1 / 9

Site Valuation

Site Valuation. Appraiser can estimate value of: Vacant land Unimproved land Vacant site Land that has been improved by addition of utilities and is suitable for building. Why Do a Separate Site Valuation?. Cost approach Assessments and taxation Condemnation appraisals

tareq
Download Presentation

Site Valuation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Site Valuation Appraiser can estimate value of: • Vacant land Unimproved land • Vacant site Land that has been improved by addition of utilities and is suitable for building

  2. Why Do a Separate Site Valuation? • Cost approach • Assessments and taxation • Condemnation appraisals • Income capitalization approach • Highest and best use study

  3. Highest and Best Use • Physically possible Limited by site’s size, shape, topography 2. Legally permitted Zoning, building codes, hazardous areas, CC&Rs • Economically feasible Present or anticipated market conditions • Maximally productive Highest financial return and property price

  4. Vacant land, or land treated as if vacant, if already improved Land treated as improved, but with changed use Example: Warehouse converted to loft apartments Interim use Consideration of present use in light of anticipated property use due to change in market conditions, etc. As Improved, i.e., current improvements are site’s highest and best use.

  5. Site Data • Identification • Highest and best use • Physical features Size, location, utilities, improvements, soil composition, flood/earthquake zone • Zoning • Easements, rights-of-way, CC&Rs

  6. Environmental Concerns • Toxic substances Air, water, ground, structures • Endangered species • Wetlands • Brownfields Abandoned or underutilized property that may or may not be contaminated Information on regional offices of EPA: 202-260-1223 epa.gov/swerosps/bf

  7. Methods of SiteValuation • Sales comparison method Sales of similar vacant sites are analyzed and compared, with adjustments to sales prices resulting in estimate of value of subject site • Allocation method (extraction method) Cost of improvements subtracted from sales price of property to find value of site alone

  8. Subdivision development method or Land development method Requires forecast absorption and projected gross sales Developer’s profit is also called entrepreneurial profit

  9. Ground rent capitalization method Annual income from ground lease is divided by capitalization rate to indicate market value of site • Land residual method Net income earned by building is deducted from total income to derive net income for land and net income for land is divided by capitalization rate to derive land value

More Related