Excess vs Surpluss Land

[2020]

How do you determine excess vs surpluss in a rural area? The subject has two parcels both on the same deed with dwelling They total .55 acres. Typical lot size in the area is .50 acres. Surpluss?

 

[glenn walker]

How do you determine excess vs surpluss in a rural area? The subject has two parcels both on the same deed with dwelling They total .55 acres. Typical lot size in the area is .50 acres. Surpluss?

Don't over think it you will get a headache-but in general you complete a Highest and Best Use Analysis-to determine if the additional land is needed to support the existing improvements or can it be sold and or developed separately. Usually I deal with Surplus land .

Excess Land:
Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land may have the potential to be sold separately and is valued separately.

Surplus Land:
Land that is not currently needed to support the existing improvement but cannot be separated from the property and sold off. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel.

 

[Deleted member 152047]

Sounds like surplus, do you have an aerial with the parcel lines to share? We can weigh in easily upon inspection.

 

[Terrel L. Shields]

.05 ACRES??? Com'n. Nonsensical. It's a small lot...especially for "rural". It is neither surplus nor excess.

 

[Dublin ohio]

What does zoning (if there is any) say about minimum site size. Most rural areas in my area do not have public sewer. Is there a septic system. If so. Where is leach field?

 

[glenn walker]

.05 ACRES??? Com'n. Nonsensical. It's a small lot...especially for "rural". It is neither surplus nor excess.

Agree Terrill - I think maybe he menas he has 50 & 55 acres if not he doesnt have surplus or excess land just a bigger lot size to park a motor home on : )

 

[Overimprovement]

.05 ACRES??? Com'n. Nonsensical. It's a small lot...especially for "rural". It is neither surplus nor excess.

OP is not saying additional lot is .05, only that the typical lot is .50, and the total of the two together is .55.

You may have improvements already on part of the 2nd lot, or setback issues (more rare with rural).
Here is what I always ask--even IF the 2nd parcel could be sold separately, is there ANY demand at all for a vacant lot there? Especially one that sounds like its half the normal lot size.

Need more info really.

 

[Overimprovement]

What underwriters look at (just as an aside) is whether the parcels are deeded together and have sold together in the past. If they haven't it gets tougher to call one surplus. Once you go down the excess road, then they want sold comps with a similar setup, which for a rural prop can be hard to find for sure.

 

[Terrel L. Shields]

maybe he menas he has 50 & 55 acres

wouldn't matter even then. What area has "lots" so uniform that there isn't far more than a 10% variance in size?

 

[Terrel L. Shields]

only that the typical lot is .50, and the total of the two together is .55.

So? That's why it is 2 lots. Plottage.