Excess or surplus land?

[J Grant]

We don;t get to make stuff up in appraising and saying it is my signature or your signature does not change that,

Excess land is created by zoning, meaning a lot that is per local zoning the minimum size large enough to support building a house or structure on it, and thus able to be sold off and divided for that purpose.

I am aware there are areas with no zoning or weird exceptions but I am going by the definition of it for typical appraisal and valuation use.

 

[alebrewer]

Information provided by me is provided for the purpose of disputing those who think they cannot be wrong. It's up to individuals to decide for themselves what is right and what is not. J's signature only goes on J's appraisals (hopefully).

 

[Dublin ohio]

We don;t get to make stuff up in appraising and saying it is my signature or your signature does not change that,

Excess land is created by zoning, meaning a lot that is per local zoning the minimum size large enough to support building a house or structure on it, and thus able to be sold off and divided for that purpose.

I am aware there are areas with no zoning or weird exceptions but I am going by the definition of it for typical appraisal and valuation use.

Although a site might meet the "technical" definition of excess land. The HBU analysis would the determine the best use for the excess land. If nobody is selling or buying the excess land and properties with the excess land are typically sold as one. You have excess land by definition but it is being used as surplus in the market.

 

[Mark K]

- the market decides what is excess land, not zoning requirements.

There is an accepted definition of excess land; the market does not get to make this decision.

How the market chooses to use the excess land is their choice. If they choose to use it as a privacy buffer that's fine. However, using an excess parcel as if it was surplus by the owner does not change the excess to surplus.

If its needed to support the improvements, that's another story. If the well or septic system is located on a second parcel then it is not excess, it doesn't meet the definition; its needed to support the dwelling.

 

[alebrewer]

There is an accepted definition of excess land; the market does not get to make this decision.

How the market chooses to use the excess land is their choice. If they choose to use it as a privacy buffer that's fine. However, using an excess parcel as if it was surplus by the owner does not change the excess to surplus.

If its needed to support the improvements, that's another story. If the well or septic system is located on a second parcel then it is not excess, it doesn't meet the definition; its needed to support the dwelling.

Would you agree that, in order to be excess land, it has to have a separate highest and best use from the lot that has the improvement? Who determines that? The planning authority or the market? For me - whether you and J agree with me or not - the market determines that. So..... even if there are two parcels, if the market determines that the highest and best use of BOTH parcels is to support the existing improvement - then it is not excess land. Makes no difference if it can be sold off or not.

That said - market preferences change over time, so that - while the 'current' market preference may be that the highest and best use is for both lots to support the existing improvement, at some point - say when lot prices rise to the point that homeowners find it financially prudent to sell off the 2nd lot - the market may determine only one lot is necessary to support the improvement.

Again - you do you, boo.

 

[glenn walker]

Another super easy appraisal on a POS just over 1 acre lot -and you guys have turned it into appraising the Empire State Building. Fannie-Freddie-FHA all allow under assignment conditions for the two lots to be combined as one for valuation purposes. In this case the OP Stated that both parcels are already on the one deed and that a home and a pole bar encumber said property. JUST DO IT LMAO

 

[alebrewer]

Another super easy appraisal on a POS just over 1 acre lot -and you guys have turned it into appraising the Empire State Building. Fannie-Freddie-FHA all allow under assignment conditions for the two lots to be combined as one for valuation purposes. In this case the OP Stated that both parcels are already on the one deed and that a home and a pole bar encumber said property. JUST DO IT LMAO

there are WAY too many appraisal police on the forum...

 

[glenn walker]

there are WAY too many appraisal police on the forum...

Imagine working at a lender and you wake up to this everyday - I mean this is a easy easy assignment that has been turned into a nightmare where people just want to prove they are right.

 

[alebrewer]

Imagine working at a lender and you wake up to this everyday - I mean this is a easy easy assignment that has been turned into a nightmare where people just want to prove they are right.

Agreed. If you believe a 2nd lot is excess land JUST because it's a 2nd lot - treat it that way. If you don't - don't. You're the one who has to answer to your board if, and when, you're required to do so. Just make sure you have a solid basis for why you decided to do what you did. I never cease to be amazed by the folks who think they have to determine what is right or wrong for other appraisers. I take full responsiblity for appraisals that I sign. I take ZERO responsibility for appraisals that anyone else signs. They (theoretically) have the experience and eduction required to perform the services - let them perform them.

 

[glenn walker]

Now all we have to do is get back to where it always ends up " Price V Value"