- Dec 1, 2015
- Professional Status
- Certified Residential Appraiser
I'm a bit stuck working on an appraisal of a rural property. It's on 16 acres+/-, and have comps ranging from 5-20 acres. I know each marginal acre is worth less in general, but I am also looking at a situation where because of the rural nature and wide defined neighborhood of the assignment, you have varying values per acre based upon proximity to major nearby market. I can run land sales next to each comp, but market data is thin and inconclusive. Typically, I would just apply an adjustment factor... something that narrows the adjusted value range with a simple per-acre application (as long as there isn't something clearly wrong with the terrain, etc.). Any outliers are almost always due to location after this is applied. I am wondering if this is frowned upon or acceptable form of analysis? It's one of those deals where it's often correct, but I can't put in my reconciliation "applied trial and error site adjustments until best-fit line determined". What say the appraiser forum crew?