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Interim Use?

Discussion in 'Urgent - Help Needed' started by Rick Phillips, Apr 14, 2010.

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  1. Rick Phillips

    Rick Phillips Member

    0
    Jul 2, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    The subject is 4,000 sq. ft. on .3 acres of land.

    Typical of the neighborhood are semi-detached homes on .1 acres of land.

    Zoning is legal for either detached or attached. Other legal issues (setbacks, etc.) would allow for a conversion to attached.

    Construction costs and current prices make such a conversion not financially feasible; however, the neighborhood prices are rising.

    In this situation would the current use be considered an "interim use?"
     
  2. Denis DeSaix

    Denis DeSaix Elite Member

    234
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    I'm fuzzy here on what exactly exists and what the future use can be?
    Is what exists a detached 4,000sf home on a lot that can be subdivided?
    Is the future use the potential to subdivide the lot and create semi-detached homes?

    I'm probably not familiar with exactly what some of those terms means in your market.
     
    Last edited: Apr 14, 2010
  3. Rick Phillips

    Rick Phillips Member

    0
    Jul 2, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    It can be subdivided, either for attached or detached homes. The issue, though, is the cost (vs. what they would sell for afterward). To me, that means the current use is the highest and best use, no?
     
  4. Denis DeSaix

    Denis DeSaix Elite Member

    234
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    The current use is probably the highest and best use if the likely buyer is going to keep it as-is vs. subdividing/modifying it.
    So, would a developer/investor-buyer with the intent of reconfiguring the subject out-bid an owner-occupant buyer? :shrug:
    My guess is probably not. At the point where the investor/developer has to purchase the property at a price that creates a financially feasible development (which includes a profit), an owner-occupant would over-bid in order to live at the property as-is.
     
  5. PropertyEconomics

    PropertyEconomics Elite Member

    1
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico


    Highest and Best use is as of the effective date .. if it is not financially feasible as of the effective date .. attached homes (or conversion, etc) is not the present Highest and Best Use.
     
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