Vacant land appraisal, not so vacant?

[Appraisal Santa Fe]

Well, I've gone back to January 06 and no land sales in the area at all (not even thinking of a structure yet) I'd have to go out 5 miles or so and possibly back further than 06? Yikes!! So no matched pair analysis available. Seems jobs have gotten much tougher these days.

 

[Caterina Platt]

No land sales at all? Good grief. PM me. Let me know where you're looking at. My MLS isn't inclusive of Santa Fe, but there's got to be someone or something we can turn up.

 

[Bama Bayou]

Yes, you can appraise under the hypothetical condition that the land is vacant. State that in the report and just appraise the land.

 

[PropertyEconomics]

Yes, you can appraise under the hypothetical condition that the land is vacant. State that in the report and just appraise the land.

Only if the lending programs allows hypothetical conditions .. which most dont.

 

[PropertyEconomics]

No land sales at all? Good grief. PM me. Let me know where you're looking at. My MLS isn't inclusive of Santa Fe, but there's got to be someone or something we can turn up.

With all due respect, lets hope this isnt reservation land ....

 

[Caterina Platt]

With all due respect, lets hope this isnt reservation land ....

Ewww!

Actually, no that would be easy. Decline the assignment.

 

[Mr Rex]

Only if the lending programs allows hypothetical conditions .. which most dont.

It has been my experience that the limited number of lenders that do loans on vacant land will accept HC's. The OP should check with his client.

 

[The Warrior Monk]

Forget the hypothetical condition...it is used under specific circumstances and the client didn't ask to appraise what doesn't exist. Because the assignment will be easier is not a legitimate reason to use an HC.

The property can be appraised, but there isn't a one-shot answer that solves the problem. HBU, zoning, amount and quality of market data, etc. is going to determine how the problem is solved.

 

[Terrel L. Shields]

If its for lending, its very doubtful you can appraise it as a vacant parcel of land, becuase 1) its not vacant and 2) appraising under the hypothetical condition it were vacant does not typically meet lending guidelines.

If it is for other purposes, ie an estate, land value dispute, etc. then you could appraise the land under the hypothetical condition that the improvements dont exist.

Not so. Have you forgot the Q & A from March, if I am correct. You are appraising a partial holding and no HC or EA is necessary, only an explanation of what you are appraising and the impact that such improvements would have on the valuation.
http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=12&DID=1146&DOC=FILE.PDF

Does Appraising a Physical Segment Require Use of a Hypothetical Condition?

Question:
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I received a request to perform an appraisal on an improved property; however, the client only wants me to provide an opinion of land value, giving no value to the improvements. Does such an assignment require the use of a hypothetical condition, since the improvements exist but are not being included in the value?
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Response:
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No, such an assignment does not require the use of a hypothetical condition.
Standards Rule 1-2(e)(v) permits the appraisal of a physical segment of a property. In this example, the segment being appraised would be the land. Put simply, the land is the subject of the assignment and the improvements are not. To avoid communicating a misleading appraisal report, the report would have to acknowledge the [/FONT][FONT=Times New Roman,Times New Roman]existence [/FONT][FONT=Times New Roman,Times New Roman]of the improvements on the land, but they do not have to be included in the valuation. [/FONT]

 

[Appraisal Santa Fe]

I ended up turning the assignment down. Spoke to the owner and there were ingress problems on top of all this other stuff.. :new_all_coholic:
It was not on Indian land, just in an area that was obviously not active.

I hate giving up a job in this day and age.

Thanks for all the responses

RC