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 â€œusedâ€ 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 insurerâ€™s perspective. (And it is the bank who hires the appraiser to determine the value of a property) I know it may seem silly. Donâ€™t shoot the messenger!
Another reason why that may be the case, is perhaps that plot of land only has a small percentage of â€œuplandsâ€ 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!