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Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

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Page 1: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

0

Land is basic to real estate appraisalIt is one of the essential components of property

land improvements to the land (site

improvements) buildings comprise the total property

valueWhen using a cost approach to value a land

schedule is needed to allocate the amount of value attributable to the land When using the Cost Approach the land value is added to the site improvements (water septic driveway etc) and the cost of improvements (buildings) minus depreciation to indicate an overall value for the property

1

Land Schedules are an important component of a cost approach to value in a mass appraisal settingLand +Site Improvements +RCNLD (Replacement Cost New Less (Minus) ndashDepreciation) ----------------------------------------------------= Estimate of Value by the Cost Approach

2

(RCN)

(RCNLD)

You need to understand where your values came from ALL OF THESE COME FROM THE

MARKETWhile we do not have the time or resources to do an

individual sales comparison approach on every piece of land we will use sales to develop a schedule to apply to all land in town

In addition if you ldquoinheritedrdquo an existing land schedule it is important that you understand how this land schedule was derived and how it relates to your current valuation system and the current market

The basis of a land schedule is the market (sales) A full land analysis should be performed to determine what factors affected the sale of each parcel of land and how that information can be used to value each piece of land within a town

We are trying to project what we know (the market the sales information) onto what we do not know (land values for unsold properties)

In order to do this you must become a student of your market

3

Property Value = Bullrsquos Eye

Sales Information

STEP 1-bull Identification-

bull Define the Problem

STEP 2

bull Analysis-bull General Market Factorsbull Specific of sales amp then

subject(s)

STEP 3

bull Valuationbull Projectapply the results of your

analysis onto the subject property or properties

4

Identify what we are to valueWhat is the property we are valuing One parcel or several parcelsIn town assessment work typically we are valuing all

land town wide

How is land described and measured

Land Description Systems-The earliest form of land description was the ldquoboundedrdquo

description which described the property by reference to physical features or adjacent property owners Typical features included trees ridgelines streams and roads Little thought was given to the fact that a fence line or tree line might someday cease to exist

As land became more valuable and disputes over unclear ldquoboundsrdquo became more numerous better methods of description evolved It became a common surveying practice to measure the direction of property lines with compass bearings and the distance with measuring chains or tapes Property described in this manner became known as ldquometes and boundsrdquo

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

5

Metes and Bounds- although this is an older term for a description of property lines- ldquometesrdquo refers to measurement and ldquoboundsrdquo refers to boundaries including features of terrain and other markers

Most deeds that you will find today will have some sort of metes and bounds description although not all are thorough or conclusive

The bearing of a line is the angle between a north-south meridian and the line from north or south toward the east or west

In a metes and bounds description each property line is described with the beginning of each line being the end of the preceding line A proper metes and bounds description should ldquocloserdquo that is the last line should come back to the point of beginning

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

6

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 2: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Land is basic to real estate appraisalIt is one of the essential components of property

land improvements to the land (site

improvements) buildings comprise the total property

valueWhen using a cost approach to value a land

schedule is needed to allocate the amount of value attributable to the land When using the Cost Approach the land value is added to the site improvements (water septic driveway etc) and the cost of improvements (buildings) minus depreciation to indicate an overall value for the property

1

Land Schedules are an important component of a cost approach to value in a mass appraisal settingLand +Site Improvements +RCNLD (Replacement Cost New Less (Minus) ndashDepreciation) ----------------------------------------------------= Estimate of Value by the Cost Approach

2

(RCN)

(RCNLD)

You need to understand where your values came from ALL OF THESE COME FROM THE

MARKETWhile we do not have the time or resources to do an

individual sales comparison approach on every piece of land we will use sales to develop a schedule to apply to all land in town

In addition if you ldquoinheritedrdquo an existing land schedule it is important that you understand how this land schedule was derived and how it relates to your current valuation system and the current market

The basis of a land schedule is the market (sales) A full land analysis should be performed to determine what factors affected the sale of each parcel of land and how that information can be used to value each piece of land within a town

We are trying to project what we know (the market the sales information) onto what we do not know (land values for unsold properties)

In order to do this you must become a student of your market

3

Property Value = Bullrsquos Eye

Sales Information

STEP 1-bull Identification-

bull Define the Problem

STEP 2

bull Analysis-bull General Market Factorsbull Specific of sales amp then

subject(s)

STEP 3

bull Valuationbull Projectapply the results of your

analysis onto the subject property or properties

4

Identify what we are to valueWhat is the property we are valuing One parcel or several parcelsIn town assessment work typically we are valuing all

land town wide

How is land described and measured

Land Description Systems-The earliest form of land description was the ldquoboundedrdquo

description which described the property by reference to physical features or adjacent property owners Typical features included trees ridgelines streams and roads Little thought was given to the fact that a fence line or tree line might someday cease to exist

As land became more valuable and disputes over unclear ldquoboundsrdquo became more numerous better methods of description evolved It became a common surveying practice to measure the direction of property lines with compass bearings and the distance with measuring chains or tapes Property described in this manner became known as ldquometes and boundsrdquo

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

5

Metes and Bounds- although this is an older term for a description of property lines- ldquometesrdquo refers to measurement and ldquoboundsrdquo refers to boundaries including features of terrain and other markers

Most deeds that you will find today will have some sort of metes and bounds description although not all are thorough or conclusive

The bearing of a line is the angle between a north-south meridian and the line from north or south toward the east or west

In a metes and bounds description each property line is described with the beginning of each line being the end of the preceding line A proper metes and bounds description should ldquocloserdquo that is the last line should come back to the point of beginning

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

6

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 3: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Land Schedules are an important component of a cost approach to value in a mass appraisal settingLand +Site Improvements +RCNLD (Replacement Cost New Less (Minus) ndashDepreciation) ----------------------------------------------------= Estimate of Value by the Cost Approach

2

(RCN)

(RCNLD)

You need to understand where your values came from ALL OF THESE COME FROM THE

MARKETWhile we do not have the time or resources to do an

individual sales comparison approach on every piece of land we will use sales to develop a schedule to apply to all land in town

In addition if you ldquoinheritedrdquo an existing land schedule it is important that you understand how this land schedule was derived and how it relates to your current valuation system and the current market

The basis of a land schedule is the market (sales) A full land analysis should be performed to determine what factors affected the sale of each parcel of land and how that information can be used to value each piece of land within a town

We are trying to project what we know (the market the sales information) onto what we do not know (land values for unsold properties)

In order to do this you must become a student of your market

3

Property Value = Bullrsquos Eye

Sales Information

STEP 1-bull Identification-

bull Define the Problem

STEP 2

bull Analysis-bull General Market Factorsbull Specific of sales amp then

subject(s)

STEP 3

bull Valuationbull Projectapply the results of your

analysis onto the subject property or properties

4

Identify what we are to valueWhat is the property we are valuing One parcel or several parcelsIn town assessment work typically we are valuing all

land town wide

How is land described and measured

Land Description Systems-The earliest form of land description was the ldquoboundedrdquo

description which described the property by reference to physical features or adjacent property owners Typical features included trees ridgelines streams and roads Little thought was given to the fact that a fence line or tree line might someday cease to exist

