• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Excess Land

Status
Not open for further replies.

bdiewald

Sophomore Member
Joined
Oct 16, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
I have a classic case of excess land where the property owner purchased two building sites in a well desired subdivision and combined the parcels. The construction improvement only encumbers one parcel leaving a vacant parcel that is still able to be built on. After conversation with the Realtor and county mapping, the highest and best use of the property is as two separate parcels; however, this is a purchase and my client is asking for one reported value. I advised my client that I would provide them with two appraisals based on a hypothetical, but they are not having it. Any suggestions?
 

bdiewald

Sophomore Member
Joined
Oct 16, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
Can I report it "as is" and make the necessary market derived site adjustment for the additional site even though it is not currently extracted?
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
You state the 2 original parcels have been combined. Is there 1 or 2 parcel numbers. If only 1 legal parcel. Can it be legally sub divided. Not sure how it is in IL. But in some areas around here. If you combine 2 parcels. They cannot be subdivided at later date. If county says it can be subdivided. I see no reason why you could not make an adjustment for the excess land as a separate building site with the proper explanation. I would be sure I had thorough HBU analysis for excess land. Make sure you check required side yard requirements if any for existing structure to make sure dividing parcels does not impact side yard requirements for existing structure. Also, do not forget to consider any expenses involved with sub dividing. Such as survey cost and any cost imposed by local jurisdictions
 
Last edited:

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Since they don't understand basic appraisal practice give them the report As-Is and check the NO box for Highest and Best Use. I am sure that will make them real happy. <insert sarcasm here>
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
Since they don't understand basic appraisal practice give them the report As-Is and check the NO box for Highest and Best Use. I am sure that will make them real happy. <insert sarcasm here>

It would probably set their hair on fire.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
I have a classic case of excess land where the property owner purchased two building sites in a well desired subdivision and combined the parcels. The construction improvement only encumbers one parcel leaving a vacant parcel that is still able to be built on. After conversation with the Realtor and county mapping, the highest and best use of the property is as two separate parcels; however, this is a purchase and my client is asking for one reported value. I advised my client that I would provide them with two appraisals based on a hypothetical, but they are not having it. Any suggestions?

How did he accomplish losing the approved "sub division" approved lot ??
If both lots are on the Deed, are they noted as; Lot 1 as described and Lot 2 as described ??
What prevents the separation within the Deed ??

Don't know your area or PZC Dept., but in my area, once a "sub-division" is approved it has a seven year life if Nothing is built on it and if re-applied, all drafts need to be re-submitted.
Cheers
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Just because the lot can be subdivided does not mean that it must be subdivided as a condition of transfer. The property, as described, is a improved parcel of land that can be subdivided, and can be valued as such. It is possible there may be an issue with certain lenders, notably is they do not lend on vacant land.
 

bdiewald

Sophomore Member
Joined
Oct 16, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
You state the 2 original parcels have been combined. Is there 1 or 2 parcel numbers. If only 1 legal parcel. Can it be legally sub divided. Not sure how it is in IL. But in some areas around here. If you combine 2 parcels. They cannot be subdivided at later date. If county says it can be subdivided. I see no reason why you could not make an adjustment for the excess land as a separate building site with the proper explanation. I would be sure I had thorough HBU analysis for excess land. Make sure you check required side yard requirements if any for existing structure to make sure dividing parcels does not impact side yard requirements for existing structure. Also, do not forget to consider any expenses involved with sub dividing. Such as survey cost and any cost imposed by local jurisdictions


There is one parcel describing the two lots. According to the Realtor it can be legally subdivided but I am awaiting confirmation from the county. If the county confirms, it is most definitely at its highest and best use as two separate parcels. If this is the case, is there any way to perform and "as is" appraisal.
 

bdiewald

Sophomore Member
Joined
Oct 16, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
How did he accomplish losing the approved "sub division" approved lot ??
If both lots are on the Deed, are they noted as; Lot 1 as described and Lot 2 as described ??
What prevents the separation within the Deed ??

Don't know your area or PZC Dept., but in my area, once a "sub-division" is approved it has a seven year life if Nothing is built on it and if re-applied, all drafts need to be re-submitted.
Cheers

Not a very smart move, but he combined the parcels into one. It is now described as "LOT 288 & 289...." I am awaiting confirmation from the county that the property can be re-subdivided.
 

bdiewald

Sophomore Member
Joined
Oct 16, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
GIS.pdf
Thank you all for the replies! I tried uploading the parcel map but my file size is too big. :mad2:
 
Last edited:
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks