Buyer thought he bought 3 acres, got 1 acre

[Jim Mable]

Hi, Have an appraisal assigment in Connecticut. Client bought home in 2003 that was listed for sale on MLS as a single family dwelling situated on 3 acres. Tax Assessor field card at that time stated it contained 3 acres with a notation 2 acres were added in 2001 (seller owned adjoining property also). The subject property is an interior lot with access via a 25' wide right of way shared with the sellers property which offers 8 acres with one dwelling unit. Seller who also owns surounding property filed a survey map at town hall which was approved and signed by the zoning officer that a 2 acre parcel was to be conveyed to subject property. Well, seller changed his mind and the deed at time of purchase filed in town hall shows only one (1) acre with the dwelling. This 2 acre parcel is land locked and surrounded by only 4 parcels (including subject property) Attorney asked for value at time of purchase with the home and 1 acre and home with 3 acres. The area surrounding the dwelling is comprised of single family homes on sites ranging from 1-10 acres. Minimum standards for development require 1 acre, but also say not more that 2 parcels can share a right of way so future development of another homesite on this 2 acre parcel is not possible unless the adjoing (current) owner decided to tear down his current home and rebuild on this site. I have determined value for the dwelling on 1 acre. It is located in a rural community, the reason the buyers bought the home was to assure privacy. Primary site values are in the $50-$175 range... Excess, surplus land value of the 2 acres would be very subjective. Recent comps all over the place from $50,000 for 15 acres allowing one building site, to $175,000 for a 1acre primary site. If I just added the 2 acres to the 1 acre for a total of the 3 acres they were anticipating, the value would change very little based on comps. Will be a contested court matter. Thinking of appraising the 2 acres alone and not including in the home. Right direction to go?

Any thoughts?

Regards, Jim

 

[xm72mhd]

From what you say, you may not have appraised the correct value from the buyer's standpoint in the beginning. What is the privacy value? And what the heck does it matter. If the seller contracred to sell 3 and only conveyed one that should be a slam dunk for the lawyer regardless of value.

 

[Jim Mable]

From what you say, you may not have appraised the correct value from the buyer's standpoint in the beginning. What is the privacy value? And what the heck does it matter. If the seller contracred to sell 3 and only conveyed one that should be a slam dunk for the lawyer regardless of value.

First time appraising this property as I was not involved at time of sale.. Agree it should be a slam dunk.. but have to determine the value of the 2 acres so we have something to work on.. I know.. its a pain.. Jim

 

[Terrel L. Shields]

Well, seller changed his mind and the deed at time of purchase filed in town hall shows only one (1) acre with the dwelling.

Sounds like a contract dispute. The buyer contracted to buy 3 ac., delivery was only 1 acre. The 'value' the lawyer surely wants is what loss does the 2 missing acres accrue to the buyer? What is the property worth house + 1 ac. and house + 3 ac. The difference is what counts.
I think I would clarify with the client what do they want. Do they want an appraisal as is and as should have been?

 

[Ms. Janet]

Seller who also owns surounding property filed a survey map at town hall which was approved and signed by the zoning officer that a 2 acre parcel was to be conveyed to subject property. Well, seller changed his mind and the deed at time of purchase filed in town hall shows only one (1) acre with the dwelling.

How could that happen without anyone noticing for 3 years?

 

[Hall McClenahan]

Jim is there any indication of appeal for wider lots vs deeper lots?

I had an assignment last year on lake property that had a wide disparity with no apparent reasoning and a CG here asked me what good the depth did.

After looking harder at layout vs size a measurable indicator was extractable for lake frontage (I know duh, just not something I had been considering). Could properties in your area be reflecting something like this for privacy from neighbors?

Is a square lot commanding more than a rectangular one?

 

[Jim Mable]

Sounds like a contract dispute. The buyer contracted to buy 3 ac., delivery was only 1 acre. The 'value' the lawyer surely wants is what loss does the 2 missing acres accrue to the buyer? What is the property worth house + 1 ac. and house + 3 ac. The difference is what counts.
I think I would clarify with the client what do they want. Do they want an appraisal as is and as should have been?

The listing Realtor & Seller actually walked the property with the buyer and buyers Realltor making refference to the Tax Assessors card and survey map showing 3 acres that was filed at town hall prior to purchase. Yes, the value the lawyer wants is the difference between 1 acre value and the 3 acre value with the house. As-is and as should have been.

But the difference would be minimal as homes in the area sold in similar price ranges if they were situated on one acre or 3 acres. The "privacy factor" and knowing no one is going to build behind you is the Buyers concern. It is an interior parcel with no access other than to abutting 4 properties which includes the subject property.

Thanks for your reply, Jim

 

[Jim Mable]

How could that happen without anyone noticing for 3 years?

When the buyer saw the neighbor placing survey stakes on the property that he thought he owned about 6 months ago.

Jim

 

[Jim Mable]

Jim is there any indication of appeal for wider lots vs deeper lots?

I had an assignment last year on lake property that had a wide disparity with no apparent reasoning and a CG here asked me what good the depth did.

After looking harder at layout vs size a measurable indicator was extractable for lake frontage (I know duh, just not something I had been considering). Could properties in your area be reflecting something like this for privacy from neighbors?

Is a square lot commanding more than a rectangular one?

Good point!. Have worked on many waterfront properties and the value is highly determined by the amount of frontage on the water. Something to consider as far as the "privacy factor" for this home as the land in question is heavilly wooded sloping upward to the rear, a very private setting.

Thanks for your input. Jim

 

[xm72mhd]

Sounds like you may have missed that on your first appraisal.