As land became more valuable and disputes over unclear ldquoboundsrdquo became more numerous better methods of description evolved It became a common surveying practice to measure the direction of property lines with compass bearings and the distance with measuring chains or tapes Property described in this manner became known as ldquometes and boundsrdquo

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

5

Metes and Bounds- although this is an older term for a description of property lines- ldquometesrdquo refers to measurement and ldquoboundsrdquo refers to boundaries including features of terrain and other markers

Most deeds that you will find today will have some sort of metes and bounds description although not all are thorough or conclusive

The bearing of a line is the angle between a north-south meridian and the line from north or south toward the east or west

In a metes and bounds description each property line is described with the beginning of each line being the end of the preceding line A proper metes and bounds description should ldquocloserdquo that is the last line should come back to the point of beginning

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

6

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 4: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

You need to understand where your values came from ALL OF THESE COME FROM THE

MARKETWhile we do not have the time or resources to do an

individual sales comparison approach on every piece of land we will use sales to develop a schedule to apply to all land in town

In addition if you ldquoinheritedrdquo an existing land schedule it is important that you understand how this land schedule was derived and how it relates to your current valuation system and the current market

The basis of a land schedule is the market (sales) A full land analysis should be performed to determine what factors affected the sale of each parcel of land and how that information can be used to value each piece of land within a town

We are trying to project what we know (the market the sales information) onto what we do not know (land values for unsold properties)

In order to do this you must become a student of your market

3

Property Value = Bullrsquos Eye

Sales Information

STEP 1-bull Identification-

bull Define the Problem

STEP 2

bull Analysis-bull General Market Factorsbull Specific of sales amp then

subject(s)

STEP 3

bull Valuationbull Projectapply the results of your

analysis onto the subject property or properties

4

Identify what we are to valueWhat is the property we are valuing One parcel or several parcelsIn town assessment work typically we are valuing all

land town wide

How is land described and measured

Land Description Systems-The earliest form of land description was the ldquoboundedrdquo

description which described the property by reference to physical features or adjacent property owners Typical features included trees ridgelines streams and roads Little thought was given to the fact that a fence line or tree line might someday cease to exist

As land became more valuable and disputes over unclear ldquoboundsrdquo became more numerous better methods of description evolved It became a common surveying practice to measure the direction of property lines with compass bearings and the distance with measuring chains or tapes Property described in this manner became known as ldquometes and boundsrdquo

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

5

Metes and Bounds- although this is an older term for a description of property lines- ldquometesrdquo refers to measurement and ldquoboundsrdquo refers to boundaries including features of terrain and other markers

Most deeds that you will find today will have some sort of metes and bounds description although not all are thorough or conclusive

The bearing of a line is the angle between a north-south meridian and the line from north or south toward the east or west

In a metes and bounds description each property line is described with the beginning of each line being the end of the preceding line A proper metes and bounds description should ldquocloserdquo that is the last line should come back to the point of beginning

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

6

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
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  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 5: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

STEP 1-bull Identification-

bull Define the Problem

STEP 2

bull Analysis-bull General Market Factorsbull Specific of sales amp then

subject(s)

STEP 3

bull Valuationbull Projectapply the results of your

analysis onto the subject property or properties

4

Identify what we are to valueWhat is the property we are valuing One parcel or several parcelsIn town assessment work typically we are valuing all

land town wide

How is land described and measured

Land Description Systems-The earliest form of land description was the ldquoboundedrdquo

description which described the property by reference to physical features or adjacent property owners Typical features included trees ridgelines streams and roads Little thought was given to the fact that a fence line or tree line might someday cease to exist

As land became more valuable and disputes over unclear ldquoboundsrdquo became more numerous better methods of description evolved It became a common surveying practice to measure the direction of property lines with compass bearings and the distance with measuring chains or tapes Property described in this manner became known as ldquometes and boundsrdquo

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

5

Metes and Bounds- although this is an older term for a description of property lines- ldquometesrdquo refers to measurement and ldquoboundsrdquo refers to boundaries including features of terrain and other markers

Most deeds that you will find today will have some sort of metes and bounds description although not all are thorough or conclusive

The bearing of a line is the angle between a north-south meridian and the line from north or south toward the east or west

In a metes and bounds description each property line is described with the beginning of each line being the end of the preceding line A proper metes and bounds description should ldquocloserdquo that is the last line should come back to the point of beginning

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

6

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 6: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Identify what we are to valueWhat is the property we are valuing One parcel or several parcelsIn town assessment work typically we are valuing all

land town wide

How is land described and measured

Land Description Systems-The earliest form of land description was the ldquoboundedrdquo

description which described the property by reference to physical features or adjacent property owners Typical features included trees ridgelines streams and roads Little thought was given to the fact that a fence line or tree line might someday cease to exist

As land became more valuable and disputes over unclear ldquoboundsrdquo became more numerous better methods of description evolved It became a common surveying practice to measure the direction of property lines with compass bearings and the distance with measuring chains or tapes Property described in this manner became known as ldquometes and boundsrdquo

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

5

Metes and Bounds- although this is an older term for a description of property lines- ldquometesrdquo refers to measurement and ldquoboundsrdquo refers to boundaries including features of terrain and other markers

Most deeds that you will find today will have some sort of metes and bounds description although not all are thorough or conclusive

The bearing of a line is the angle between a north-south meridian and the line from north or south toward the east or west

In a metes and bounds description each property line is described with the beginning of each line being the end of the preceding line A proper metes and bounds description should ldquocloserdquo that is the last line should come back to the point of beginning

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

6

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
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  • Slide Number 17
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  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
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  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
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  • Slide Number 41
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  • Slide Number 56
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  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 7: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Metes and Bounds- although this is an older term for a description of property lines- ldquometesrdquo refers to measurement and ldquoboundsrdquo refers to boundaries including features of terrain and other markers

Most deeds that you will find today will have some sort of metes and bounds description although not all are thorough or conclusive

The bearing of a line is the angle between a north-south meridian and the line from north or south toward the east or west

In a metes and bounds description each property line is described with the beginning of each line being the end of the preceding line A proper metes and bounds description should ldquocloserdquo that is the last line should come back to the point of beginning

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

6

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
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  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 8: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

80 x 100 = 800020 x 100 = 2000 2 = 10008000 + 1000 = 9000 43560 =

2066 Acreage

80

100

100 If you know the square feet in an acre you can

calculate the square footage of any portion of an acre Conversely if you know the square footage of an area you can calculate the acreage or portion of an acreExample - 85 acres x 43560 sf per acre = 37026 sq ftExample - 37026 sq ft43560 sf per acre = 85 Acre

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

7

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 9: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

MEASUREMENTS (Interesting if not applicable)

1 MILE= 8 FURLONGS1 FURLONG= 660 FEET OR 10 CHAINS1 CHAIN= 66 FEET OR 4 RODS1 ROD= 16 12 FEET OR 25 LINKS1 LINK= 792 INCHES

