Real Estate Division

CPD 134 - Rural and Remote Property Valuation

Pre-requisite: Students will benefit from an understanding of real property appraisal fundamentals and techniques (BUSI 330, CPD 130, or equivalent)

Rural and remote properties are diverse, ranging from semi-suburban residential dwellings, to equestrian facilities, hobby farms, commercial farms or large recreational acreages. Buyers of these types of properties are motivated for various reasons: recreational, investment and/or residential lifestyle making rural property valuation assignments particularly challenging. The distinction between commercial and non-residential uses or potential uses are not always obvious, highlighting the importance of highest and best use analysis and scope of practice considerations in the valuation of these types of properties.

Real estate professionals in all areas of practice may come across rural and remote properties for purposes of development, sales, mortgage financing, appraisal or property tax assessment. In all of these contexts, the practitioner will ideally have a working knowledge of the real estate asset and the factors that affect its market value. This course is suitable for anyone in these contexts. Students will ideally already have a basic understanding of valuation methods and techniques. The course will focus on those issues that differentiate and impact the valuation of rural and remote properties.

Course Outline

Lesson 1: Rural and Remote Property Valuation

  • Instructor's Comments
  • Highest and Best Use of Rural and Remote Properties
    • Highest and Best Use - Actual or Assumed
  • Land Description and Analysis
    • Lot Size
    • GIS Mapping and Orthophotos
    • Effective Area
    • Land Size Curve and Adjustment Table
    • Land Attributes and Features
    • Improvements on Rural Properties
  • Further Considerations in Rural Property Valuation
    • Agricultural Valuation
    • Conservation Easements
    • Wetlands
    • Timber
    • Gravel and Mineral Resources
  • Case Studies in Rural Property Valuation
    • Case Study 1: Mushroom Farm
    • Case Study 2: Rural Acreage
    • Case Study 3: Rural Acreage with Multi-Family Development Potential
    • Case Study 4: Unauthorized Additions
    • Case Study 5: Analyzing Effective Area
    • Case Study 6: Timber Value Contribution
    • Case Study 7: Cattle Ranch Appraisal

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