Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Commercial/Industrial Appraisals
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 09-27-2011, 07:49 AM
justinschroeder's Avatar
justinschroeder justinschroeder is offline
 
Join Date: Sep 2007
State: Illinois
Professional Status: Certified General Appraiser
Posts: 86
Default Outlot Appraisal

I have been asked to appraise a 1 acre outlot in a residential area that has a sewer and drainage easement on the whole parcel which limits its use to only greenspace. The owner can garden it and/or landscape it with "small" shrubs and flowers. There are no sales of just outlots that I could find and when talking to developers they give them no value and simply deed them over to the buyer of the buildable lot connected to them. I did find sales of lots with outlots and compared them to the sales of just lots without outlots and found they sold for similar prices making the developers comment true. So I have support to say the outlot has no market value but it also made me think that its kind of like a conservation easement in that someone can use the land for recreation. I realized conservation easements are typically large tracts of land that can be hunted which mine cannot but the they have a value. I am looking for any thoughts or if any one has had a similar situation.
Sponsored Links

  #2  
Old 09-27-2011, 09:15 AM
JamesRockford JamesRockford is offline
 
Join Date: Oct 2010
Location: Paradise Cove, Malibu, CA
State: California
Professional Status: Certified General Appraiser
Posts: 714
Default

What is the purpose of the appraisal and if it's worth $0 why would anyone pay $500+ for an appraisal report?

Waste of money...
  #3  
Old 09-27-2011, 09:22 AM
Michael S Michael S is offline
 
Join Date: Mar 2009
Location: Albuquerque
State: New Mexico
Professional Status: Certified General Appraiser
Posts: 920
Default

Sounds like you've got it pretty much wrapped up. I'd think there might be some value to a certain buyer. But realistically unless you're looking to start a big garden I don't see much more value in that than if it was just green way or other open space in the neighborhood. The property taxes and maintenance probably balance out the minimal benefit of having some extra land.

Interviewing buyers of some of those homes with outlots might provide some more insight. If this is a typical ponding type area that's below grade and has standing water at times, I could easily see there being no value.
  #4  
Old 09-27-2011, 09:30 AM
justinschroeder's Avatar
justinschroeder justinschroeder is offline
 
Join Date: Sep 2007
State: Illinois
Professional Status: Certified General Appraiser
Posts: 86
Default

The city is the one who wants the appraisal so they can try to buy it from the owner for a road widening project.

The road is at the opposite end of the house and is buffered by a row of trees along a creek, so the new road will not affect the houses value.
  #5  
Old 09-27-2011, 09:32 AM
Michigan CG's Avatar
Michigan CG Michigan CG is offline
 
Join Date: Nov 2006
State: Michigan
Professional Status: Certified General Appraiser
Posts: 16,048
Default

Surplus land.
__________________
You do not know what you do not know.
  #6  
Old 09-27-2011, 09:57 AM
JamesRockford JamesRockford is offline
 
Join Date: Oct 2010
Location: Paradise Cove, Malibu, CA
State: California
Professional Status: Certified General Appraiser
Posts: 714
Default

Quote:
Originally Posted by justinschroeder View Post
The city is the one who wants the appraisal so they can try to buy it from the owner for a road widening project..
The city most likely has the power of eminent domain, so they can condemn it. They will have to pay "market value" for the taking though. Sounds like a $2,500 appraisal report for a $500 piece of land to me.
  #7  
Old 09-27-2011, 12:30 PM
CANative's Avatar
CANative CANative is online now
 
Join Date: Jun 2003
Location: Hopland, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 42,678
Default

It may have some public interest value. The government agency may pay more than market value to avoid potential transaction and litigation cost that would be required in condemnation. Did you client include the type of value they required?
__________________
"OMG! What's wrong with you?"
  #8  
Old 09-27-2011, 12:34 PM
justinschroeder's Avatar
justinschroeder justinschroeder is offline
 
Join Date: Sep 2007
State: Illinois
Professional Status: Certified General Appraiser
Posts: 86
Default

They asked for market value. I assume they will show it to the owner and say this is the market value we will give you this much more but I know you should never assume...oh wait we kind of do that all of the time.
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 11:53 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93