1 HECTARE= 2471 ACRES1 HECTARE= 10000 SQUARE METERS1 SQUARE METER= 10764 SQUARE FEET1 METER= 3937 INCHES= 32808 FEET

1 LEAGUE= 3 MILES (OR 25 LABORS)1 LABOR= 17714 ACRES1 VARA= 33 13 INCHES (TEXAS)1 ARPENT= +-1918 FEET (LOUISIANA)1 POLE (AKA PERCH ROD)= 165 FEET1 SMOKE= THE DISTANCE A MAN TRAVELS

ON MULE BACK WHILE SMOKING A CIGARETTE

1 COLPA= OLD IRISH MEASURE OF LAND EQUAL TO THAT WHICH CAN SUPPORT A HORSE OR COW FOR A YEAR-APPROXIMATELY AN IRISH ACRE OF GOOD LAND

1 DAYS WORK= 4 SQUARE PERCHES40 DAYS WORK= 1 ACRE OR THE AMOUNT A TEAM OF OXEN

COULD WORK IN A DAY1 ACRE= 10 SQUARE CHAINS1 ACRE= 43560 SQUARE FEET

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

8

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 10: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Other types of land identification systems Rectangular Survey System- 6 mile by 6 mile

townships 36 numbered sections and geographically referenced points This system is used in at least 30 states and was started by the government in 1785

Lot amp Block LongitudeLatitude References XY Coordinates Parcel ID Systems- Tie and Coordinate Land

descriptions with value and tax etc

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

9

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
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  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
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  • Slide Number 19
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 11: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

MAPPING REFERENCES ONLINEwwwEPAgov - EPAgovenviromapper (contaminated sites)wwwtopozonecom (topography)wwwterraservercom (aerial)wwwmapquestcom (aerial)wwwnwifwsgov (wetlands)wwwfemagovhazardmapflood (flood maps)vcgiorg (aerial)earthgooglecom (aerial)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

10

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 12: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

STEP 1IDENTIFICATION

DEFINE THE PROBLEM-

11

Town wide property maps with integrated GIS can be very valuable in this process

Now that we have identified and defined what we are appraising we will begin our analysis

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 13: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Acreage accuracy is typically accepted in the following order

a) Deed (If clear measurements and markers are described in deed)

b) Survey done by registered surveyor and recorded in town clerkrsquos office

(where no obvious errors are found)

c) Property map Topographic and flood plain maps are helpful also

12

STEP 2ANALYSIS -GENERAL

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 14: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Analysis of the sale or sales and the subject property or properties

What are the factors and attributes that will affect the value or values of the property or properties that we are valuing These will be both general and town specific

Land supports all life and stands at the center of human cultures and institutions Wars have been waged over land and the rights to the ownership of land are embedded in the laws of all free nations and defended by their courts

Land uniqueness stems from its fixed supply and immobility Land cannot be manufactured or reproduced Also land is a factor of production required directly or indirectly in the production of all other goods Our most basic resource land is the source of all other wealth

STEP 2ANALYSIS -GENERAL

13

Land Valuation Theory

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
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  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
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  • Slide Number 44
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  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
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  • Slide Number 61
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 15: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

3Change

Balance

4Anticipation

Competition

Conformity

Constant Use

Contribution

Progressionand

Regression

Substitution

1Supply

and Demand

2Surplus

Productivity

Increasing and

Decreasing Returns

Appraisal Principles relating to land

STEP 2ANALYSIS -GENERAL

14

HIGHEST AND BEST

USE

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 16: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

A Principle of Supply and DemandSupply and demand has special significance in land

valuation because the supply of land is essentially fixed This means that the price of land in a particular area will be determined by demand factors such as population density and rate of growth local employment and income levels the capability of local transportation systems and mortgage interest rates

The supply of land for a particular use may increase or decrease

For example forest and farmland on the periphery of a city may be developed for residential use The increased supply slows price increases

STEP 2ANALYSIS -GENERAL

15

1 Appraisal Principles Relating to Land Schedule Derivation

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
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  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
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  • Slide Number 21
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  • Slide Number 25
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  • Slide Number 63
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  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 17: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

A Principle of Supply and Demand

The principle of supply and demand explains the large differences in land values between urban and rural areas between different urban areas and even between different neighborhoods in the same urban or rural area No other commodity exhibits such large variations in price

(LOCATION LOCATION LOCATION)

Supply Increase- Demand Steady or Low- Prices Stabilize or Decrease

Supply Prices

DemandSupply Low- Demand High- Prices Increase

DemandPrices

Supply

STEP 2ANALYSIS -GENERAL

16

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
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  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
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  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 58
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 18: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

B Principle of Surplus ProductivityPrinciple of Surplus Productivity states that returns

attributable to land are what remain after returns to labor management and capital are satisfied

The principle of surplus productivity underscores the unique position of land in production and helps explain why land values can vary dramatically If two parcels are used for identical purposes and are similar in their labor management and capital requirements but one because of its location produces greater gross income than the other then the difference in net income will be capitalized entirely into differences in land values

Example Cost to develop and market lots in a subdivision

C Principle of ChangeThe principle of change states that market value is

determined by dynamic economic political and demographic factors such as zoning rent controls interest rates transportation and local economic conditions

Due to the fact that the supply of land is relatively fixed its value is affected by changes in economic political and demographic market forces

Example - Interest rates businesswork 911

STEP 2ANALYSIS -GENERAL

17

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
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  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 19: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

D Principle of AnticipationThe principle of anticipation which underlies the income

approach to value states that market value equals the present value of future benefits

What does the person expect to get when buying the property

In the case of vacant commercial land this principle means that land values will reflect the capitalized value of anticipated net income from commercial development of land Similarly the value of vacant residential land will reflect the capitalized value of rents (either actual or imputed) attributable to the land The principles of anticipation and change underscore the need to estimate market value as of a given date

HIGHEST amp BEST USE IS THE KEY DETERMINATION IN VALUING VACANT LAND

Highest amp Best Use is the reasonable probable and legal use of vacant land or improved property that is physically possible legally permissible appropriately supported financially feasible and that results in the highest value

STEP 2ANALYSIS -GENERAL

18

Highest amp Best Use

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
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  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
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  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
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  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
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  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 20: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Physically Possible ndash access topography size etcLegally permissible ndash zoning deed restrictions approvalsFinancially Feasible ndash demand of useMaximally productive ndash best return scarcity of land

Highest and best use means that the market value of property depends on potential use rather than on current use alone Highest and best use is most obvious in the case of vacant land which commands value based on potential use The more profitable the potential use the higher the demand and market value Vacant land in an urban area commands greater value than vacant land in a rural area What use would bring the most profit or the highest value Consider limitations on the land- zoning restrictions etc

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

19

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
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  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
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  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 21: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

A Social FactorsSocial factors help explain patterns of land use as well as

demand and price People have basic desires for territory and companionship These desires are manifested in clustering of people near urban centers and in various uses of land Prestige also plays a major role in land use as individuals and groups seek particular locations for social and economic reasons

