Land Property Appraisal Services
Land appraisal services to Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Eagle, Elbert, El Paso, Gilpin, Jefferson, Larimer, Summit and Weld County.
Colorado Appraisal Consultants provides real estate appraisal services for land properties. Location remains one of the most important aspects of a property, but in some cases, more important factors can be potential development density, infrastructure improvements, construction costs, zoning, highest and best use, and property history.
Colorado Appraisal Consultants has experience providing appraisals for the following purposes:
- Expert witness
- Dispute Resolution
- Gift Tax
- Estate Settlement (IRS-income tax)
- County Tax Appeal
- Debt Restructuring
- Foreclosure (REO)
- Private Financing
- Mortgage Financing/Lending (including SBA)
- Metro District Financing
- Internal Decision Making
- And more…
Types of Value
The most common type of value ordered in a land appraisal is Market Value. This is because market value assumes a typical marketing time and both the seller and buyer are presumed to be aware of the relevant facts. In a situation where the selling party is under pressure to sell quickly (faster than a typical market-scenario) Disposition Value or Liquidation Value may be pursued. Land appraisals used for estate settlement purposes contemplate fair market value, as of (effective date) the date of passing.
Types of Land Appraisal Reports
There are a variety of appraisal reporting options for land appraisals, the main differences relate to the needs of the client and the amount of detail presented in the report. Read more about appraisal reporting options here.
Land Appraisal Pricing
How much do land appraisals cost? Please use our online pricing form for appraisal pricing specific to your property and needs.
Land Uses We’ve Worked With
We are qualified to appraise a variety of Land configurations, including:
- Proposed vertical development
- Land development
- Ground leases
Subdivision Development Method (SDM)
For land subdivision projects, the Subdivision Development Method can be a useful way to understand the bulk value of the site. It is similar to the Discounted Cash Flow (DCF) model for an income producing property.
Application of the SDM is most appropriate and useful under the following circumstances:
• It is most relevant when land is not in raw acreage and an actual subdivision of legally marketable individual finished lots exists on the ground pursuant to an executed subdivision or development agreement, and subdivision is the highest and best use.
• It is useful as a means of testing the financial feasibility of acquiring a raw tract at a specified price under conditions of assumed certainty where all of the outcomes of the subdivision process are predicated on the stated cost and revenue inputs and financial goals of the developer.
• It is important for use in loan underwriting of development financing, where it is critical to schedule mortgage advances to correspond to the development phasing of a subdivision and link loan repayment, with partial discharges, to lot sales (absorption), thus ensuring that the lender has adequate security at all times.
The steps involved in the execution of the SDM are listed as follows:
- Accurately determine the highest and best use of the land,
- Create or affirm a supportable subdivision development plan,
- Determine the timing and cost for approval and development (including mitigation needs and costs of obtaining development entitlements),
- Forecast a realistic pricing schedule over time,
- Forecast accurately the lot absorption rate and price mix (including properly supported projections of community or market growth over the absorption period),
- Estimate accurately the staging or phasing of land development and related expenses,
- Forecast marketing and related holding expenses over the absorption period,
- Estimate the annual real estate taxes,
- Include overhead and an entrepreneurial [developer’s] profit allowance in the discount rate and/or line item allocation for entrepreneurial [developer’s] profit, and
- Estimate the appropriate discount rate consistent with the selection of the line item allocation for entrepreneurial profit
This method is best when an understanding of the entire project value is needed.
We are happy to answer any additional questions you may have. Please use this contact form or pick up the phone and dial 720-315-2530