?

 

[Michigan CG]

#14 Yesterday, 11:36 PM
Steven Santora
Join Date: Jan 2002
Professional Status: Certified General Appraiser
State: New York
Posts: 7,925



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Quote:
Originally Posted by PropertyEconomics
It was a typo Mr Santora .. thank you for recognizing that and pointing it out. My apologies.

No problem. I was also wonderng about sale 3 $90,000 for 9 building units. Wouldn't that be 10k per unit, not 9k?
__________________
Valuo Ergo Sum!

Nobody wants "an appraisal:" they just want to know what it's worth.


Can you guys sign a truce already.... OR do I need to pay a cover charge for the entertainment?

 

[Vegan702]

I have never had something like this, but wouldn't it be outside the capabilities of a licensed or cert. res. appraiser and would require a CG assuming licensed can't do commercial? I always thought res. could only do up to 4 units?

 

[Couch Potato]

I have never had something like this, but wouldn't it be outside the capabilities of a licensed or cert. res. appraiser and would require a CG assuming licensed can't do commercial? I always thought res. could only do up to 4 units?

Not outside the capabilities, but could be out of license scope if the transaction value is over $250,000 and it is a FRT given the HBU is an 8 unit dwelling. However, the subject is currently a 2 unit dwelling so I don't think it is a problem.

 

[PropertyEconomics]

#14 Yesterday, 11:36 PM
Steven Santora
Join Date: Jan 2002
Professional Status: Certified General Appraiser
State: New York
Posts: 7,925



--------------------------------------------------------------------------------

Quote:
Originally Posted by PropertyEconomics
It was a typo Mr Santora .. thank you for recognizing that and pointing it out. My apologies.

No problem. I was also wonderng about sale 3 $90,000 for 9 building units. Wouldn't that be 10k per unit, not 9k?
__________________
Valuo Ergo Sum!

Nobody wants "an appraisal:" they just want to know what it's worth.


Can you guys sign a truce already.... OR do I need to pay a cover charge for the entertainment?

Mr Evans ... the truce was signed long ago .. I was sincerely apologizing for the typographical mistake .. .and it was typographical.
Mr Santora was merely being prudent in checking my methods and it appears he isnt in disagreement with you and I that measurement on a price per unit basis is proper.
Peace to you as well .... and by the way .. the way business is going these days .. you probably cant afford the cover charge for enterainment as good as mine and Mr. Santoras ... just a hunch ....

 

[PropertyEconomics]

Not outside the capabilities, but could be out of license scope if the transaction value is over $250,000 and it is a FRT given the HBU is an 8 unit dwelling. However, the subject is currently a 2 unit dwelling so I don't think it is a problem.

I agree with you Couch ... doing the highest and best use analysis on this two unit property and concluding the highest and best use would be for addition of six more units .. or removal of the existing two and replacement with eight units .... would not lie outside the limits imposed by the license level.
The appraiser isnt appraising 8 units but merely appraising 2 units and identifying additional value attributable to underutilized land area in my opinion.
This was a good post with thoughtful answers.

 

[Mike Garrett RAA]

Ditch the damn yellow....I can't see it!

First consideration, vacant land sales to support a higher value.

Second consideration, what PE said.

Primary thought...is a lot that is 40% larger worth more? Sounds logical to me. Is the entire site usable? IN MY MARKET we often see larger lots because they are not all usable so no increase in value.