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  #1  
Old 04-14-2010, 05:11 PM
Rick Phillips's Avatar
Rick Phillips Rick Phillips is offline
 
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Location: Arlington, VA
State: Virginia
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Default Interim Use?

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?"
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Old 04-14-2010, 05:19 PM
Denis DeSaix Denis DeSaix is offline
 
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Location: Northern California
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Quote:
Originally Posted by Rick Phillips View Post
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?"
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 by Denis DeSaix : 04-14-2010 at 05:24 PM.
  #3  
Old 04-15-2010, 04:32 PM
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Rick Phillips Rick Phillips is offline
 
Join Date: Jul 2004
Location: Arlington, VA
State: Virginia
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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  
Old 04-15-2010, 07:39 PM
Denis DeSaix Denis DeSaix is offline
 
Join Date: May 2005
Location: Northern California
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Originally Posted by Rick Phillips View Post
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?
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?
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  
Old 04-15-2010, 08:01 PM
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PropertyEconomics PropertyEconomics is offline
 
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Location: Central New Mexico
State: New Mexico
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Quote:
Originally Posted by Rick Phillips View Post
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?"


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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