Site Adjustments

[Laryssa W]

Can anyone recommend how to do a site adjustment. My mentor used appraised land value as an indicator to a site adjustment but I am having trouble determining how to actually make a site adjustment. Anything I can set up in Microsoft Excel works best for me. Also, as a newly certified appraiser, I welcome any suggestions/recommendation on top course providers that offer online classes on supporting/making adjustments.

Thanks

 

[Tom Woolford]

I usually download sales info from MLS and cut/paste or export to excel. (you can probably get the data from the county as well). Clear out the outliers. Then I calculate price per acre, and graph by PPA and site size, then a 2nd graph of PPA over time. This identifies market trends and the Principle of diminishing returns if present. It usually is. Just making a straight line adjustment is not credible in my opinion.

 

[CANative]

Site adjustment or land area adjustment?

 

[Laryssa W]

Site adjustment or land area adjustment?

Looking for site (i.e. sqft or acre) type adjustments.

 

[Laryssa W]

I usually download sales info from MLS and cut/paste or export to excel. (you can probably get the data from the county as well). Clear out the outliers. Then I calculate price per acre, and graph by PPA and site size, then a 2nd graph of PPA over time. This identifies market trends and the Principle of diminishing returns if present. It usually is. Just making a straight line adjustment is not credible in my opinion.

Thanks Tom, I like that. I you have a sample you can attach, I'd love to see it. I am a visual learner. Thanks

 

[CANative]

site (i.e. sqft or acre)

The terms are not necessarily interchangeable. That's what makes it so difficult. Say you have two ten acre parcels. One is flat and one has steep slopes. One is a farm and the other is a residential lot with views. Site vs. Land area.

The spreadsheet in Excel is one good method. But it takes a lot of additional analysis and 'splainin' to make a convincing argument either way.

Here are screen shots of the lot sales exported to Excel and then formatted and pasted into Word for use as an exhibit.

 

[DWiley]

The terms are not necessarily interchangeable. That's what makes it so difficult. Say you have two ten acre parcels. One is flat and one has steep slopes. One is a farm and the other is a residential lot with views. Site vs. Land area.

The spreadsheet in Excel is one good method. But it takes a lot of additional analysis and 'splainin' to make a convincing argument either way.

Here are screen shots of the lot sales exported to Excel and then formatted and pasted into Word for use as an exhibit.

Agreed. Can be quite complex. One site may be worth X and another Y, but how much of the difference is attributable to size, to topo, to view, to location, etc. No one-size-fits-all answer.

 

[andrew81]

land is vacant

a site has improvements to prepare it for its intended use

I welcome any suggestions/recommendation on top course providers that offer online classes on supporting/making adjustments.

Land and Site Valuation | McKissock Learning

Land and site valuations have a number of unique factors that the appraiser must take into consideration during an evaluation. Understanding what makes land and site appraisals so unique will help you adequately appraise these properties — a skill which may keep you in high demand with a variety...

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[Basically Rectangular]

If you can derive site values for your comparable sales, then you can examine the difference in comparable site values / difference in comparable site sizes. This will give you supportable site adjustments. I do this in addition to the regression analysis of larger data sets.

 

[Andrei Fin]

Make the adjustments you are confident about first, then make the site adjustment that brings the adjusted range down as small as possible. If the comps with larger site have adjusted below the comps with smaller site, then you went too far.