General Area in 01749>Question Details

God's Child, Other/Just Looking in 01749

why would a lot size be uniquely large for an area and have no difference in value.?

Asked by God's Child, 01749 Fri Jul 17, 2009

Help the community by answering this question:

Answers

5
Why would the lot size increase the value of the home particularly when it is unique to the area. The appraiser likely has no comps to compare the property too and support additional value in the lot size. Is it big enough to be sub divided?
1 vote Thank Flag Link Fri Jul 17, 2009
Hi There,

Lots of good scenarios here that I will add to.

I have run into this recently and was told the following: The lenders perspective is that about 1/3 of an acre is what is most commonly “used” on a plot of land that is not sub dividable. Therefore, anything above and beyond is considered a liability from their perspective as well as an insurer’s perspective. (And it is the bank who hires the appraiser to determine the value of a property) I know it may seem silly. Don’t shoot the messenger!

Another reason why that may be the case, is perhaps that plot of land only has a small percentage of “uplands” or usable space. The remainder of the acreage could be conservation land that is completely unusable even an owner wanted to us e it! Hope this makes sense!
0 votes Thank Flag Link Fri May 13, 2011
Every adjustment an appraiser makes does not need to be backed up by a "comp" as you put it. An appraiser can base an adjustment on their opinion of the market reaction. They can look at other towns, talk to local brokers and agents to garner opinion, or ideally speak to market participants who are currently active locally. There are many ways to support an opinion of contributory value for site. In my opinion it is appropriate for you, the mortgage broker and representative of the intended user presumably, to contact the appraiser and ask them the same exact question you posited here. A competent appraiser can always explain his or her reasoning, and that reasoning may and often does include pure opinion. That's what makes experienced and knowledgeable appraisers worth using, you know the opinions are from a true expert in valuation.
Web Reference: http://www.JDAppraisal.com
0 votes Thank Flag Link Fri May 6, 2011
It may have some difference in value, but not a significant amount of money. It may add value in that a buyer looking for privacy lot might choose your hone over one with less land. For some buyers looking in your area, they may not want the extra costs associated with maintaining a larger lot. One the plus side, your probably not paying a large amount of property taxes for the land.
0 votes Thank Flag Link Sat Jul 18, 2009
assuming the lot is not further subdividable, many times you have a home on a large lot because a good portion of the lot is wet or a steep hill or drop off and not good for anything else. So, if it is not usable it has no real value other than privacy. If it is usable it does add value, at a percentage. in other words example:
1 acre is $100,000, 2 acres is $110,000, its not double, or something like this.
0 votes Thank Flag Link Fri Jul 17, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer