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Is there a statistical method for determining "present land usage"

Discussion in 'General Appraisal Discussion' started by KJR2008, Oct 19, 2010.

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  1. KJR2008

    KJR2008 Junior Member

    0
    Jun 3, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    "Present land usage" is there a more accurate way to determine the usage other than a visual inspection of the neighborhood estimate? Any data sources, educated guess formulas welcomed. Thanks
     
  2. eld2310

    eld2310 Member

    6
    Jan 3, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    I came up qith a system where I use the tax records and land use codes. Generally I search land uses within a radius of 1/2 mile from the property. The report I'm working on right now ended up like this:

    Total # of tax lots: 3,292
    SFD: 3,057
    2-4 Family: 37
    5+ Family: 38
    Commercial: 85
    Other: 75

    I then convert those numbers to simplified percentages for the report. Most appraisers I know use the eyeball-estimator technique, though. My numbers are probably more consistent and accurate but I'm not sure a few percentage points really matters in the end, assuming that the guestimating is based on knowledge of the area and not just pulled out of a hat.
     
  3. CANative

    CANative Elite Member

    534
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
  4. Mr Rex

    Mr Rex Elite Member

    286
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
  5. Calvin the Airedale

    Calvin the Airedale Elite Member
    Gold Supporting Member

    0
    Aug 17, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    The community in which you're appraising may have a master plan on their web site. If so, they often break down the types of land use by acreage.

    There are a number of ways to measure land use: by acreage devoted to land uses; by units devoted to such uses; by taxable income obtained from uses, etc., etc.

    I suspect, like CANative, most people just guess, based on their experience and knowledge of the area or neighborhood. While the term guess has come to be a dirty word in the context of appraising, this is not an inappropriate method by those who possess the requisite knowledge and experience in a given market.
     
  6. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    568
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    If we are talking about the neighborhood land usage I would not consider the neighborhood to have 3,300 parcels. :shrug:
     
  7. Kathleen O. Farrelly

    Kathleen O. Farrelly Junior Member

    1
    Dec 16, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    Is there a Zoning Ordinance in this neighbohood?

    Just curious because some townships in my area have no zoning and I am often challenged to determine land use percentages.
     
  8. Metamorphic

    Metamorphic Senior Member
    Gold Supporting Member

    68
    Mar 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I'm still waiting to find an authoritative description on what they want here.

    Is it % of literal use? Like if you had a fully built out neighborhood that was all 1 acre parcels and each had a 4356 sf house on it it would be 10% Residential, 90% vacant.

    Is it % of intended use? Like if 10% of lots are zoned commercial and 90% are zoned residential, those are the numbers you use even if not 1 stick is built on any of the lots and its just a big patch of vacant forrest.

    Is it % of actual use based on zoning where only developed parcels count? Like if 50% of the parcels, which are 100% residential zoning, are actually built with a house then its 50% residential, 50% vacant.
     
  9. route1pj

    route1pj New Member

    0
    Sep 28, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The key word is neighborhood. I rough count the number of types of zoning and buildings "within the neighborhood". Atherton, CA has zoning that requires each SFR to be located on a minimum one acre site (43,560 sq. ft.). Thirty houses in a particular neighborhood might represent 100% One-Unit. Other communities have neighborhoods with a corner convenience store or shopping mall that seldom represents over 1-5% of the Present Land Use %. The neighborhood probably changes when you have a group of industrial, commercial, and multi-family land uses.

    I like the idea of having tax records and land use codes, but they generally extend outside the subject's neighborhood.

    Harrison's Illustrated Guide has some model comments that speak directly to reviewers and underwriters.
     
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