A Billion in Land: No Appraisals?
The
If you buy a home the bank requires an appraisal.
But the ‘Land Acquisition Office’ says that’s folly. It’s administrators want to buy a billion dollars in land without a single appraisal. It doesn’t believe in them.
So back in February the Land Acquisitiors told the School Board buying 108 acres near Apex for $8.7 million was a great deal and the Board agreed – until the press reported the seller had bought the same 108 acres ten months before for $3.25 million.
That’s when either the Board or the
Betty Parker, who’s in charge of buying the real estate for the School Board, didn’t bat an eye. Appraisals, she said adamantly, are unreliable. Then she made a peculiar argument the land is worth the $8.7 million she says it is.
Now, granted, there are appraisals and there are appraisals. But what other ‘objective’ measurement is there? Every bank uses them. So does
And what was Ms. Parker unusual argument? It’s based on her idea of a free market. She says the $8.7 million was a fair price for the property because that’s what the School Board agreed to pay. “Fair market value,” Mrs. Parker argues, “is defined as what a willing buyer will pay a willing seller in a free economy.”
In other words she’s saying since she was willing to pay $8.7 million for the land that’s its free market value. She misses the point that people have been known to overpay, even in a free market.
The
Then County Commission Chairman Tony Gurley sent the Land Acquisitions Office a pretty clear message of his own. “If they expect us to approve it [any more land purchases],” he said, “There had better be an appraisal.”
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A Billion in Land: No Appraisals?
The
If you buy a home the bank requires an appraisal.
But the ‘Land Acquisition Office’ says that’s folly. It’s administrators want to buy a billion dollars in land without a single appraisal. It doesn’t believe in them.
So back in February the Land Acquisitiors told the School Board buying 108 acres near Apex for $8.7 million was a great deal and the Board agreed – until the press reported the seller had bought the same 108 acres ten months before for $3.25 million.
That’s when either the Board or the
Betty Parker, who’s in charge of buying the real estate for the School Board, didn’t bat an eye. Appraisals, she said adamantly, are unreliable. Then she made a peculiar argument the land is worth the $8.7 million she says it is.
Now, granted, there are appraisals and there are appraisals. But what other ‘objective’ measurement is there? Every bank uses them. So does
And what was Ms. Parker unusual argument? It’s based on her idea of a free market. She says the $8.7 million was a fair price for the property because that’s what the School Board agreed to pay. “Fair market value,” Mrs. Parker argues, “is defined as what a willing buyer will pay a willing seller in a free economy.”
In other words she’s saying since she was willing to pay $8.7 million for the land that’s its free market value. She misses the point that people have been known to overpay, even in a free market.
The
Then County Commission Chairman Tony Gurley sent the Land Acquisitions Office a pretty clear message of his own. “If they expect us to approve it [any more land purchases],” he said, “There had better be an appraisal.”
Click Here to discuss and comment on this and other articles.