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Vacant Land Question

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raquel berrios

Thread Starter
Freshman Member
Joined
Jan 3, 2007
Professional Status
Certified Residential Appraiser
State
New York
Hello

This is my first time doing a vacant land appraisal and i am not sure on certian things to do. My questions are, What type of form do i us? How far back can i go for sales? How many miles can i go out? What kind of adjusments are made on difference in lot size? Now the land that i am going to appraise is
on 4 different tax lots, they are all next to each other. The only thing that the lawyer told me was that the lots are not level and may require some blasting. He also explained that they may all be on the same deed and the seller is a church which they now the have an approval from the attorney general to sell the lots. All lots have different size's, do i combine all lots to come up with one lot size? The zoining is Commercial/Residential.
What kind of fee should i charge on something like this?

Any advise would be greatly appreciated and i thank everyone for there
time.
 
Joined
Oct 22, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Hello

This is my first time doing a vacant land appraisal and i am not sure on certian things to do. My questions are, What type of form do i us? How far back can i go for sales? How many miles can i go out? What kind of adjusments are made on difference in lot size? Now the land that i am going to appraise is
on 4 different tax lots, they are all next to each other. The only thing that the lawyer told me was that the lots are not level and may require some blasting. He also explained that they may all be on the same deed and the seller is a church which they now the have an approval from the attorney general to sell the lots. All lots have different size's, do i combine all lots to come up with one lot size? The zoining is Commercial/Residential.
What kind of fee should i charge on something like this?

Any advise would be greatly appreciated and i thank everyone for there
time.

I would start by going back to my client and asking him whether or not they want the value of the whole or the parts. If they are 4 seperate lots then they MAY want 4 different appraisal reports. If they already have a potential buyer lined up that wants all four together, then the client may want it valued a whole...ie...assumption made that is combined as one parcel. Your client will have to be the one to tell you which way to go. And get these instructions IN WRITING so there is no question what is to be appraised and how.

Also, another thing to consider, is that your license level MAY not allow you to do this if it's a commercial property and the value exceeds $250,000 (I think thats the limit - but someone else can verify that). You did say it was zoned commercial/residential. (I personally have never seen a zoning that allows both or either/or, it's normally one or the other - but I'm not saying it doesnt exist).

And lastly, make sure you determine who the actual client is - is it the Attorney or the Church? And then write a rock-solid engagement letter outlining exactly how things will be done. And I wouldn't even think of starting until I got the fee in full.

Hope that helps.

todd
 
Joined
Oct 22, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
As for the form type - I probably wouldnt use one. I would just sit down and start writing. That way I can dictate the contents and format of the report and cover what is appropriate. Narratives aren't hard to do, and they are often way more appropriate than any form could ever be.

Just my .02...

todd
 
Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Highest and Best Use and minimum lot sizes according to the zoning department.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
You need to start by analyzing the Highest and Best Use of the lots separately and together. You are the appraiser.

This does not sound like a report(s) that can be put on forms but rather a narrative report. I don't know since I have never appraised land on a form.
 
Joined
Oct 22, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
How far back can i go for sales? How many miles can i go out?

That is up to you. If your client does not place any restrictions on you regarding this upfront, then you can go as far back and as far away as you deem necessary. Your responsibility is to make sure the results are credible. We are normally bound by supplemental and/or lender guidelines when appraising (6 mos back and 1 mile or less) , but in this case your client probably has no such guidelines. So it will be up to you to decide.

todd
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Any advise would be greatly appreciated and i thank everyone for there

Raquel-

I would not want to do my "first" vacant land appraisal without having assistance/supervision by someone who knows that market. While you will get good general advice on this forum, none of us are a substitute for a competent co-appraiser the first time around.

Please consider this suggestion in the spirit it is given. Everyone has a learning curve- get some assistance so yours will be smooth; you and your client will benefit from that. :new_smile-l:

Good luck!
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Raquel I honestly think given the questions you have asked you should team up with someone on this assignment. PARTICULARLY given its your first assignment and its for potential court purposes.
Having never done one before, and I hate to say this, but your competency will come into question in this assignment. I hope you have someone that can help you with these questions.
As a guy thats been in the business a while, from just reading your questions, this is not necessarily and easy assignment.
Id not put it on a form, Id write a narrative, but Im scratching my head on this one as there are so many problems with the property.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Raquel I honestly think given the questions you have asked you should team up with someone on this assignment. PARTICULARLY given its your first assignment and its for potential court purposes.
Having never done one before, and I hate to say this, but your competency will come into question in this assignment. I hope you have someone that can help you with these questions.
As a guy thats been in the business a while, from just reading your questions, this is not necessarily and easy assignment.
Id not put it on a form, Id write a narrative, but Im scratching my head on this one as there are so many problems with the property.

PE gives sage advice! :icon_wink:
 

raquel berrios

Thread Starter
Freshman Member
Joined
Jan 3, 2007
Professional Status
Certified Residential Appraiser
State
New York
Thank you everyone for there advice and i do feel that i know should
team up with someone inorder to do this the right way.
Have a great day everyone.

Raquel
 
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