• 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.

Not competent for subject.what about comp?

Status
Not open for further replies.

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
My subject is 160 acres with panoramic ocean views in a very remote area. I'm really having to dig up some very different sale comps and going back many years. The only recent sale I have to work with closed in January 2008. It's 400 acres and has ocean frontage. It also has about 10 million board feet of timber of which 4 million feet is second and third growth redwood and about 3 million feet of old growth. The subject has about half a million feet of second and third growth with a small stand of old growth.

I talked to the agent who listed and sold the property (full commission on a 6.5 million dollar sale!!!) and he said that the appraiser valued the timber at 3.5 million and the land at 3 million. There were a lot of old buildings (forestry service) and a small house. These buildings had very little value relative to the land and timber. The buyer of the property is an organization that does conservation work.

I'm certainly not qualified to value timber (although I've had to deal with it on a residential level) but can I use the figures supplied by the agent (and the appraiser who I also talked to) to make an adjustment to my subject property?
 
I don't even think that I'm qualified to offer an opinion here. :icon_mrgreen:

Why don't you partner up with someone who has experience valuing timber? I don't know if I would ever just use any figures provided to me from any agent for any reason without seeking some kind of backup support. I took a class with a guy last year who worked for a company where they valued forests/timber/etc... except he was from NC. He told me that his company once valued something like 3.5 million acres of timberland... :Eyecrazy:

When in doubt, find someone more qualified than you are!
 
Are you related to Ray?? I'd get the opinion of value of the lumber, from someone that deals in Timber, they'd give you the value AFTER cost of extraction. Course before anyone ask, did this assignment come from a AMC??

This looks like an assignment for your dad & Mr Hatch.
 
I think I'm qualified to value the subject property which doesn't have an excessive amount of commercially merchantable timber. It's just that this one sale is bugging me and I wouldn't even consider it except that it's recent, nearby (40 miles) and has some similarities. If I make the adjustments I have in mind it dovetails with the other market value indicators I'm coming up with.
 
Reading some of the assignmeents you get, I'm sure your qualified!! I'd just make sure there was some very supportable evidence in the file. A regestered Forrester would be a better opinion, than a RE Agent, or another Appraiser.
 
Greg,

Your status says "certified residential". I am unfamilar with California appraisal law so ask from a point of ignorance. How does this type of property fall within your license level? I know in Florida it probably would not, because I assume the HBU is more than 4 units.

How does CA deal with such an issue?
 
Greg, when I do land with timber I call a few folks that I know that cruise timber for a few of the big timber companies and ask for a rough number. They like the heads up on a potential timber buy so its free. They also are almost always familiar with recent comparable sales with timber and the timber value of those properties as well since they bid on almost every thing that comes up in a 50 mile or so radius. Of course I disclose the source of that info in the report, and that it was a freebie "rough" estimate.
 
Large lot zoning in these areas. Minimum lot size of 160 acres. Residential density is one dwelling per lot plus and accessory dwelling unit (except in the coastal zones where the additional unit cannot have a kitchen or cannot otherwise be used for full time occupancy... the subject is in the coastal zone). I've done at least 200 appraisals on properties over 100 acres and up to 300 acres.
 
WOW. Minimum lot size of 160 acres. That answers it, get a Section build a 4 unit rental property. I guess side yard setbacks are not a big issue. LOL
 
Reading some of the assignmeents you get, I'm sure your qualified!! I'd just make sure there was some very supportable evidence in the file. A regestered Forrester would be a better opinion, than a RE Agent, or another Appraiser.

I agree with Karl. You might talk with the appraiser who estimated the comp's timber value. Where did HE get it? There are all kinds of costs involved in a timber harvest and the more timber there is, the greater those costs. A mis-quote or an incorrect adjustment could make a huge difference.

I have never attempted an appraisal involving Timber.
 
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
Back
Top