Concerning a condition of approval for a subdivision

[Terry L. Hart]

I have been tasked with reviewing an appraisal wherein the appraiser has based his opinion of value on the subject having a highest and best use as RSF 4. Single Family residential., 4 units per acre. My research of the subdivision reveals a portion of the subdivision land is dedicated solely for use of extending an existing road through the sub to connect to another road bordering the sub. My question is "does the approval condition affect the HBU?" And if so what are the thoughts on the value"

 

[J Grant]

I have been tasked with reviewing an appraisal wherein the appraiser has based his opinion of value on the subject having a highest and best use as RSF 4. Single Family residential., 4 units per acre. My research of the subdivision reveals a portion of the subdivision land is dedicated solely for use of extending an existing road through the sub to connect to another road bordering the sub. My question is "does the approval condition affect the HBU?" And if so what are the thoughts on the value"

Are you reviewing the appraisal of an individual house or doing a subdivision appraisal review?

I fail to see how extending an existing road affects a residential HBU. It might affect value, whether that is negative or positive or a wash - idk - depends - it might negatively affect the value of the houses right around the exender road if there is more traffic - how wide a road is, and will it cut off yard or green space? The extension could also make the community have better access to stores, services . Only you can find that out as the local market expert

 

[Terrel L. Shields]

It only seems to be impacting the location of the roads for such future subdivision.

 

[Terry L. Hart]

Are you reviewing the appraisal of an individual house or doing a subdivision appraisal review?

I fail to see how extending an existing road affects a residential HBU. It might affect value, whether that is negative or positive or a wash - idk - depends - it might negatively affect the value of the houses right around the exender road if there is more traffic - how wide a road is, and will it cut off yard or green space? The extension could also make the community have better access to stores, services . Only you can find that out as the local market expert

The review is of a report where the appraiser basis his value on the dedicated right of way having an HBU of RSF4. My dilemma is that the subject land (right of way) was dedicated to being roadway and could never be used for any other use.

 

[J Grant]

Is the appraisal you are receiving of the house and the land together?

Or is the appraisal just for the strip of land that has become ROW for the road?

 

[Tom D]

Isn't highest and best use also based on legally permissible. They have to get a permit from the locals to build whatever. Is this a hypothetical value, or do they already have permits per plans submitted. However, i also don't quite understand post.

 

[George Hatch]

"portion dedicated for use as a street" amounts to a legal encumbrance, right? If so, it means the owner or developer has to work around it.
You didn't mention the size of the lot. If it's so small that the remainder after the street isn't big enough to develop then that's a problem. If it's big enough to yield 6 or 10 or 20 lots the project would probably need to front that street and possibly a couple of additional interior streets.

Trying to figure out how to configure a splittable lot in a design which hits all the design criteria can get tricky. The shape or access can limit how many lots with a particular minimum width or depth can yield, especially when the local jursidiction is requiring turn-arounds for fire apparatus or greenbelt set asides in addition to the public R-O-W. Just because a parcel is (let's say) 2ac doesn't necessarily mean the shape after the public street R-O-W will yield 5 or 6 units.

 

[Mark K]

The review is of a report where the appraiser basis his value on the dedicated right of way having an HBU of RSF4. My dilemma is that the subject land (right of way) was dedicated to being roadway and could never be used for any other use.

Most of the time I see residential development land valued on a per acre basis knowing full well that part of the land will be roads, green space, trails, etc. As long as the dedicated r/w is used in the development process, I don't see a problem. OTOH if the dedicated r/w is not usable in the development and will encumber land otherwise used for building, I can see appraising only the net acreage, i.e., total land minus area encumbered.

 

[Terry L. Hart]

Is the appraisal you are receiving of the house and the land together?

Or is the appraisal just for the strip of land that has become ROW for the road?

vacant land dedicated for road expansion as an agreement with County for subdivision development approval.