Examples New Subdivisions- we are social creaturesNeighborhood Influences

This will be considered in the neighborhood analysis

STEP 2ANALYSIS -GENERAL

Highest amp Best Use

20

3 Factors Affecting Land Value

Desire ndash desire to possessown the goodUtility ndash capacity of goods to excite desire to possess

(not usefulness of goods)Purchasing Power ndash desire must be supported by

financial ability to purchase (economic affects)

Scarcity ndash if there is a heavy supply (not scarcity) demand price amp value will be lower

2 Land Value is Created Through

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
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  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
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  • Slide Number 31
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  • Slide Number 33
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  • Slide Number 38
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  • Slide Number 41
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  • Slide Number 44
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  • Slide Number 53
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  • Slide Number 56
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  • Slide Number 58
  • Slide Number 59
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  • Slide Number 61
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 22: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

B Legal governmental and political policiesLegal governmental and political policies can increase or

decrease the demand for landAt the national level monetary policy can either spur or slow

economic growth and demand for land State and local governments often provide specific incentives or disincentives for land development through such mechanisms as taxation zoning and land use controls and rents controls The quality of local government services such as roads schools police and fire protection also affects demand

Examples Zoning 911 Recessions Tax Stabilization School Choice etc

C Physical environmental and locationPhysical environmental and location factors largely explain

patterns of land values within a city or market area In analyzing such factors it is useful to distinguish the concepts of site and situation Site attributes are size topography and other physical features of a given parcel Situation attributes focus on the location of a parcel relative to other places such as the central business district interstate access etc Site attributes affect land values because owners are able to use the landrsquos inherent resources situation attributes affect value because of nearness or accessibility to

other resources

STEP 2ANALYSIS -GENERAL

21

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 23: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

A successful land valuation study must include site and situation variables

Site factors will be considered in the land grading process Situation factors will be considered in the neighborhood and

general market analysis town to town

Stratification is the sorting of sales and other market data into homogeneous groups

In most towns this will be one land schedule and one analysis but more than one might be required if there is a commercial district ski area or lake area that might have a different market

Within strata land should be analyzed and valued according to common units of comparison Sales prices are expressed as price per unit The units chosen should conform to the basis upon which land is analyzed and sold in the market For residential land the parcel or lot the square foot or acre and occasionally the front foot provide appropriate units of comparison Large tracts of vacant land are often compared on a cost per acre basis Lake property is often compared on a front foot unit with variables for depth andor other attributes

STEP 2ANALYSIS -

SPECIFIC DATA

22

Market Analysis in Land Valuation

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
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General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 24: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleA Collect base information of all land sales which have

occurred within a certain market period (include all sales in the original spreadsheet valid and not-valid) Then filter spreadsheet to valid sales only with notes on all eliminated sales Depending on the size of the town this may require a range of sales anywhere from three years to five years (however if this is necessary you will certainly want to consider whether or not a time adjustment is needed) Base information should include name of buyer and seller location parcel size sale price and sale date

Begin with only raw land sales at this point If it is found that not enough information is available through raw land sales you may need to abstract land values from newly constructed houses or add information from a similar market

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 1-8 OF THE SPREADSHEET)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

23

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 25: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleInstructions for Use of Land Sales Analysis SheetList land sales in order of size of parcel small parcels first (or

list in any order and sort using excel) The various columns should at least show the following

Spreadsheet rsquosColumn 1 ndash Grantor (Seller)Column 2 ndash Grantee (Buyer)Column 3 ndash Describe location if possible such as ES

Higgins Road TH4 ndash West of red dwellingColumn 4 ndash Give parcel number or identification numberColumn 4a ndash Give sale number ndash this number will follow the

saleColumn 5 ndash Sale date Month and Year onlyColumn 6 ndash Sale price of landColumn 7 ndash Size in acreage (donrsquot write A for acreage) Column 8 ndash Price per acre Round to nearest dollar (or five

dollars) omit $ sign

Columns from Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

24

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
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  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
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  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
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  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
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  • Slide Number 44
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  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
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  • Slide Number 61
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 26: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

1 2 3 4 4a 5 6 7= 8x

Grantor GranteeDescriptive

Location Map LocSale

Sale Date

Sale Price Size

Sale Price per acre

Sam Sample Jane Example South Street 01-100 1 218 13200 2 6600

Teri Gildersleeve David Example Main Street 03-109 5 318 39600 2 19800

Sara Sample Christie Wright Main Street 03-229 6 218 33000 2 16500

Doug Lay Wayne Doe Maple Lane 05-320 7 118 50000 2 25000MaryAnn Gallivan Harry Bronson

Whipple Lane 02-101 17 317 60000 5 12000

Nicholas Middle Ryan DataWhipple Lane 02-130 10 717 72000 58 12414

Darwin Washington Louis Smith

Whipple Lane 02-244 11 617 60000 59 10169

Linda Lynds Ally Donalds South Street 01-120 12 517 62500 6 10417

George Ryan Thomas Pain South Street 01-230 13 917 72000 8 9000

Roger Harris Joseph Day West Street 04-090 9 1117 130000 10 13000

Sandra Connor Danny Sample Angel Ave 04-111 8 1017 87000 101 8614

Shelly Beach Tim Marlboro Atlantic Ave 03-299 2 817 43500 102 4265

Frank Franklin Sally SanbornSalmon Hill Road 02-277 18 1017 60000 25 2400

Joe Johnson Jack Jackson Jason Run 03-388 19 1217 130000 33 3939

Angel Towns Tina ValentineDungeon Drive 05-400 3 1217 180000 50 3600

Amelia Jordan Anthony Billock North Ave 04-020 4 318 150000 50 3000

25

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 27: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleB Arrange this information on a land sales analysis form

from smallest lot size to largest lot size Fill in any and all information that is available to you(You should be able to complete columns 1-8 from

information available to you)(Using Excel this can be done by sorting the information by

column 7)C Arrange all sales on a town map or sectional maps to

indicate location Use sale number or map number to indicate(This will give you a nice visual of the Locational Influences

in your town)

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

26

1 52 8 10

3 7 69 4

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 28: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

27

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

All Sales Unadjusted

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
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  • Slide Number 37
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  • Slide Number 40
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  • Slide Number 44
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  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 29: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleD Develop a scattergram of sales information Using graph

paper- label the horizontal axis as sizeacreage and the vertical axis as actual price per acre If you are using excel you will choose the sale price per acre and acre columns for the unadjusted scattergram Plot each sale on your graph In theory most sales that are way out of range will have an explainable reason

(Do a Scattergram of the information BEFORE the grade was applied and AFTER to the show the change in the curve and see potential neighborhoods or oddities)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

28

0

5000

10000

15000

20000

25000

30000

0 20 40 60

Sale

Pric

e pe

r acr

e

Acreage

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 30: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleE Determine whether or not your land schedule will

include water septic and site improvementYou will need to know this before you assess the grade of a

propertyConsider the followingDo most land sales in this area sell with water and septic and a

cleared site Do most have public water and sewer What is typical for my area If all or most sales will include these improvements your land

schedule can include these If all or most sales will not include these then your land

schedule should not include these Either way if you have some sales that do include public

water and sewer you will want to find two similar sales one with water and sewer and one without to determine the market value of each Be sure to note whether or not these values include water and sewer

