Site Adjustments

[alebrewer]

All large acreage sales are 700-1100 SF larger. No applicable sales that bracket.

Of course your analysis of highest and best use 'as improved' might not be affected, but this statement may point to what the ideal improvement might be for your site...

 

[J Grant]

What would you do when there is no new or recent construction on 40 acres then?

He is saying the site adjustment is $250k. Probably about the same adjustment when comparing new or recent construction with a 30-40 year old home.

Is a sale of a 30-40 year old home on 40 acres also not a comp for new construction on 40 acres?

What would you do?

I would adjust for age or new and not use new small lot subdivision community homes. It is such a different buyer and underlying land value - typically. I 'd go back 3 years and find the most recent build sale on acreage I could find, and do a new cost approach as support.

Wrt a 250k site adjustment - idk the price range to comment -

 

[Joe Flacco]

I would adjust for age or new and not use new small lot subdivision community homes. It is such a different buyer and underlying land value - typically. I 'd go back 3 years and find the most recent build sale on acreage I could find, and do a new cost approach as support.

Wrt a 250k site adjustment - idk the price range to comment -

So a $250k condition adjustment IS comparable but a $250k site adjustment IS NOT comparable. Gotcha.

 

[J Grant]

So a $250k condition adjustment IS comparable but a $250k site adjustment IS NOT comparable. Gotcha.

Idk what the conditon adjustment is or should be, nor what the price range of the subject is -

 

[Joe Flacco]

Idk what the conditon adjustment is or should be, nor what the price range of the subject is -

You have this stupid belief about what is a comp and what is not a comp. All sales are comps. Some comps are better than others. We work with what we have.

 

[NC Appraising]

You have this stupid belief about what is a comp and what is not a comp. All sales are comps. Some comps are better than others. We work with what we have.

Or are we as appraisers just trying to make the lender happy to avoid revision request? Are we really using sound appraisal theory or just satisfying the client? Square appraisal thru round hole?

Using less comparable sales just for bracketing purposes.

Yes, I'm a hypocrite. I would and do silly things like that. It's not right, but what can you do?

 

[J Grant]

You have this stupid belief about what is a comp and what is not a comp. All sales are comps. Some comps are better than others. We work with what we have.

Stupid- ?
A comp for a subject is supposed to be a property that the buyer for a subject would purchase as a subdistitute. It should have at least the main key areas of similarity - even for custom homes or unique properties - but we are not in that area nor know all the facts or the market - limited input that anyone can give for an internet example,

 

[Joe Flacco]

Stupid- ?
A comp for a subject is supposed to be a property that the buyer for a subject would purchase as a subdistitute. It should have at least the main key areas of similarity - even for custom homes or unique properties - but we are not in that area nor know all the facts or the market - limited input that anyone can give for an internet example,

Yes, stupid.

He has new construction on 40 acres. He has new construction in subdivisions and he has old *** houses on acreage. None of the options are great. But to say that old *** houses on 40 acres are comparable but new construction in subdivisions are not comparable is stupid.

You work with what you have.

 

[J Grant]

Yes, stupid.

He has new construction on 40 acres. He has new construction in subdivisions and he has old *** houses on acreage. None of the options are great. But to say that old *** houses on 40 acres are comparable but new construction in subdivisions are not comparable is stupid.

You work with what you have.

Idkthe age of the comp homes there, but an older house house can be upgraded and remodeled to C 2 condition if need be. I can not imagine the same buyer for a house on 40 acres would bo buy a house on a half acre just because it also happens to be new.

Esp if there are multi-acreage sites they could buy in the area and construct a new home on of similar size to the subject -

 

[Terrel L. Shields]

It's also possible that the valuation of the 120 acres is just not that accurate. The data is just not that good for something like that.

True enough - missing by only a couple of hundred per acre can end up being a lot of money. Truthfully land is just not as likely as a house to be narrowly defined value wise.

Typically it is a completely different buyer.

Yes. The buyer of large lots wants either space, utility as a hobby farm, or simply has a lot of money to keep others from encroaching on their pastoral pursuit.

the improvements don't bracket GLA.

I rarely worry about bracketing size. I prefer worrying about age-quality-condition.

Inaccurate isn't a term that applies to my appraisals

I am always right and never lie...much. Well...maybe a lot on this forum.