Excess or surplus land?

[Terrel L. Shields]

Neither lot meets current minimum site size zoning ordinances but are grandfathered in and can be rebuilt if it burns down. Both lots combined would meet zoning.

Then it's one property.

 

[Trihard]

Then it's one property.

I am wondering why the lots are split though. And FHA not wanting the second lot included in the valuation is also adding to the headache.

 

[J Grant]

I am wondering why the lots are split though. And FHA not wanting the second lot included in the valuation is also adding to the headache.

It is often ween that there are two lots owned or one deed to make a combined meets min zoning site. And it is NOT EXCESS land now that neither lot meets the minium zoning to build a house on . It is one surplus big lot comprised of two parcels. Explain why in the report. Do you understand why?

 

[Terrel L. Shields]

You include the unitary holding. The lots probably predate zoning. You do not exclude one lot. It needs 2 lots to comply with zoning.

 

[J Grant]

Make it "subject to" the two parcels being combined since their barn is on it. Then it is a "marketable entity". So it is surplus land.

There is no subject to need. It is two lots that combined in one deed ( very common) and the total it has some surplus land but the combo of the two lots is needed to meet min zoning. It is already in place.. n

 

[Trihard]

It is often ween that there are two lots owned or one deed to make a combined meets min zoning site. And it is NOT EXCESS land now that neither lot meets the minium zoning to build a house on . It is one surplus big lot comprised of two parcels. Explain why in the report. Do you understand why?

Yes, the two lots combined are HBU.

 

[Trihard]

There is no subject to need. It is two lots that combined in one deed ( very common) and the total it has some surplus land but the combo of the two lots is needed to meet min zoning. It is already in place.. n

So basically, combine the size of both sites and adjust to comps?

 

[J Grant]

So basically, combine the size of both sites and adjust to comps?

Both sites are already there in one deed to comprise one parcel that t that meets minimum zoning - the two lots created a larger than typical parcel of land which is surplus land because either lot alone is too small to build on per zoning according to what you posted. We always adjust the comps ot the subject in the sales comparison approach, including lot sizes, if the market shows an adjustment.

 

[Tim Hicks (Texas)]

So basically, combine the size of both sites and adjust to comps?

Bingo!

 

[Trihard]

I spoke to FHA about the adjoining lot. They stated that the second lot cannot be considered excess land because it has a pole barn on it. They stated that excess land is only excess if it is vacant.