Fractional interest cemetery etc

[Digger88]

How do you figure out fractional interest? Someone hired me to value a subdividable 15 acre lot for someone who passed to sell to the remaining owner. It's zoned 1 lot per 10 acres so not so fast. Also, there is a cemetery on it which he also did not tell me about so I need to go see where that is. I'm assuming 1/2 the value needs a further discount since it's not as marketable as 1/2 of the whole and I've never done this before. What say you?

 

[ucbruin]

Damn, I miss those days you'd post assignments where you had 5 model match sales to the subject....
With closing dates within 3 months of your effective date....
WTF has happen to your business model....

 

[Digger88]

I wanted to get more private work like a dumbazz lol

 

[TerryRohrer]

How do you figure out fractional interest? Someone hired me to value a subdividable 15 acre lot for someone who passed to sell to the remaining owner. It's zoned 1 lot per 10 acres so not so fast. Also, there is a cemetery on it which he also did not tell me about so I need to go see where that is. I'm assuming 1/2 the value needs a further discount since it's not as marketable as 1/2 of the whole and I've never done this before. What say you?

I would find someone who has done these to participate, and make sure the fee is high. Some simply make up a discount, but to do it right you have to find data. And that data is hard to come by. Ideally, sales of an undivided interest to someone other than a current owner. And typically, the smaller the interest, the larger the discount, so transactions nearest to 50% undivided interest will be the best indicators.

 

[swandel1]

Have you looked in the vacation areas? We have some partial interest subdivisions in these type areas here in AZ. Even though the comps will not be competitive, you might at least be able to glom some discount ratios from these. I am thinking Williamsburg, Charlottesville, maybe the Beltway area, etc.

 

[Terrel L. Shields]

Never seen a cemetery impact value beyond its size (i.e 15 acres less one acre means 14 acres have value. In my state a cemetery is public property by law.)

 

[glenn walker]

Anyone ever try to sell a cemetary ?

 

[Digger88]

Never seen a cemetery impact value beyond its size (i.e 15 acres less one acre means 14 acres have value. In my state a cemetery is public property by law.)

I didn't see it and it could have been in the middle effecting setbacks etc but it's on the fringe so no biggie. But being the co-owner is their neighbor and the both abut the property the estate agreed to sell to the co owner at FMV (prior agreement between neighbors) so I don't think any discount applies actually. I'm going to go with that 1 buildable lot with excess land.

 

[Terrel L. Shields]

I would note the cemetery is there and protected by state law. Put the buyer on notice that they cannot destroy the gravesite legally.

In Virginia, private cemetery rights allow family members, descendants, and genealogical researchers reasonable access to graves on private property (VA. Code § 57-27.1). Property owners must allow access but can set reasonable restrictions on hours and methods. Private, small family burials are permitted, but they must comply with local zoning regulations and state setbacks from homes and water.​

Title 57. Religious and Charitable Matters; Cemeteries

law.lis.virginia.gov

 

[JTip]

The cemetery part scares me as a CR. If the assignment is not 1-4 family or land with a H&BU as 1-4 family, that would be an easy pass for me.

On to the next log cabin or manufactured home with an addition.