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Which Advisory Opinion

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Thread Starter
Elite Member
Gold Supporting Member
Sep 20, 2005
Professional Status
Licensed Appraiser
I cannot get the USPAP link to work for 2008-2009. I am away from office were manual is and would like for someone to tell me which AO addresses the issue of adding land to construction cost or the value of an improvement to the value of a land parcel for the sake of creating a sales comparable.

Jerry Bone Jr

Senior Member
Feb 23, 2004
Professional Status
Licensed Appraiser
1004c, page 6 of 7, Appraiser's Certification # 8.


Elite Member
Apr 4, 2007
Professional Status
Certified Residential Appraiser
This is not in any of the AOs. It was addressed in one of the monthly Q&A.

USPAP Compliant

Elite Member
Jan 15, 2002
Professional Status
Certified Residential Appraiser
North Carolina
Happend in North Carolina:

XXXXXXX XXXXX (Gastonia)—By consent,
the Board issued a reprimand to XXXXXXXXXXXXX and
ordered him to take courses in sales comparison, a
course in appraising high-end residential properties,
and a course in appraiser liability. If he fails to complete
the courses by September 1, 2007, the reprimand
will be vacated and a three-month suspension
will be activated on that date. Although the Board
did not find that Mr. xxxxxxx had committed any violations
of standards, the Board did allege the following:
that Mr. xxxxxx appraised a property located in
Cramerton, NC in November 2004, finding an appraised
value of $655,000. At the time of the appraisal
the subject property was a proposed two-story brick
custom home containing 4391 square feet and a three
car garage. Mr. xxxxxxxxxxxx used three properties in his
sales comparison approach. None of those properties
were sales that were exposed to the market.
They were all new custom-built homes; the owners
all contracted with a builder to construct a residence
on land they already owned. The “sales prices” stated
in the appraisal report were calculated by adding
the amounts the owners paid for the lots to the
prices charged by the builders when the properties
were constructed. xxxxxxxxx stated in the report
that these three sales were “custom presales,” yet
could have provided further explanation as to how
he derived the information used in the sales comparison
approach. Mr. XXXXXXXX used land/home package
sales as comparables in his sales comparison


Junior Member
Mar 10, 2007
Professional Status
Certified General Appraiser
We have a CG that has been doing exactly that to create comps in the market on and off for years.

Price paid for the land plus the value indicated by the building permit = the value of that "comp" for comparison to the subject
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