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

29

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 31: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town (This step cannot be overstated ndash it is crucial)

What are itsrsquo characteristics (the ldquoaveragerdquo parcel in your town)

Location (to town and amenities main road or off main road neighborhood or rural)

Utilities (available at the road at site or would need work to get to parcel water and sewer access or limitations)

Road (paved gravel class 4 right of way)

Access ndash to parcel from closest road (at grade or above or below long drive needed)

Topography (flat and level or abovebelow grade open or wooded or a little of both)

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

30

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
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  • Slide Number 26
  • Slide Number 27
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  • Slide Number 30
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  • Slide Number 33
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  • Slide Number 37
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  • Slide Number 42
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  • Slide Number 44
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  • Slide Number 48
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  • Slide Number 50
  • Slide Number 51
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  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 32: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleF Attempt to get a good picture in your mind of an ldquoaveragerdquo

piece of property in your town

What are itsrsquo characteristics

View (local above average below average)

Drainage ndash if the parcel is not obviously wet assume average (Average below average or poor)

Waterway ndash (enhancing no influence detrimental frontage and access)

Environmental ndash (wetlands deeryards hazardous waste)

Flood Zone ndash (yes or no)

Size and shape ndash (conform to zoning limitations due to shape subdivision potential)

The average pieces will vary from town to town by acreage groupings and from different periods in the market to other periods

Document your description of average for different acreage sizes

EVERY TOWN AND EVERY MARKET IS DIFFERENT

STEP 2ANALYSIS -

SPECIFIC DATAMarket Analysis in Land Valuation

31

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 33: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

32

STEP 2ANALYSIS -

SPECIFIC DATAG Research all sales as thoroughly as possible (Very important)This may include any or all of the following mailing questionnaires on the sale to buyer and seller research of any deeds survey maps or other maps relative to the property site inspections and analysis of each property (this may need to be done more than once and should be done by more than one person) During the site inspection(s) gather as much information as possible such as access topography general appeal of the property drainage view location etc

VERMONT DEPARTMENT OF TAXES Sales Verification Form

TownSale Property

SELLERSale Price Sale Date

R E BrokerBroker Phone

Seller Phone ( ) Property TypeDoc No

QuestionsYes No

1 Was the sale between family members or close friendsRelationship

2 Did the sale involve a trade like kind exchange debt payment etcPlease explain

3 Was the property rented leased or occupied by the buyer

4 Is the property abutting a parcel already owned by buyer(any contiguous property even if divided by road or river)

5 Was this a distress sale (divorce estate court decree etc)Please explain

6 Were any back taxes liens etc included in the sales pricePlease explain

7 Were any substantial changes made to the property just before the salePlease explain

8 Did you provide (take back) any mortgage financing If so amount1st Mtg $ 2nd Mtg $ 3rd Mtg $

9 Did you get an appraisal before putting the property on the marketIf so the appraised value (not town listed v$

10 Do you feel that the sale price reflects a fair market valuePlease explain below if NO

11 Was any personal property included in the sale priceIf so what What is the value $

12 Was final sales price the result of negotiation the p Circle one YES NO

13 Additional Comments

Date Verifying Persons__________________PVR-VF001a Signature

You may want to take pictures

if you will have a sales

book with your land schedule

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 34: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleG Research all sales as thoroughly as possible

Note anything that strikes you as better than or worse than your ldquoaveragerdquo piece of property in town Make as many notes and observations as you can Make sure your information reflects the property as of the date of sale

STEP 2ANALYSIS -

SPECIFIC DATA

Market Analysis in Land Valuation

33

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 35: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleH Determine if a Time adjustment is Needed (spreadsheet

Column 9)The illustration on the next page is an analysis of resales

using paired sales analysis This is one method of determining time adjustments In order to do this analysis you must find properties which have sold more than once with the only difference between the 1st and 2nd sale being time

The steps are to1 list the sales2 calculate the percent change between the first sale price

and the resale price3 divide the percent change by the number of months and 4 estimate a time adjustment from the results

STEP 2ANALYSIS -

SPECIFIC DATA

34

Market Analysis ndash Time Adjustments

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 36: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 243 58000 63500 0948 21 00454 59500 61100 75 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

35

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 37: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

8x 9= 10

Sale Price per acre Time Adj

Sale Price time adj

6600 1 660019800 1 1980016500 1 1650025000 1 2500012000 1 1200012414 1 1241410169 1 1016910417 1 104179000 1 9000

13000 1 130008614 1 86144265 1 42652400 1 24003939 1 39393600 1 36003000 1 3000

36

Columns on Spreadsheet

Market Analysis in Land Valuation

Steps to developing a land scheduleColumn 9 Show percentage per month increase at top of column it may vary between large and small parcels or between areas of townColumn 10 Show either column 6 or 8 times column 9 value (rounded)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
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  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
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  • Slide Number 37
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  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 38: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleAssign a grade for physical (as best you can) while looking

at the property (Spreadsheet Column 11a)

You will need to assign a separate grade for physical attributes Look to the physical attributes first- if everything there is average most of the grade difference may be found in location Location (neighborhood) will show itself later This is only an estimate and will be used along with your notes and other information to adjust or modify later

Remember to think of the property in comparison to that ldquoaveragerdquo piece of property you have in your mindConsider views but be careful to consider whether the view is offset by the cost required to get to the views Application of grades will add or subtract a percent from the sales price to bring the value back to or up to ldquoaveragerdquo or 10

You can extract grade from your market depending on your volume of sales

(THIS INFORMATION WILL BE RECORDED IN COLUMNS 11 ndash 13 ON THE SPREADSHEET)

STEP 2

ANALYSIS -SPECIFIC

DATA

Market Analysis in Land Valuation

37

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
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  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
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  • Slide Number 37
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  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
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  • Slide Number 44
  • Slide Number 45
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  • Slide Number 47
  • Slide Number 48
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  • Slide Number 50
  • Slide Number 51
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  • Slide Number 55
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  • Slide Number 58
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  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 39: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

STEP 2ANALYSIS -

SPECIFIC DATA

38

Assigned Grade Land 1 Grade

Assigned Grade

SubjectSub-totals

Assigned Grade Land 2 Grade

Assigned Grade

SubjectUTILITIES

Electric 000 000 000 000None 000 000 000 000

000 000ROAD

Paved 000 000 000 000Gravel 000 000 000 000Class 4 000 000 000 000Right of Way 000 000 000 000Long ROW Unimp 000 000 000 000

000 000ACCESS

Good 000 000 000 000Average 000 000 000 000Poor 000 000 000 000

000 000TOPOGRAPHY

Level 000 000 000 000Rolling 000 000 000 000Steep AboveBelow 000 000 000 000

000 000VIEW

Long Range 000 000 000 000Above Average 000 000 000 000Average 000 000 000 000Below Average 000 000 000 000Detrimental 000 000 000 000

