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Some Comps Just Ain't Worth The Effort

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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I found a comp...but it has 295 acres, no make that 279 acres. The buyer says 280... But the net acreage is 225 because the rest lies in the Arkansas River...which has some value because they have the mineral rights...in the middle of a gas field

So its an auction barn (the object of my affection) but also is the local race track too... say what? I think I will just pass and go find another comp. (the yellow stripes are the sale)

Moffit bottom2.JPG
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
sure makes me appreciate all my simple little houses....
 

miktay

Senior Member
Joined
Jul 3, 2007
Professional Status
Certified Residential Appraiser
State
Texas
Is that comp in OK or AK?
I sure hope your getting paid well!
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Not every sale is a comp, and if you decide to exclude a sale (or listing ) because the property is not competitive /similar enough to be a reasonable substitute for subject, it is indeed not a "comp".
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Is that comp in OK or AK?
AK? Alaska? Nope. It is on the border between Arkansas and Oklahoma. Over 40 acres is under the river...permanently. Not just a flood zone, there is a navigation system so it is in a "flood plain" but can rarely be flooded. Very productive land for crops or Bermuda grass. The buyer bought it for the cattle auction barn but it has all these moving parts. I tried to break out the land value and then discovered the motocross park lies on the property too...including the grandstands and announcers booth, concession, etc. There are also some stables there not part of the auction. Way too many moving parts to really be very useful. I listed it with sales but I am not going to give any weight. I found five comps over a 40 mile x 80 mile "market area"... which was very good with each being either this year or last as sales.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
AK? Alaska? Nope. It is on the border between Arkansas and Oklahoma. Over 40 acres is under the river...permanently. Not just a flood zone, there is a navigation system so it is in a "flood plain" but can rarely be flooded. Very productive land for crops or Bermuda grass. The buyer bought it for the cattle auction barn but it has all these moving parts. I tried to break out the land value and then discovered the motocross park lies on the property too...including the grandstands and announcers booth, concession, etc. There are also some stables there not part of the auction. Way too many moving parts to really be very useful. I listed it with sales but I am not going to give any weight. I found five comps over a 40 mile x 80 mile "market area"... which was very good with each being either this year or last as sales.
C'mon Terrel, just used paired sales and make an adjustment....lol
 

TXTea

Sophomore Member
Joined
Aug 25, 2016
Professional Status
Certified General Appraiser
State
Texas
I find that when a potential comparable is just too involved relative to what I'm appraising, it simply isn't worth the effort and probably not comparable at all. Pass.
 

Sid Holderly

Senior Member
Gold Supporting Member
Joined
Jun 16, 2005
Professional Status
Certified Residential Appraiser
State
Indiana
Mine today, a 1957 ranch home on 40+ acres with some good tillable land, trees, and pasture. I found 5 sales on more than 7 acres in a 30-mile radius. It takes a little more work and I am glad it is not for a loan. I still prefer to do these over a house on a small town lot for an AMC. I have just as many comps as I would for a small town, just a little further away.

Some comps look good at first sight, but just do not work.
 
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