Vacant Land Comps

[Randall]

Hi,

I had an appraisal done on a multifamily unit. The appraiser used vacant land comparables from outside what he deemed as the neighborhood. They were not far away just a 1/2 miile or so outside the perimeter. Is that O.K. to do?

Thanks,
Randall

 

[Michigan CG]

Randall, where in Iowa are you?

 

[Randall]

Des Moines

 

[Michigan CG]

Hi,

I had an appraisal done on a multifamily unit. The appraiser used vacant land comparables from outside what he deemed as the neighborhood. They were not far away just a 1/2 miile or so outside the perimeter. Is that O.K. to do?

Thanks,
Randall

It is very common to do so if there are no land comps available in the neighborhood. If you are in urban Des Moines there might not be any recent or comparable land sales.

But let's say there were some land sales but they were zoned different than your property; they might not be comparable.

Also, many appraisers try to use only multifamily land sales when they are appraising a multifamily property. Just as they might also only try to use high intensive commercial land sales for a high intensive subject property.

FWIW I lived in Iowa for 20 years until this year.

Go Hawkeyes!

 

[Randall]

Thanks for the information