0 value. Am I right?

[sputnam]

I am assisting with a post flood valuation. The property is a small 20 home community of second home/vacation homes where every one who was there died. Most homes were completely washed away including the subject. I am aware of the Cost, Use, Risk effects on value, and the further I get down this rabbit hole, the more I think this property is worth $0. There are many factors that contribute to this. There are County restrictions requiring the structure to be raised 6 ft, the common elements (pool, common area, and park area) is a field of broken glass, and other requirements that necessitate a large expenditure. The amount of money needed to bring it to its former use is greater than its land value. A change in land use to an RV park is more suitable. The Risk factor is also significant as everyone who was there at the time died. There is a stigma. I am just interested in hearing opinions.

As strange as it may seem, people do buy and/or in areas that have flooded.

 

[JTip]

Can't do as-is due to the current condition, which should be cured by insurance cleanup or govt subsidized funding.

What will it look like in the after? Ready to market second home vacation parcels. "Completely washed" tells me its in a floodway, and death is a risk residing in a floodway, so the land will be less valuable than 'dry' land.

It still has value.

 

[Non Sequitur]

I agree. I know a guy who buys and holds "worthless" parcels. He usually buys them from large companies that have them on their books, city governments, etc. One great example, he bought a weird triangle shaped lot owned by a company where a mill used to be when they still made things in the US. It was next to a railroad that is no longer there, the roads have changed, the neighborhood has changed. Tax value was laughable. He held it for 25 years and now they are building townhouses all around it and guess, what, it's getting rezoned and he will make out like a bandit.

I know a guy who for decades has bought anything at tax sales that no one else wanted, usually (at the time) sites that can't be built on, landlocked, etc. The market always swings back to him, made millions. Wish I would have met and learned from him 20 years ago.

 

[Gobears81]

Zero value is essentially saying you can't give it away for free. This implies there is no market for the property. If there's no market for the property then the Market Value definition does not apply.

Zero value means you CAN give it away for free, just not for a positive consideration. It doesn't mean that there isn't a market, but that it has a value of $0.

I agree that there is an HBU consideration that could potentially result in a positive value as an alternative use, and the OP mentioned an RV park. What would the value be based on a site for an RV park after accounting for demolition of the common elements?

 

[Mark K]

Sounds to me like there is no value, currently. What's the effective date of valuation? Current? If so, its very possible that there's no buyers for it in its existing condition. It might have value in the future but assuming a future HBU as a RV park is highly speculative. I would not be afraid to opine a $0 value.

I've turned in 3 zero value appraisals in 35 years. Each time the reviewer was skeptical but in the end agreed after doing their own research. I basically told them to prove me wrong...they couldn't.

 

[Tom4value]

No one thought to ask how EVERYONE died?

 

[Terrel L. Shields]

I know a guy who for decades has bought anything at tax sales that no one else wanted, usually

Heck I have 3 lots in Colorado I inherited from a cousin and he paid maybe $39 in back taxes and paid it for 30 years. It ain't very valuable and it's not even in a flood zone nor wetlands. Anybody wanna buy it?