Can Residential Acreage Sold W/rezone Intent To Industrial/heavy Manufacture Be Used For I/hm Comp?

[PriceItRight]

Would a typical buyer see it as an alternative?

Yes.

 

[Gobears81]

Some items to help support your conclusions:

-Future land use map
-Development trends in this location
-History of municipality in approving re-zoning requests, particularly for industrial
-Zoning surrounding this site
-Characteristics of surrounding improvements - if it is residential, buffers would be a more significant consideration and it may be more likely to have opposition at a re-zoning meeting
-I would talk to a zoning official. Many times, they won't be willing to offer much insight, but I've had cases where they would openly admit that a site could be re-zoned

Good luck

 

[KHS445]

Does the buyer of the residential sites own any of the adjoining property? Do you have anyway of knowing the buyer or the buyer’s intent? Does anyone at the local municipality know anything about the buyer? Is it someone who is expanding, moving to the area, speculating, etc.?

As others have said, you need to understand the motivation of both the seller and the buyer.

 

[Greg Graybadger]

PriceItRight, your 4.85-acre subject property with Industrial/Heavy Manufacturing zoning should not be appraised using the sales of the lots across the street as comparables, in my opinion. I agree that the different zoning is probably not a significant issue, since the buyer appears confident that they can achieve rezoning. However, the fact that these were all purchased by a single buyer intending to assemble them indicates a motivation that would not apply to your subject. Re-read your definition of market value. You stated that the assemblage is 5 parcels from 2.6 to 5 acres, so the assembled size will be significantly larger than your subject. You also stated that the property next door to you subject is about 30 acres, and this makes me wonder if your subject may be less desirable in your market due to its size. (I'm not saying this is true, just that it's a question.) I believe an appraiser should discuss the assemblage project in their report and perhaps state that it implies higher values per acre in the neighborhood, but nothing more.

 

[PriceItRight]

Some items to help support your conclusions:

-Future land use map
-Development trends in this location
-History of municipality in approving re-zoning requests, particularly for industrial
-Zoning surrounding this site
-Characteristics of surrounding improvements - if it is residential, buffers would be a more significant consideration and it may be more likely to have opposition at a re-zoning meeting
-I would talk to a zoning official. Many times, they won't be willing to offer much insight, but I've had cases where they would openly admit that a site could be re-zoned

Good luck

Thank you! There is Industrial/heavy manufacturing surrounding this area. That's why I questioned why the appraiser didn't consider these purchases with intent to rezone to I/HM. I have since found that the buyer of the residential properties has, infact, submitted a rezoning application.

 

[PriceItRight]

PriceItRight, your 4.85-acre subject property with Industrial/Heavy Manufacturing zoning should not be appraised using the sales of the lots across the street as comparables, in my opinion. I agree that the different zoning is probably not a significant issue, since the buyer appears confident that they can achieve rezoning. However, the fact that these were all purchased by a single buyer intending to assemble them indicates a motivation that would not apply to your subject. Re-read your definition of market value. You stated that the assemblage is 5 parcels from 2.6 to 5 acres, so the assembled size will be significantly larger than your subject. You also stated that the property next door to you subject is about 30 acres, and this makes me wonder if your subject may be less desirable in your market due to its size. (I'm not saying this is true, just that it's a question.) I believe an appraiser should discuss the assemblage project in their report and perhaps state that it implies higher values per acre in the neighborhood, but nothing more.

Thank you! I agree that the smaller size makes it less desireable. But, I also agree with your statement that these purchases impy higher values per acre in the neighborhood. I have also found that the buyer has submitted a rezoning application to Industrial/Heavy Manufacturing, so the "intent" has sprouted legs.

 

[PriceItRight]

Does the buyer of the residential sites own any of the adjoining property? Do you have anyway of knowing the buyer or the buyer’s intent? Does anyone at the local municipality know anything about the buyer? Is it someone who is expanding, moving to the area, speculating, etc.?

As others have said, you need to understand the motivation of both the seller and the buyer.

Hi and thank you! The buyer bought up appx four 5 acre +/- residential parcels. Their intent was rumored to be to rezone to Industrial/Heavy Manufacturing. There is Industrial/heavy manufacturing surrounding this area. AND I have recently discovered that the buyer of the residential properties has, infact, submitted a rezoning application for Industrial/Heavy Manufacturing. That's why I am questioning why the appraiser didn't consider these residential purchases with buyer intent to rezone to I/HM. I understand that the combined residential parcels, once rezoned, will be a more desireable and valuable parcel, due to size. But, surely, this surrounding development does and should have added value to the 4.85 acre Industrial/Heavy Manufacturing parcel's appraisal, directly across the street. Do you agree? Thanks again!

 

[PriceItRight]

Hi and thank you! The buyer bought up appx four 5 acre +/- residential parcels. Their intent was rumored to be to rezone to Industrial/Heavy Manufacturing. There is Industrial/heavy manufacturing surrounding this area. AND I have recently discovered that the buyer of the residential properties has, infact, submitted a rezoning application for Industrial/Heavy Manufacturing. That's why I am questioning why the appraiser didn't consider these residential purchases with buyer intent to rezone to I/HM. I understand that the combined residential parcels, once rezoned, will be a more desireable and valuable parcel, due to size. But, surely, this surrounding development does and should have added value to the 4.85 acre Industrial/Heavy Manufacturing parcel's appraisal, directly across the street. Do you agree? Thanks again!