000 000DRAINAGE

Well 000 000 000 000Moderately Well 000 000 000 000Moderate 000 000 000 000Poor 000 000 000 000Swamp 000 000 000 000

000 000OTHER

Above Average 000 000 000 000Detrimental 000 000 000 000

Site Grade Land 1 Total Land Grade 000

If you use Other be sure you enter the formula and then delete it when you are finished with that parcel as it is to be used parcel specific

Rest of Land Grade Land 2 Total Land Grade 000

General Land Grades

LET THE SALE GUIDE YOU-REMEMBER YOU ARE CONCERNED WITH DETERMINING WHAT THE MARKET

WANTS AND NOT YOUR INDIVIDUAL PREFERENCES

Steps to developing a land schedule

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
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General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 40: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Land Grading Factors

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
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General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals Assigned Grade Land 2 Grade Assigned Grade Subject
UTILITIES
Electric 000 000 000 000
None 000 000 000 000
000 000
ROAD
Paved 000 000 000 000
Gravel 000 000 000 000
Class 4 000 000 000 000
Right of Way 000 000 000 000
Long ROW Unimp 000 000 000 000
000 000
ACCESS
Good 000 000 000 000
Average 000 000 000 000
Poor 000 000 000 000
000 000
TOPOGRAPHY
Level 000 000 000 000
Rolling 000 000 000 000
Steep AboveBelow 000 000 000 000
000 000
VIEW
Long Range 000 000 000 000
Above Average 000 000 000 000
Average 000 000 000 000
Below Average 000 000 000 000
Detrimental 000 000 000 000
000 000
DRAINAGE
Well 000 000 000 000
Moderately Well 000 000 000 000
Moderate 000 000 000 000
Poor 000 000 000 000
Swamp 000 000 000 000
000 000
OTHER
Above Average 000 000 000 000
Detrimental 000 000 000 000
Site Grade Land 1 Total Land Grade 000
If you use Other be sure you enter the formula and then delete it when you
are finished with that parcel as it is to be used parcel specific
Rest of Land Grade Land 2 Total Land Grade 000
Page 41: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Sheet1

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
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General Land Grades
Assigned Grade Land 1 Grade Assigned Grade Subject Sub-totals
UTILITIES
Electric 000 000
None 000 000
000
ROAD
Paved 000 000
Gravel 000 000
Class 4 000 000
Right of Way 000 000
Long ROW Unimp 000 000
000
ACCESS
Good 000 000
Average 000 000
Poor 000 000
000
TOPOGRAPHY
Level 000 000
Rolling 000 000
Steep AboveBelow 000 000
000
VIEW
Long Range 000 000
Above Average 000 000
Average 000 000
Below Average 000 000
Detrimental 000 000
000
DRAINAGE
Well 000 000
Moderately Well 000 000
Moderate 000 000
Poor 000 000
Swamp 000 000
000
WATERWAY
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
SHAPE
Enhancing 000 000
No Influence 000 000
Detrimental 000 000
000
OTHER
Above Average 000 000 000
Detrimental 000 000 000
Site Grade Land 1 Total Land Grade 000
Page 42: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

10 11 x 11a = 12 13 = (1012)

Sale Price time adj Appr Grade Comp GradeSale Price Adj time

amp grade

Loc Phy

6600 1 04 04 16500

19800 1 12 12 16500

16500 1 1 1 16500

25000 15 1 15 16667

12000 1 11 11 10909

12414 1 12 12 10345

10169 1 1 1 10169

10417 1 1 1 10417

9000 1 1 1 9000

13000 1 15 15 8667

8614 1 1 1 8614

4265 1 05 05 8529

2400 1 07 07 3429

3939 1 12 12 3283

3600 15 1 15 2400

3000 1 15 15 2000

39

Columns on Spreadsheet

Market Analysis in Land Valuation

One the first run the Location will be at a 1

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
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Page 43: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleAverage for your town | | |

9 10 Average 12

Ideally all grade factors would be market extracted This is accomplished by comparing two sales that are similar

in all attributes except for one Then the value percentage for that attribute can be calculated (market extracted)

Example of market extracted gradeSale 1 - $40000 ndash 2Ac 118Sale 2 - $48000 ndash 2Ac 218All Attributes Similar with exception of view48000 40000 = 12 grade for good view

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

40

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
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Page 44: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 6Grade

Assigned Grade Subject

Sub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 6 Sale Price $33000Sale Date 208Land Size- 2 Acres

Average 2 Acre Land Used to Develop Multipliers

41

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
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  • Slide Number 16
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Page 45: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 1

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 000 RollingSteep AboveBelow 080 080 Steep AbvBelow

080VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 040

Sale 1 Sale Price $13200Sale Date 218Land Size- 2 Acres

Access amp Topography MultiplierSale 1 13200Sale 6 33000

13200 33000 = 40

No difference from Sale 6 (Avg 2Ac) other than Access amp Topography

42

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
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  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
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Page 46: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 5

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 5 Sale Price $39600Sale Date 318Land Size- 2 Acres

Above Average View MultiplierSale 5 39600Sale 6 33000

39600 33000 = 120

No difference from Sale 6 (Avg 2Ac) other than View

43

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
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  • Slide Number 67
Page 47: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 7

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 7 Sale Price $50000Sale Date 118Land Size- 2 Acres

Neighborhood 2 MultiplierSale 7 50000Sale 6 33000

50000 33000 = 150

No difference from Sale 6 (Avg 2Ac) other than Location

44

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
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  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
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  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 48: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 11

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 11 Sale Price $60000Sale Date 617Land Size- 58 Acres

Average 6 Acre Land Used to Develop Multipliers

45

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
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  • Slide Number 37
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  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
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  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
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  • Slide Number 58
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  • Slide Number 67
Page 49: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 10

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 10 Sale Price $72000Sale Date 717Land Size- 58 Acres

Above Average View MultiplierSale 10 72000Sale 11 60000

72000 60000 = 120

No difference from Sale 11 (Avg 6Ac) other than View

46

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
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  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 50: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 8

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 8 Sale Price $87000Sale Date 1017Land Size- 101 Acres

Average 10 Acre Land Used to Develop Multipliers

47

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 51: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 9

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 100 PavedGravel 100 000 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 000 LevelRolling 100 100 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 150 Long RangeAbove Average 120 000 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

150DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 150

Sale 9 Sale Price $130000Sale Date 1117Land Size- 10 Acres

Long Range View MultiplierSale 9 130000Sale 8 87000

130000 87000 = 150

No difference from Sale 8 (Avg 10Ac) other than View

48

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 52: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 2

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 000 AveragePoor 050 050 Poor

050TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 050

Sale 2 Sale Price $43500Sale Date 817Land Size- 102 Acres

Poor Access MultiplierSale 2 43500Sale 8 87000

43500 87000 = 50

No difference from Sale 8 (Avg 10Ac) other than Access

49

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 53: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 3

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 000 Above AverageAverage 100 100 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

100DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 2

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 100

Sale 3 Sale Price $150000Sale Date 318Land Size- 50 Acres

Neighborhood grade is projected from other paired sales

50

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 54: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

