I have a Lead with a Motivated Seller on a property that is unique in it’s neighborhood. It is a house on 2.47 acres, of which 1.07 acres is a fenced-off attached undeveloped lot. The mortgage payments include the house and all 2.47 acres. There are no other properties like this in the neighborhood to Compare it with. The Seller mentions this as being a problem, ie finding Comps. I have confirmed this- all the nearby houses are on much, much smaller lots.
How does one determine the market value of unique properties in a neighborhood?
Thanks.
higher a professional appraiser.
this is what they do for a living. anything else is just a guess and not an educated one at that if you have no available comps.
There may be 2 different ways of estimating a value for this property without having to involve an appraiser.
If the property can be subdivided into several separate building lots, then you could put a value on the development land component of the property based on the # of lots that could be subdivided off. To that you would add a value for the existing house theoretically situated on the minimum lot size required by the zoning.
You could also put a value on the entire property based on the assumption that it wouldn’t be developed. When I CMA properties with existing houses on them and compare them with other properties that have different parcel sizes, I upward/downward adjust for parcel size using $10K/acre for each acre of size differential where the land cannot be further subdivided. This figure is market specific. Building lots in my area go for $150K-500K. So if the subject is on a 1 acre parcel and one of the comps is on a 1.5 acre parcel and neither parcel can be further subdivided, I adjust the value of the subject downwards by $5K.
i dont know if i would actually consider that a unique property. you just have to estimate the land value per acre in the area and do the math. I ahve run into unique properties that you couldn;t get a value on. That was more like a home built into the side of a mountain where the only exposed wall was the front of the house they werent able to determine a value for the home at all. most lenders wont touch something like that. but i woud get an apprasial they arent expensive.