Valuation of Improvements Only

[J Grant]

I have done couple in a flood zone for purposes of determining the value of improvements only. They were going to add on to the existing structure and regulations only allow 50% of the value of existing improvements. Sales comparison less site value. I was lucky to have good riverfront land sales as well as good typical sales comps.

Actually, you did not value the improvements only. Your formula valued the contributory value of the improvements to the land.

Which perhaps is what they really needed to know.

 

[Meandering]

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Contrary to popular belief, homes, and buildings can be moved, and that, is not limited to trailers. So, if you move all the buildings to a dfferent piece of land, will they be worth more or less???

Oh yeah, that is dependent upon the value of the land benefit them, because no "moved" certification needs to be issued for a stick built building.

Gallery

wabuildingmovers.com

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[J Grant]

Some houses and buildings can be moved relatively easily /maintain their integrity, others can not.

Assuming a house and building can be safely moved, their value alone DOES NOT depend on what land they will be placed on !!!!

The value of a car does not change because I parked it in this community or another community. A car is a personal property. A house on a flatbed being moved is personal property.

After the house is moved and fixed to a site, one might be engaged to appraise it on the plot of land it sits on in that location as real property.

But while it is on a truck being moved or on a flatbed or in pieces waiting to be situated, it is personal property. That is what the improvements alone means

 

[glenn walker]

We have moved three old houses in my lifetime and all short distances and less than 3 miles but unless out in a vast empty desert of land there's no such thing as a easy to move house
and the entire POS is just mostly BS and that's because it's the location you are moving it
to which will make it worth more or less.

If it's moved to a inferior parcel of land or location my cost estimate becomes totally worthless because buyers won't even pay cost new minus depreciation.

This seems like another AF "Hypothetical" thread started by someone who either has no clue what he/she is doing or just enjoys watching appraisers participate in a never ending " circle jerk" for some sadistic or weird real estate fetish LMAO

 

[J Grant]

Appraiser nerds enjoy discussing this type of thing. Lol

 

[glenn walker]

Appraiser nerds enjoy discuss Whats

Whats scary is I think many are not really " hypotheticals" and it's the same as the ones that often come on and say they are asking for a friend or relative . The truth is often its an appraiser who has no freaking idea what they are doing and just to embarrassed to just say they are in way over their heads but need the money so bad they won't invoke " the USPAP competency requirement to advise the client to get another appraiser.

 

[jay trotta]

I have an appraisal theory question, and I'm hoping some of you here might be able to humor me and discuss to further my own understanding.
Q: How would you go about valuing the improvements alone on a real property?

Before you answer, please keep in mind that this does not involve lending regulation, the sacred 1004 form, FNMA policy/rulebooks, etc.
Let me provide a hypothetical assignment so that we can better handle the appraisal development procedure:

1. Client: private estate
2. Intended user: the client
3. Intended use: assist client in making a selling decision
4. Value: Market value (from Dictionary of RE)
5. Effective date: current value
6. Characteristics of the property: 100 acres with home, shop building, and a larger hay barn. Location out of city limits, no zoning, 10 miles from nearby town.
7. EA/HC: No known EA or HC known to be needed at this time

For sake of discussion: What approaches would be applicable? How would you complete them? Are the improvements considered real property or personal property in this scenario?

#1 & #2 - IMO, you could be doing an insured value, (IE: dwelling only, based on depreciated building) But then again, most insurance now covers a % above the base value, replacement cost.

#3 & #4 - you have now crossed over to MV as a typical property and would require a Land Value

#5, #6, & #7 - add to Q&A in #3 & #4 (Under your noted Q: above)

Hope this provides some humor, as you requested.
Cheers,

 

[glenn walker]

When a hypothetical real estate question becomes a multiple choice test quiz ? I often tell one poster on the AF to just Use both a "Hypothetical and Extraordinary Assumptions as one will washout the wrong assumption.

The poor lost soul a few years ago actually did that and then PM and E-Mailed me screaming, that his client was threatening to report him to his State Board for a report that was unusable and of poor quality. He then ended his rant with " Please" tell me which assumption to void and which one to keep in place. I replied with no I really don't know which one is correct, but if I was you, I would just have a few beers and then flip a coin LMAO

 

[Meandering]

Assuming a house and building can be safely moved, their value alone DOES NOT depend on what land they will be placed on !!!!

Really???

So a home in an urbanized area next to the highway, will be worth the same If it was moved to Beverly Hills? Or to a much larger land parcel? or to a suburban setting away from the highway???

Oh my, so you're saying that location doesn't matter in the overall value?

The "improvements" do have a value separate from the land, it's just that so many CRs only ever consider the combination of land and improvements as they fudge their way though the cost approach, or if they even attempt the cost approach.

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[J Grant]

Really???

So a home in an urbanized area next to the highway, will be worth the same If it was moved to Beverly Hills? Or to a much larger land parcel? or to a suburban setting away from the highway???

Oh my, so you're saying that location doesn't matter in the overall value?

The "improvements" do have a value separate from the land, it's just that so many CRs only ever consider the combination of land and improvements as they fudge their way though the cost approach, or if they even attempt the cost approach.

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you did not understand a word I said.
Of course the same house moved to /x location or Y location can have a different value for each one Which I already explained in a prior post. The problem is not what the house is worth on X location site because then it is just a regular appraisal.