J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
Interim Use: The temporary use to which a site or improved property is put until it is ready to be put to its future highest and best use.
Back to the OP specific scenario , I wonder if present HBU of vacant lot is not build now, but interim use ( hold for future HBU ) I read in expanded definition temporary estimate of of 5-7 years ( though temporary could be elastic )
We don't know history of this vacant site, but if it was on the market for 2 years at 80k with no buyers, and as part of the package sale the subject buyer paid 60k or 70k, perhaps that is what the lot is worth since it has greater marketability combined with house next door to be financed as part of the price and held vs as is vacant ready for development now. If it's been on the market a long time, and other vacant similar sites are sitting on the market, then it might not be financially feasible to develop it at this time.
The OP did not provide details so we don't know. I do know in my market vacant sites particularly in avg type subdivisions can be listed for several years with no buyers. While large tracts of vacant land that can be subdivided for a development are attractive to builders, one stray small lot is not. They are only attractive to a spec home builder, and in my market at least they mostly buy in very high $ areas or near beach, where they can charge a lot for a house and demand is very high. They don't seem interested in mid price areas as that is where I see stray lots vacant listed, and even in high $ areas a vacant lot can be on market a long time if not priced right. or if market even slightly cools for spec homes.
If the HBU for the vacant lot is interim use, then as part of the combination of vacant lot adjacent to the house, there is no conflict of interest with overall HBU of "as improved", in appraising for MV the house and lot as a combined property. or e building
Back to the OP specific scenario , I wonder if present HBU of vacant lot is not build now, but interim use ( hold for future HBU ) I read in expanded definition temporary estimate of of 5-7 years ( though temporary could be elastic )
We don't know history of this vacant site, but if it was on the market for 2 years at 80k with no buyers, and as part of the package sale the subject buyer paid 60k or 70k, perhaps that is what the lot is worth since it has greater marketability combined with house next door to be financed as part of the price and held vs as is vacant ready for development now. If it's been on the market a long time, and other vacant similar sites are sitting on the market, then it might not be financially feasible to develop it at this time.
The OP did not provide details so we don't know. I do know in my market vacant sites particularly in avg type subdivisions can be listed for several years with no buyers. While large tracts of vacant land that can be subdivided for a development are attractive to builders, one stray small lot is not. They are only attractive to a spec home builder, and in my market at least they mostly buy in very high $ areas or near beach, where they can charge a lot for a house and demand is very high. They don't seem interested in mid price areas as that is where I see stray lots vacant listed, and even in high $ areas a vacant lot can be on market a long time if not priced right. or if market even slightly cools for spec homes.
If the HBU for the vacant lot is interim use, then as part of the combination of vacant lot adjacent to the house, there is no conflict of interest with overall HBU of "as improved", in appraising for MV the house and lot as a combined property. or e building