Narrative appraisal for 3 properties (land)

[Johnny Knucks]

I have 3 parcels which I have been contracted to appraise. I am leaning towards a narrative appraisal, since suitable comparables do not exist in the market area. One is 1/4 acre, non-bulidable but has road access. Another is around 5 acres, also non-buildable. The third property is buildable, 17 acres most of which is in forest preservation, but needs a road and electric. The problem with this property is that it is landlocked, and no road exists to the site. To build a road would cost an estimated $250k. This is for a divorce settlement. I have a fair idea of what the properties may be worth, but should I include all three of them in a narrative appraisal, or do them separately? My choice is to do them together, but they would not necessarily have to be sold together.

 

[JTip]

Three parcels that are apparently not contiguous per your limited description.

Each gets its own report and own H&BU analysis.

Better do your homework on landlocked parcels. PA allows the court (PA Private Road Act) to provide access via neighboring land at the expense of the property owner (survey, permits, etc). Building a road doesn't matter, establishing a legal access does.

 

[J Grant]

I have 3 parcels which I have been contracted to appraise. I am leaning towards a narrative appraisal, since suitable comparables do not exist in the market area. One is 1/4 acre, non-bulidable but has road access. Another is around 5 acres, also non-buildable. The third property is buildable, 17 acres most of which is in forest preservation, but needs a road and electric. The problem with this property is that it is landlocked, and no road exists to the site. To build a road would cost an estimated $250k. This is for a divorce settlement. I have a fair idea of what the properties may be worth, but should I include all three of them in a narrative appraisal, or do them separately? My choice is to do them together, but they would not necessarily have to be sold together.

The 3 properties are so different from each other that imo would be better to appraise each parcel separately.

 

[George Hatch]

You can do a single report but that makes it more difficult for the reader to keep everything straight. I would do separate reports because that's easier for me to write and easier for them to read. Mostly easier for them.

You can do this on a form and add your explanations in an addendum. You don't have to write a narrative. I almost never write narratives for land unless the situation involves more than just the land valuation itself. I'm doing one right now on a residential-zoned parcel that's good for a 6-unit subdivision or condo project. On a form.

 

[Terrel L. Shields]

To build a road would cost an estimated $250k.

How fricking long is the road?

 

[TerryRohrer]

How fricking long is the road?

I don't think it is in Arkansas!

 

[Terrel L. Shields]

I don't think it is in Arkansas!

I've been to Maryland. Its mostly W. Virginia East...

 

[sputnam]

I have 3 parcels which I have been contracted to appraise. I am leaning towards a narrative appraisal, since suitable comparables do not exist in the market area. One is 1/4 acre, non-bulidable but has road access. Another is around 5 acres, also non-buildable. The third property is buildable, 17 acres most of which is in forest preservation, but needs a road and electric. The problem with this property is that it is landlocked, and no road exists to the site. To build a road would cost an estimated $250k. This is for a divorce settlement. I have a fair idea of what the properties may be worth, but should I include all three of them in a narrative appraisal, or do them separately? My choice is to do them together, but they would not necessarily have to be sold together.

It sounds like three appraisals. That doesn't necessarly mean you have to deliver three separate appraisal reports. I had a divorce assignment that was 65 properties. I delivered one (very long) narrative report. Each property had its own section and its own opinion of value. There is no reason you can't do the three parcels in one report.

 

[Johnny Knucks]

Three parcels that are apparently not contiguous per your limited description.

Each gets its own report and own H&BU analysis.

Better do your homework on landlocked parcels. PA allows the court (PA Private Road Act) to provide access via neighboring land at the expense of the property owner (survey, permits, etc). Building a road doesn't matter, establishing a legal access does.

Two of the parcels are contiguous. I'm not sure if the small parcel near the road allows for the owner of the second parcel to have access via an easement, but if both parcels were purchased it would be a no-brainer. The third parcel is not contiguous, but is said to have access through a public utility. That's the parcel which would have some real value, as it could be built upon. The easiest access would be through the adjacent farm which is owned by the spouse, who deeded the land to the ex and their daughter. A road already exists through the property, but the other party says that he'll refuse to grant an easement. It's a great tip to suggest that the state could force the property owner to grant access through the existing road which abuts the property. This is in the state of Maryland in Baltimore county. My hunch is he wants to settle and buy the wife out for as little as possible. I may ultimately decline the assignment due to too many variables, and the likelihood of being dragged into a lawsuit. Not worth it at this point IMO, but I'm still considering doing it. I like a challenge, but not at the cost of that.

 

[JTip]

A road already exists through the property, but the other party says that he'll refuse to grant an easement.

Can't refuse a prescriptive easement, if that applies.

If there is a current attorney involved, get together to create the engagement letter/assignment conditions to cover all the bases and prevent any variables popping up. Establish a fair hourly court payment if needed.

If you have the time and they have the money, I wouldn't be afraid to do it and do it well.