Reporting Of Prior Comp Sales

[SEW24]

Is the sale of the vacant lot from the developer to the builder prior to the construction of a new house considered to be a prior sale?

 

[Terrel L. Shields]

Yes.

 

[reviewbe]

And, it can also be good info if you are including a land value, or to tuck away in your files to draw upon when you do have to estimate land value. Agree that you are required to report and analyze the transaction, but even if you weren't required to, it's one of those things that you ought to.

 

[KenAZ]

Typically it is a bulk sale of vacant lots, or a large parcel that is later subdivided. I just place a comment that the previous sales price of the subject was a bulk land sale before the subject was constructed.

 

[Terrel L. Shields]

There is a Q and A that directly addresses this in USPAP

 

[KenAZ]

There is a Q and A that directly addresses this in USPAP

And the answer is?

 

[Terrel L. Shields]

And the answer is?

Yes, you report the sale.