Valuing land... realtor or appraiser

[ncornilsen]

I have a line on a piece of land (in the family) where I may meet the 1% rule, and is land we'd like to own due to our connection with it.

the estate representative has contacted a real estate agent who says it's worth X.  We think it's worth quite a bit less... due to having a barn on it that has negative value (falling down, dangerous) and an 80's mobile home on it.  It's a  bit over 1 acre.

The agent didn't provide a CMA with comparables, they just sent an email with a number. Which happens to match the Zillow estimate.

Should we hire an appraiser to value it? Perhaps another realtor?
How do you finance land with an manufactured home?

Thanks
-Nick

[LordSquidworth]

Probably wouldn't hurt. If you're getting a loan would need an appraisal anyways. The real estate agent looking after the estates interest?

A mobile home that old is likely valueless for loans.

[Another Reader]

There is no point in paying for an appraisal unless you have a seller that is motivated to sell and will accept fair market value.  In your shoes, I would contact the estate representative with an explanation of your opinion of the value of the property.  I would politely ask for the basis of their agent's opinion of value, as it does not agree with your opinion based on your evidence.  Their agent could be estimating high to get the listing or there could be factors of which you are unaware.  If you don't get a response or you get an unreasonable response, then you can tell the estate representative that you are interested in buying the property at your price, and to contact you if they do not sell at or near their agent's price.  Not much else you can do if the seller is not knowledgeable or not motivated.

[Fishindude]

There is no point in paying for an appraisal unless you have a seller that is motivated to sell and will accept fair market value.  In your shoes, I would contact the estate representative with an explanation of your opinion of the value of the property.  I would politely ask for the basis of their agent's opinion of value, as it does not agree with your opinion based on your evidence.  Their agent could be estimating high to get the listing or there could be factors of which you are unaware.  If you don't get a response or you get an unreasonable response, then you can tell the estate representative that you are interested in buying the property at your price, and to contact you if they do not sell at or near their agent's price.  Not much else you can do if the seller is not knowledgeable or not motivated.

I agree with this.
No point spending $$ on an appraiser, jut give them an offer.

There is a deal almost exactly as you describe right down the road from me currently, it's listed at $56,000.
My opinion it's worth about $40,000    Be interesting to see what it goes for.

[Telecaster]

There is no point in paying for an appraisal unless you have a seller that is motivated to sell and will accept fair market value.  In your shoes, I would contact the estate representative with an explanation of your opinion of the value of the property.  I would politely ask for the basis of their agent's opinion of value, as it does not agree with your opinion based on your evidence.  Their agent could be estimating high to get the listing or there could be factors of which you are unaware.  If you don't get a response or you get an unreasonable response, then you can tell the estate representative that you are interested in buying the property at your price, and to contact you if they do not sell at or near their agent's price.  Not much else you can do if the seller is not knowledgeable or not motivated.

Agreed, with the caveat is that sometimes land is hard to value.   If the two sides are far apart (which in this case they might be), you could point to the appraisal as the starting point for negotiations. 

[clarkfan1979]

I bought a primary home in Fort Myers, FL in January 2012. It became a rental in August 2015. Ever since I have owned this property, there has been two empty lots for sale directly neighboring my property. About 90% of the lots in the neighborhood are exactly the same size (8,100 sq. ft.). The empty lots traditionally sell for 30K to 40K.

On May 22, 2019, one lot sold for 50K and the other lot sold on July 4, 2019 for 64K.

I just did a cash-out re-fi on the rental in October 2019. The appraiser estimated my lot value at 30K. It is exactly the same size as the other two lots that just sold for 50K and 64K (8,100 sq. ft.). I think land can be difficult to value.

The overall appraisal came in at what I think it should have (250K), so I am not complaining.

[Another Reader]

I bought a primary home in Fort Myers, FL in January 2012. It became a rental in August 2015. Ever since I have owned this property, there has been two empty lots for sale directly neighboring my property. About 90% of the lots in the neighborhood are exactly the same size (8,100 sq. ft.). The empty lots traditionally sell for 30K to 40K.

On May 22, 2019, one lot sold for 50K and the other lot sold on July 4, 2019 for 64K.

I just did a cash-out re-fi on the rental in October 2019. The appraiser estimated my lot value at 30K. It is exactly the same size as the other two lots that just sold for 50K and 64K (8,100 sq. ft.). I think land can be difficult to value.

The overall appraisal came in at what I think it should have (250K), so I am not complaining.

The appraiser probably did a cost approach to value and needed a land value that would make the result "work."  Not sure what the residential appraisal form guidelines are, but s/he could have used raw, unimproved lot value.