Lot Ratio analysis tables are for using the allocation method to estimate the retail value of a lot type, in cases where individual lot sales are not available in the market or as a supplementary method. When doing a Sales Comparison Approach for a subdivision appraisal report, assuming a sell-off of lots, you might be able to collect some bulk sales of lots and use the land adjustment grid to adjust on a per-lot basis and develop a bulk sale value for the subject's lot using actual bulk sales of lots. If there are no bulk sales of lots available, or you need another method to estimate the bulk value of the subject lots, you can use this lot sales sheet.
This guide shows how to access and navigate the LOTSALES | Lots Ratio’s sheet in the Subdivision Valuation Workbook
Subscription Tier: Professional (with the Subdivision Add-on) or Enterprise
- This is not included in the base Professional subscription and requires an add-on service. If you would like to discuss accessing the Subdivision Workbook and Report Template, please contact your Client Success Manager or Support@valcre.com to assist.
- Subdivisions must be enabled by a Valcre administrator.
- Valcre Add-In version 18.104.22.168 or higher
- Valcre Workbook version 1.4.25 or higher
- A partially started (at minimum) Job in Valcre Online
- Set up the Valuation Workbook for Subdivision work.
Table of Contents
Step 1: Access the Lot Ratio Analysis sheet by selecting LOTSALES from the bottom navigation menu.
Step 2: Select the Subject’s Lot Type
This is why giving the subjects lots unique names in the Valcre Online Lots tab is essential- otherwise, the system won’t be able to differentiate between the different lot types.
Step 3: Review the Minimum Home Price
This information is pulled directly from Valcre Online. As with all yellow fields, you can override this field.
Lot Ratio Analysis
The MIN, MID, and MAX for each home price identified in Valcre Online are shown here.
Step 1: Using comparable sales, enter the percentage range of what lots typically sell for compared to the finished home to get the lot price range.
The example below shows that typically, lots sell for 20-25% of the finished home price.
Step 2: Repeat the above steps for all Lot types.
Pro tip: Unused tables can be hidden. As with any table, do not delete columns or rows; it will cause workbook errors to form and prevent their usage in the Word Report file. Hide any tables, rows, or columns by highlighting the area you wish to hide, right-clicking, and selecting hide.
Retail Lot Value Conclusions
The Retail Lot Value Conclusions table will summarize the above tables.
Step 1: Hide any unused rows
Step 2: Determine how you would like your figures to be rounded using Round to Nearest.
Step 1: Indicate the Lot Type for which you wish to apply a bulk discount.
The Quantity and Retail value entered into Valcre Online and the Aggregate of Retail from the Retail Lot Value Conclusions table will populate this table. The Aggregate of Retail is the Quantity multiplied by the Retail Value.
- Retail - The average value a lot would sell for.
- Aggregate of Retail - The Quantity of lots multiplied by Retail (Value).
Step 2: Enter the bulk discount rate using the Less Bulk Discount field.
This will apply the discount to the Subtotal/Average Aggregate of Retail to give you the Bulk Sale Value Indication.
Step 3: Select what the lots apply to: As-Is Market Value or Prospective Value.
- Pro-Tip: Set up the Prospective Value using Value Scenario 2 in the HOME sheet. (Line 302). Select Yes in Value Scenario 2, and select Prospective Upon Completion or Prospective Market Value Upon Completion in line 303 of the HOME page.
Step 4: Select how you would like to round to the nearest using the Round to the Nearest field next to the Bulk Discount table.
Step 5: Repeat for each phase/type of lots applicable.
Once you have completed this sheet, you can begin work in the LOTCOST sheet.
For additional questions about using the LOTSALES sheet, please contact Valcre Support using the live chat feature in Valcre Online or Valcre Mobile.