Richard, there are several ways to calculate the NPV of vacant land. It involves a HABU assessment then apply risk and discount rates to the value to get an actual cash value. As an example, I had a client reviewing a HABU of 2200 Acres in Fl with a value of $48M from an MAI Appraiser; however, after applying an appropriate discount rate and risk factor, the value ended as $7M. This was in line with comparable sales in the area. I would strongly recommend you contact a local CCIM professional in your area, or at the very least someone who has completed the approved CCIM Institute courses. Look for the Designation letters CCIM after a professionals' name or go to www.ccim.com and look up a professional in your area. You may also be able to find a ALC as well. Accredited Land Consultants will use similar calculations. Many CCIMs are also ALCs. If you can find a professional with both, you are home free. Good luck. Ian Johnson, GRI,TRC.
Oct 27, 2008