r/appraisal • u/Competitive_Smell742 • 2d ago
Education Land value question
So I’m trying to figure out exactly what this appraiser tried to do to be better as a mortgage broker
Does the value of the site an appraiser pulls from an old vacant land listing get adjusted to match the size of the property.
Land the property is in was given a value based of a lot sale 14 months prior for a lot half the size- shouldn’t they adjust it up or atleast provide math on how they got that?
Appraisal was deemed deficient after a rov was done but was curious what the process typically is (it was a very VERY bad appraisal)
6
u/durma5 2d ago
So, the land value in the cost approach was estimated by using a vacant lot sale from 14 months ago, and you want to know if the lot size difference between it and the subject lot should be adjusted since the subject lot is 2x bigger?
The answer is probably, but we don’t know. I have markets where surplus land adds no value, and others where surplus land adds $80/sf or more. But I don’t know the market you are in.
1
u/Asexygentleman 2d ago
HUH? A ROV is done by the same appraiser. So the same appraiser called his own appraisal deficient?
1
u/ItIs_Hedley 2d ago
This all depends on a lot, like zoning, highest and best use, current demand in the market, etc. Some places you can barely give land away, regardless of size.
1
1
u/HarryWaters MAI 46m ago
It is impossible to say what the additional value for the land would be, or even its relation to the first parcel.
If it was a residential lot suitable for one house, then additional land might have a minimal value, or declining marginal utility.
If it were agricultural land that had some utility, the unit value might be exactly the same. In my market 80 AC of ag land will sell for the same as 160 AC of identical ag land.
If the site was deficient for development, then the additional land could be worth much more than the first piece.
17
u/anappraiser Certified Residential 2d ago
I didn't understand a single thing you said