Appraisal dilemma!!!

di·lem·ma (dĭ-lĕm'a) n.
A situation that requires a choice between options that are or seem equally unfavorable or mutually exclusive.

Appraisals - the black box of the hard money lender...

Consider the scenario: Two identical 5 acre parcels sitting side by side in Oshkosh, Wisconsin.

Parcel #1 is owned by Jack Handey. The property has been in the family for 30 years and he just loves the natural look and feel of the vegetation: pasture type grass and nice tree cover. Jack loves bird watching on the property and would never want to disturb this little slice of heaven. Even though Jack feels the tax value of $70,000 is way to high, he loves this little paradise.

Parcel #2 is owned by Big Thinkers, LLC. They bought the property last year and intend on building a new "Super Jackpot" Casino and Hotel on the property. Once the magnificent casino and 20 story hotel is completed, it will be worth about $50 million dollars. The cost to construct and complete the "Super Jackpot" will be $40 million dollars.

By using simple math, we can obtain the current land value: $50 mill - $40 mill = $10 million

Question: Two identical parcels - is the value $70,000 or is the value $10 million?

Did you know you could get a local appraiser to give you either value?