Valuing un-buildable land

[bodenstein]

I've been asked to appraise a parcel of land that is a proposed conservation easement of approximately 14.5 acres surrounding an approved commercial development. The owner wants to donate the site to the township for tax purposes, and the township is agreeable to receiving it. The site consists primarily of wetlands and wetlands buffers, and is a narrow meandering configuration with virtually no development capacity on a stand alone basis. I am unsure how to approach this valuation and tempted to just pass on it, but it was a referral from a valued contact, so we would like to be of service, if possible. Any advice/guidance would be much appreciated.

 

[Tom D]

Don't forget to take off the 100 year maintenance cost of unusable ground. I don't want it, give it them. Same with this appraisal.

 

[TerryRohrer]

Short of finding data, there is no credible or reliable way to accomplish the task (other than flat out guessing). I wouldn't want to do that when IRS scrutiny is in the cards. You might find the following thread useful.

Post in thread 'Land Appraisal for Charitable Donation'

Jun 24, 2024

First, be careful. This type of assignment puts you in the IRS's crosshairs along with the owner.

If you find nothing locally, you can look anywhere for unbuildable tracts (terrian, flood, etc) and compare those to buildable tracts in their area to develop a discount percentage that can be applied to local to your subject, buildable comps. Some will argue (often just for the sake of arguing), but I don't feel bound by any time or geographic restrictions when looking for such data. Toward that end, I could provide you one pair (my own transaction) and know of another.

Again, others will...

• TerryRohrer

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[bodenstein]

Thank you. I appreciate the cautionary advice!

 

[JTip]

https://www.nrcs.usda.gov/programs-initiatives/wetland-mitigation-banking-program

Did one years ago, yes yes under a CG, I did 99% of the work and the CG signed it, the land has value albeit not much.

 

[Terrel L. Shields]

but it was a referral from a valued contact, so we would like to be of service, if possible. Any advice/guidance would be much appreciated.

Do these occasionally. Just use land comps from other conservation parcels. Check for Nature Conservancy as a buyer, or a Land Trust - these are your comps.