Raw Land Vs Improved Land

[kylemakings]

When Appraising Land You Are Somtimes Asked To Appraise Raw Land And Somtimes Improved Land. In A Rural Area A Local Bank Wants To Know What Is Considred Improved Land Due To The Loan To Value. I Understand That Improved Is Land Made Ready For Development Or Agriculture By Clearing Of Trees & Brush Etc. The Bank Said The Land Has Been Fenced And A Tank Has Been Built For Agriculture Use. Is This Considered Improved? What Is The Fine Line Between Raw And Improved?

 

[Mike Boyd]

I would say ANY improvements that is real property make it "improved" rather than raw.

 

[Harve Bean]

IT is improved only if the improvements add value to the raw(nothing on it) land value. Your subject could be called pasture land and it sells for a different amount than land with nothing on it. Does the farmed crop land sell for more than pasture land which sells for more than land with nothing on it? Beware, in my area, farms sell by the price per acre which includes all improvements. A land sale may not be a land only sale.

 

[Ross (CO)]

You're joking, right ?.....or do you also type your reports this same way with every word being capitalized ? !

 

[Mr Rex]

Ross, I wondered the same thing. The reading equivalent of riding on a rough road with bad shocks.:Eyecrazy:

 

[Marcia Langley]

OK, this is getting weird. Periodically we get new posters who capitalize every word. This is such a very odd quirk that I have a hard time believing there are that many people out there that do this.

What are the odds that these are all the same person?

 

[Otis Key]

Rough crowd today..........

 

[Marcia Langley]

There is not much to add to the good responses to his question. So the extremely odd quirk is the most interesting thing to talk about.

Of course it's no skin off my nose if a poster gets a new ID every time he/she posts, it was simply an observation.

 

[Wayne Tomlinson]

In my practice, I consider that improved land typically some sort of improvements which usually means buildings of some sort that have some contribution to the value of the subject.

Also, around here, quite often when driving down the road looking for farm comps, you likely are there when you see a pile of old fence and brush along some part of the parcel. For some reason, the guys with the bulldozers like to leave these piles near the road. Maybe like an advertisement. Perhaps sometime they will put a little sign like the roofers or siding people so the neighbors will know who did it.

Raw land on the other hand, I would consider that to be a property which may or may not have the potential to be developed into something with some higher and better use, or maybe not, but is basically undisturbed from whatever it has been.

This may or may not be worth the usual $0.02

Wayne Tomlinson

 

[kylemakings]

I Did Not Know So Many People Had Issues With The Way This Is Typed. You Would Think If They Had Such A Problem With It They Would Not Take The Time To Respond.

For The Ones That Did Respond With Good Info. I Do Appreciate It.

Thanks