General Land Grades Sale 4

Grade

Assigned Grade

SubjectSub-totals Multipliers for Variable Values

UTILITIES UtilitiesOn Site 110 000 On SiteAt Road 100 100 At RoadNone 080 000 None

100ROAD Road

Paved 100 000 PavedGravel 100 100 GravelClass 4 090 000 Class 4Right of Way 080 000 Right of Way

100ACCESS Access

Good 110 000 GoodAverage 100 100 AveragePoor 050 000 Poor

100TOPOGRAPHY Topography

Level 100 100 LevelRolling 100 000 RollingSteep AboveBelow 080 000 Steep AbvBelow

100VIEW View

Long Range 150 000 Long RangeAbove Average 120 120 Above AverageAverage 100 000 AverageBelow Average 090 000 Below AverageDetrimental 080 000 Detrimental

120DRAINAGE Drainage

Average 100 100 AverageBelow Average 080 000 Below AveragePoor 050 000 Poor

100WATERWAY Waterway

Enhancing 200 000 EnhancingNo Influence 100 100 No InfluenceDetrimental 060 000 Detrimental

100OTHER Neighborhood 1

Above Average 000 000 000Detrimental 000 000 000

000Total Land Grade 120

Sale 4 Sale Price $144000Sale Date 318Land Size- 50 Acres

Grade for view is projected from other paired sales

51

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 55: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleColumn 11 and Column 11a At time of inspection of

land sales preferably after analysis sheet has been completed through column 10 a judgment should be made as to the effect location (assume average 10 and let neighborhood show on scattergram and through value review)

Also at this same time special note should be made of the physical characteristics of the land Factors that should be considered include topography type and depth of soil shape of parcel etc It is recommended that you complete a data collection form for each parcel sold and unsold

Column 11a 10 represents average Consider physical characteristics only

Column 12 Composite appraisal grade is column 11 x 11a

This is the time to analyze your scattergram and consider if the outliers represent neighborhoods Do you have sales to prove neighborhood multipliers If so plug these into location factor

Columns on Spreadsheet

STEP 2ANALYSIS -

SPECIFIC DATA

52

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 56: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleColumn 13 Column 10 divided by column 12 brings all sale

prices to common ground (representing average or 10 value) ndash in theory at least either by value per acre or per parcel for average land in this size parcel

From column 13 should come the indicated values to record in the upper left-hand area of this sheet It would be desirable to circle or underline in color the values in column 13 that are closest to the values you record at top left of the page Record only those values that appear to be supported by column 13

(What you are attempting to find is 3 ndash 4 (at least) good (defensible) marker points ndash example ndash you are confident in your 2 acre your 10 acre your 50 acre and your 200 acre The land schedule program that we have at Property Valuation amp Review will logically fill in the points from there

Column 14 Yoursquore best estimate of value per acre or per parcel for average land for each parcel size represented

Column 15 Column 10 divided by column 14 The resulting factor will indicate whether the parcel of land sold above (over 10) or below (under 10) or at 10 value you have estimated for average land in this size parcel

This is a cross check of your average value compared to the grade you assigned

STEP 2ANALYSIS -

SPECIFIC DATA

53

Columns from Spreadsheet

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 57: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

10 11 x 11a = 12 13 14 15

Sale Price time adj

Appr GradeComp Grade

Sale Price Adj time amp

gradeEst Value Avg Land Sale GradeLoc Phy

6600 1 04 04 16500 16500 040

19800 1 12 12 16500 16500 120

16500 1 1 1 16500 16500 100

25000 1 1 1 25000 16500 152

12000 1 11 11 10909 11000 109

12414 1 12 12 10345 10000 124

10345 1 1 1 10345 10000 103

10417 1 1 1 10417 10000 104

9000 1 1 1 9000 9000 100

13000 1 15 15 8667 8700 149

8614 1 1 1 8614 8700 099

4265 1 05 05 8529 8700 049

2400 1 1 07 3429 3400 071

3939 1 12 12 3283 3200 123

3600 1 1 1 3600 2000 180

3000 1 15 15 2000 2000 150

54

Columns on Spreadsheet

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 58: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land schedule10 Begin testing and verifying your data Plug in your physical and location (assume 10 until you do

your first scattergram) grade estimates to your land sales analysis form Calculate the values through on the land sales analysis form (9-15) and compare them with average Do they seem to be in line

Compare your results with sales of similar sizes and similar neighborhoods Do they seem to be in line

Compare your result with the scattergram- are your average or close to average properties showing as such on the graph Rethink and possibly re-inspect and do more research as necessary adjust grades as appropriate

Market Analysis in Land Valuation

STEP 2

ANALYSIS -SPECIFIC

DATA

55

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 59: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Steps to developing a land scheduleColumn 16 Zoning district ndash letters and or numbers

designating the district with explanation of code at top of page

Column 17 Remarks column ndash Give brief description ndashdonrsquot start in with this lot is etc Simply state ndash Above grade ndash rolling or wet ndash below grade ndash 1 mile from electricity etc

When the analysis sheet has been completely filled in it should be studied in an effort to see if adjustments that have been made are supported or refuted by this market analysis

STEP 2ANALYSIS -

SPECIFIC DATA

56

Columns from Spreadsheet

Sale 16 17

Zoning Remarks Grade Adj1 steep rocky access5 above average view6 average 2 acre14 Father to son7 possible neighborhood17 underground utility10 above average view11 average 6 acre12 average 6 acre15 abutting Property

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 60: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

57

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical and Location)

Neighborhood 2 Now 2 sales are together

Neighborhood 2 Now 2 sales are together

0

5000

10000

15000

20000

25000

30000

0 10 20 30 40 50 60

Adjusted Sales(Physical Only)

Neighborhood 2

Neighborhood 2

STEP 2

ANALYSIS -SPECIFIC

DATA

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 61: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

A Establish Marker Points

Once you have completed the spreadsheet you should be able to identify lsquoMarker Pointsrsquo or three to four value points that you are confident you can defendsupport for per Ac value

Example- 2 Ac = adjusted value of $16500Ac = $33000

6 Ac - adjusted value of $10000Ac = $60000

10Ac - adjusted value of $8700Ac = $87000

50 Ac - adjusted value of $2500Ac = $125000

This is indicated by points on the curve amp groupings of value on the spreadsheet

B Develop Working Land Schedule

Submit marker points to NEMRC for a ldquoworkingrdquo land schedule This will be used for testing purposes and (may) not be hard coded into your computer system until you have finalized the values

STEP 3 Valuation

58

Project and Apply the Results

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 62: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

C Test Land Schedule

Begin testing with newer sales and improved sales As new land sales occur you will test this schedule In addition you will test sales of improved properties This assumes that you have completed an analysis of the costs and developed appropriate cost multipliers and site improvements values

D Apply the Results

Input land values to all properties (applying appropriate physical and location grades obtained through data collection and market analysis) and conduct review

STEP 3 Valuation

59

Project and Apply the Results

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 63: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

