“Appraisals that Involve Acreage”

It’s all about the comps.

I receive a call from a Realtor who was in the process of selling a home on 16 acres. She told me there are literally no comparable sales with over 3 acres, but much of the value of the property is in the land.

I asked what the sale price is going to be. How much would the property sell for without the additional acreage? It was going to be a problem, as there was about $100,000 difference. I asked if there were any comps in the adjoining towns. She said she wasn’t sure, but would check.

I told her that I would make a couple of phone calls. As I had expected, if there were not comparable sales, it would be almost impossible to get the loan done, but two lenders indicated that they would look at comparable in the abutting town or towns.

I got back to the Realtor to discuss what might be possible. She told me there were two comparable sales that might work. She would do some more investigation and then make a decision as to her next steps.

There are many areas in the 8 states that I do business that have homes with acreage, they are not difficult to do, as long as there are comps for the appraiser to work with.