Appraisal Procedure on Acreage

[Kathryn Bowden]

We are selling our home on five acres (4.97), and will be entering into a contract shortly (if all goes as planned).  My question is when the appraisal is done, is there a standard of the comps they pull on the range of acreage.  Btw, this will be a conventional loan.  For example, would they only pull 1-10 acres; or up to 5 acres; or anything over 1 or 2 acres, etc.  An important note is that this is a small town, so there isn't a ton of comps.  So in my opinion, the broader the search the better a picture it gives on our value.  Otherwise it could be skewed, and maybe not in our favor.  When I look at the comps, I pull up 1+ acres with mnfd home, because there's only a handful above maybe 2 or 3 acres.  A couple of the best ones for us are more like 12 - 16 acres.  They sold for more than we are asking, but I think they're really good comps, as one is right up the street from us, and just very similar in every other way besides less acreage.  I'm worried that the appraiser would just pull up some formula that would leave out these important comps.  Is there a standard for this?  I'm in Oregon if that makes any difference.  I am worried, as I had a bad experience with an appraisal recently on another house, which was a first.  Also, people around here seem to complain about the appraisers.  Thanks for your insight.

[Jacob Wathen]

Hello @Kathryn Bowden! That is certainly a great question for an appraiser. I am. realtor and I can only say how I prepare CMAs for "unusual property". Anything that is difficult to find comps I will just continue to broaden the search until I have a good handful of properties that are close enough to the subject property to determine value. What would likely happen is an appraiser would try to start off with 1-10 acre properties and if they do not find the comps they need they will go to 15 acres or whatever it may be until they feel like the know the true value of the subject property. Lot size is only one of the many factors that go into a home valuation and if things like the condition or location do not match the ones that are pulling up they will continue to broaden. Also, if you believe there is a serious issue with the appraisal after you review it you can contest it and potentially get a second opinion.