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Advice needed

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matt newton

Thread Starter
Freshman Member
Joined
Jan 24, 2007
Professional Status
Certified Residential Appraiser
State
Texas
I have received an order in Fort Worth and I am struggling with it. If any has any advice they could lend I would appreciate it.
The client owns 3 lots next to each other in an older subdivision south of TCU. The corner lot is vacant and the two interior lots each have 1200-1500 sf, 60-70 year old homes on them.
He is not concerned with what the current value is but rather what the value would be if he scraped the two houses, combined the lots and then change the frontage to the side street and subdivided into 4 lots and built 4 new 2 story 2500 square foot, zero lot line homes. He would like me to advise him how much they would be worth. I am not sure how the market will react to these but thats his idea.
To make it a slightly more complicated the utility company is trying to aquire 10-15 feet of the corner lot for a gas line they want to run down the street. This pipeline would run down the side of the corner lot (from front to back) or if the client turns them to face the side street the pipeline would run through the front yards of the 4 new homes.
I have some ideas and a general idea of how I should handle this but my confidence is not too high. I might be a little in over my head on this but would like to gain the competency to complete these and learn something new. If anyone would like to give me some advice that would be great or if you would like to mentor me on this project I would gladly compensate. I know it might be a bit confusing so let me know if you have any questions.
Thanks
Matt
 

Mark4230

Freshman Member
Joined
Feb 25, 2008
Professional Status
Certified General Appraiser
State
Texas
Matt, from what you described, if you complete this appraisal, it will be an appraisal based on a hypothetical condition. First, you have to consider if the subdivision into 4 zero lot line lots is legal under the current zoning. If it's legal, then continue with the assignment. If its not legal, then the job is over and you cannot proceed. Get adequate information from the owner to identify the relevant characteristics of the proposed improvement (make sure you review USPAP in regard to what you must have available for a proposed improvement). Then simply appraise each of the four units. If the value does not support the owners investment goals, then he has his answer and you have done your job. Make sure you do a good job describing the HC so that you are not misleading. This is a job assignment that can be done, but you must take extra care with client, intended use, intended user, and assignment conditions.

Good luck.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Mark, Matt gives good advice. Are we talking gas lines at the street? No big deal. Bluebonnet Hills? Westcliff? Westcliff probably has zoning issues with that scenario. You might also want to consider external factors if there are no other new construction homes in the neighborhood.
 

farmguy

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Joined
Jun 27, 2007
Professional Status
Banking/Mortgage Industry
State
Texas
Just a thought, could this guy be working this deal a little to make it appear the utility line take does more damage, hence greater compensation. If they take a little of a vacant corner a llittle damage - no damage to two houses. If they take 10 feet from his planned 4 lots they just screwed him out of an entire lot possibly and he can make claim they should compensate. Whether or not he ever intended on doing the four lots or not, he can squawk that they are killing him.
 

matt newton

Thread Starter
Freshman Member
Joined
Jan 24, 2007
Professional Status
Certified Residential Appraiser
State
Texas
I think you are right on with your scenario farmguy.
You might have seen the story on the news if you live in FW or Dallas. The energy company is trying to aquire this 10 foot by 120 foot piece of land through condemnation and he is fighting it.
What is the most accurate way to determine whether or not changing the frontage and subdividing into 4 lots is legally permissible?
There are no properties in this are that will compare to what he is proposing. They will definately be atypical for the area.
Thanks all of you for the advice. You've given me a map to follow and some good things to consider.
 

Mark4230

Freshman Member
Joined
Feb 25, 2008
Professional Status
Certified General Appraiser
State
Texas
What is the most accurate way to determine whether or not changing the frontage and subdividing into 4 lots is legally permissible?

You should be able to check with the Planning and Zoning Office at the city in which you are located. Given them the subdivision lot and block and they should be able to tell you if you can replat and if so what are the stipulations.
 
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