Where To Report Land Analysis In A Form Report ?

[CANative]

Z.... I just export the returns I get from searching land/lot sales into excel and make a nice little spreadsheet I can copy into an exhibit addendum. Then I write a single paragraph (most of the time) narrative of why my opinion is this or that. For a cost approach land value I don't think it needs to be more complicated than that.

 

[Terrel L. Shields]

I don't think it needs to be more complicated than that.

Me neither, but pulling land sales into a spreadsheet and then pasting the info into the excel spreadsheet I show above it barely a big deal. And when you have limited land sales you need to justify some adjustments. Hard to find 3 or more land sales of 5 acres in Bugscuffle Arkansas. And while not required, I think it best to not rely upon a single land sale as proxy for the subject without some very good reason to do so.

When your subject value is predominately land, not buildings, then the proper report is a LAND appraisal. I know those of you in CA dealing with $500,000 lots and $100,000 houses would beg to differ, but the more likely error is in valuing the LAND, not the building.

I can do the analysis above in 10 minutes easy enough, and write the narrative in five...so what is the big deal?

 

[CANative]

"Land value by extraction."

 

[Mike Garrett RAA]

Anyone use what the assessor has on the property card?

 

[Vermonter]

But how else do you comply with USPAP's demand that you develop an "opinion of site value by an appropriate method or technique" How do you demonstrate that you applied an "appropriate method"? You can state the sales, argue the sales, do a land extraction, etc. but without saying exactly what you did, the simple grid summarizes the method fairly well...comparable land sales.

I get what you're saying. It would probably be easier to just copy/paste a grid in the addendum or use an additional page. I just never have and no one has ever asked.....so I don't bother.

 

[Terrel L. Shields]

I get what you're saying. It would probably be easier to just copy/paste a grid in the addendum or use an additional page. I just never have and no one has ever asked.....so I don't bother.

One point a board member made to us was that virtually all the cost approaches done that came before the board there was virtually none of them that either described what they did, or identified any sales and almost never gridded sales even when the land was a large part of the value.

 

[CANative]

Anyone use what the assessor has on the property card?

 

[Terrel L. Shields]

Anyone use what the assessor has on the property card?

That cost someone their license here.