Letter: Ideas on property valuations

In response to your inquiries on property values for appraisals, you are right that it is hard to come up with a good one. The big problem I have found is the appraisers look for comparables and end up using lots and homes in the area that have nothing to do with the airparks. Kind of trying to compare a waterfront home to one in the desert.

The other thing I have found is that price varies a lot from airpark to airpark. Example: I could have bought a 3-acre lot last winter at the Kelly Airpark south of Denver for $75,000. I just sold a 3-acre lot at Erie Airpark just north of Denver for $285,000. Both lots were the same as far as utilities in place. The big difference in price I think is the size of the runway and services offered at the Erie Airport that is city-owned and maintained. Also, the ease and short distance to the Denver – Boulder area is a factor. The Kelly Airpark is a nice airpark with nice homes being built but was too far south of Denver for us.

We sold the lot in favor of buying a house that was already built at the Erie Airpark. The home was built in 1980. It is a 4-bedroom, 2.5-bath, 2-story home with 2,666 share feet and another 1,000 sq ft of unfinished basement. It includes a large 4-car garage and no hangar. It is on two acres with good runway access. We paid $450,000.

The new homes that are going up at this airpark are now all close to and exceeding the $1 million range. With all lots sold and only a few left vacant for building I head that one of the homes sold in the same price range we paid was going to be scrapped for a bigger and better one.

Hope this information is of help.

Don Welliever
Denver, CO