Appraisal request is for cash out refinance to be reported on form 1004 for a single family residence.
I have not accepted the assignment as yet.
Per the zoning office, the land is zoned agricultural and the residential use is permitted. Approximately 3 of the 5 acres is tillable crop land. My thought is that this will have a different value than wooded or scrub brush comparables.
My local 'sounding board' appraiser says to just mention that there is tillable acreage but that it is insignificant and simply ignore it with regard to selecting comparables. He says crop rights rent for roughly $25 per acre per month and because this is such a low amount on a yearly basis that is does not have an impact that needs addressed in the sales grid.
If this is a complex assignment, as I think, then I will turn it down. If it is 'simple', as he says, then I will do it. What would you do?
I have not accepted the assignment as yet.
Per the zoning office, the land is zoned agricultural and the residential use is permitted. Approximately 3 of the 5 acres is tillable crop land. My thought is that this will have a different value than wooded or scrub brush comparables.
My local 'sounding board' appraiser says to just mention that there is tillable acreage but that it is insignificant and simply ignore it with regard to selecting comparables. He says crop rights rent for roughly $25 per acre per month and because this is such a low amount on a yearly basis that is does not have an impact that needs addressed in the sales grid.
If this is a complex assignment, as I think, then I will turn it down. If it is 'simple', as he says, then I will do it. What would you do?