1 26250

2 330003 39750 1 67504 46500 2 135005 53250 3 202506 60000 4 270007 66750 5 337508 73500 6 405009 80250 7 47250

10 87000 8 5400011 87825 9 5482512 88650 10 5565013 89475 11 5647514 90300 12 5730015 91125 13 5812516 91950 14 5895017 92775 15 5977518 93600 16 6060019 94425 17 6142520 95250 18 6225021 96075 19 6307522 96900 20 6390023 97725 21 6472524 98550 22 6555025 99375 23 66375

Land Values

60

ldquoMarket Drivenrdquo Marker points

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 64: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Acres

Full (Site inclusive)

Value Acres(Without site)

Residual

26 100200 24 67200

27 101025 25 6802528 101850 26 6885029 102675 27 6967530 103500 28 7050031 104325 29 7132532 105150 30 7215033 105975 31 7297534 106800 32 7380035 107625 33 7462536 108450 34 7545037 109275 35 7627538 110100 36 7710039 110925 37 7792540 111750 38 7875041 112575 39 7957542 113400 40 8040043 114225 41 8122544 115050 42 8205045 115875 43 8287546 116700 44 8370047 117525 45 8452548 118350 46 8535049 119175 47 8617550 120000 48 87000

Land Values

61

ldquoMarket Drivenrdquo Marker points

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 65: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

62

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
  • Slide Number 20
  • Slide Number 21
  • Slide Number 22
  • Slide Number 23
  • Slide Number 24
  • Slide Number 25
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Slide Number 29
  • Slide Number 30
  • Slide Number 31
  • Slide Number 32
  • Slide Number 33
  • Slide Number 34
  • Slide Number 35
  • Slide Number 36
  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
  • Slide Number 46
  • Slide Number 47
  • Slide Number 48
  • Slide Number 49
  • Slide Number 50
  • Slide Number 51
  • Slide Number 52
  • Slide Number 53
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Slide Number 59
  • Slide Number 60
  • Slide Number 61
  • Slide Number 62
  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 66: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

1 There are no sales to indicate the value of water and sewer within the town

Talk to local real estate appraisers for what they are using to adjust Local contractors (well amp septic)

Look to abstract information from newly constructed homes2 How to tell if a time adjustment is needed

Look for two sales of the same or similar pieces of land and compare the change in price assuming all other possible variables are equal Do all sales using location and physical grade adjustments first Time adjustment should be evident and may be appearing in other sections of your market Market has been relatively flat for several years but may be on the verge of a change

3 Where to stop a land scheduleConsider where your market data runs out Is this because large

parcels are not typically for sale within your town Consider where does your market (price per acre) seem to stabilize Your sales and scattergram will begin to show this

4 Assessing property as one lot or several lots versus valuing as one lot or several lots

When considering the highest and best use of land it may be more logical to assess lots separately than as one These lots can be assessed separately while they are still listed together in order to conform to the definition of a parcel

Remember to apply your result consistently to all similar properties

Questions or Problems You May Encounter

63

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
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Page 67: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

5 What other checks and balances can you do on your proposed land schedule

Once you have done mathematical and logical checks as thoroughly as possible you should begin to inspect new residential construction where the property has sold recently Once you have calculated a cost new on the dwelling you should be able to test your land schedule and land improvements schedule against the sale prices of these properties(Typical land to building ratio = 2575) In other words typically if someone pays $100000 for the land and site improvements they will probably build at least a $300000 house Respectively you can deduce that on average if someone pays $400000 for a property at least $100000 is attributable to the land and site improvements

HOWEVER THIS IS NOT AN ABSOLUTE6 Not enough sales in your townOne option is to consider sales information from similar towns

consider the similarity of the market and what factors may affect differences

Another option is to use the method of abstraction- using a new house that has sold (less than 5 years old- or 10 if absolutely necessary)- attempt to get actual costs The sale price minus actual costs of construction including site improvements (well septic driveway electric)= should equal land value Remember the general rule of thumb of 25 land value

Questions or Problems You May Encounter

64

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Slide Number 16
  • Slide Number 17
  • Slide Number 18
  • Slide Number 19
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  • Slide Number 26
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  • Slide Number 28
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  • Slide Number 33
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  • Slide Number 40
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  • Slide Number 49
  • Slide Number 50
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  • Slide Number 61
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  • Slide Number 63
  • Slide Number 64
  • Slide Number 65
  • Slide Number 66
  • Slide Number 67
Page 68: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

Important things to remember A land schedule is a work in progress and must be

checked adjusted and rechecked You may not be completely satisfied with your land schedule until half way (or more) through a reappraisal or at least until all sales are reviewed and checked (Improved and unimproved)

Land schedules will not be valid into eternity As the market changes- there may be a need for adjustments to the overall land schedule or portions thereof (Principles of change and changes in economic factors or Supply and Demand)

A land schedule as is the way with all assessing is only as good as the information you put in and the information you know when you are developing the land schedule That is why it is crucial to fully inspect and analyze all sales data as many times as necessary

Always do your land schedule work in pencil You may need to erase and change things many times Using an excel spreadsheet on computer will allow you to make changes and sort information easily

Be prepared to obtain help when needed to develop an accurate land schedule You may need to hire a contract appraiser or at a minimum seek assistance from your district advisor in completing a land schedule

Land Valuation Review

65

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
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  • Slide Number 35
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  • Slide Number 37
  • Slide Number 38
  • Slide Number 39
  • Slide Number 40
  • Slide Number 41
  • Slide Number 42
  • Slide Number 43
  • Slide Number 44
  • Slide Number 45
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  • Slide Number 50
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  • Slide Number 64
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  • Slide Number 66
  • Slide Number 67
Page 69: Land is basic to real estate appraisal. - Vermont...Land is basic to real estate appraisal. It is one of the essential components of property: land improvements to the land (site improvements)

[Example (67800-65000)65000 =043]

(Average = sum percent per month (0217) divide by how many (5)) Average percent per month 0043 x 100 = 43 per month

Comp 1First Sale (10 months ago) 65000Current Sale (Present time) 67800Increase in value over ten months 2800(67800 - 65000) 65000 = 043 x 100 = 43 change67800-65000 = 2800 65000 = 043 10 mths = 0043 per month

This method is valid if the ListerAssessor is confident that no other changes to the property physical or otherwise have occurred to change the property value

Paired sales analysis represent the same property having sold twice or two sales of very similar properties This requires the ListerAssessor to locate properties that are very similar in all locational and physical characteristics

Market Analysis ndash Time Adjustments

Comp First Sale Second Sale Percent Change

Months between

sales

Percent per month

1 65000 67800 0430 10 00432 73400 81800 1144 24 00473 58000 63500 0948 21 00454 59500 61100 0269 7 00385 62200 65500 053 12 0044

STEP 2ANALYSIS -

SPECIFIC DATA

66

  • Slide Number 1
  • Land Schedule Training
  • Why do you need a land schedule
  • Why do you need a land schedule
  • Land Appraisal Process
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
  • Slide Number 9
  • Slide Number 10
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
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