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surplus land - hill included with a tract home

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shortlahore

Thread Starter
Freshman Member
Joined
Sep 3, 2008
Professional Status
Certified Residential Appraiser
State
California
I am appraising a tract home in a neighborhood with a value range $250,000 to $280,000. This particular property has a lot size of 1.86 acres when similar properties are built on 6000 sq ft - 7000 sq ft lots. Now the effective lot size for this property is also somewhere around 6500 sq ft. because it is built next to a hill which is included in the subject lot. Does the surplus land need adjustment when I do not see any utility? If you think it should be adjusted for, then, what is a reasonable adjustment?
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
These are a pain in the butt. We have a lot like that here but generally the surplus land is wetlands, conservation or a lake. I always search as long and as hard as possible for the last such sale to close and compare that to the other sales from that time in order to extract a reaction. Most of the properties here have a market reaction for the surplus and it is usually higher than you'd think because it offers privacy, scenary and utility for family and play time type stuff.
 

Kelley Christensen

Freshman Member
Joined
Aug 31, 2005
Professional Status
Licensed Appraiser
State
California
Go back in time or out farther in didtance to find a comparable sale with a larget lot size to justify that the land is surplus and does not attribute value to the property. If it turns out that it does add value, you can contact the agents on the comparable and ask their "expert" opinion on the estimated value of the excess land.
 
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