Hagar's Take on HBU and Highest Value in Working RE

[RCA]

Many buyers here do not disclose what they are planning. They buy the property and might simply add to their inventory of property, leasing for a time as is, then develop when they think the time is right and they have crew available.
My uncle's old place next to mine was bought by a developer. But he isn't developing it. He bought it last year and the farm next to it 4 years ago. He's got cattle on the place, cuts hay, and runs it like the cattle farm that it was for 100 years. So, was the appraiser supposed to speculate what the buyers timeline will be? What is the HBU? It is land in transition but how long will that transition be? 2 years? 10?


New 2025 Fall issue. Paper copy came yesterday to my mailbox.

I still can't find it online. Also, I didn't get it in the mail, and I am in the same state. Maybe they got word?

 

[Zoe]

I read it. It is in that Working RE magazine. It is good article. He didn't mention extraordinary assumptions and hypothetical conditions. He knows they would be needed.

Plus, in the hypothetical scenario he gave on multi family, how is the appraiser supposed to develop plans for the proposed multi family unit built to maximize the return to the site?

Do we have to hire an architect and get them to go through zoning on setbacks and maximum heights and how many units in a multistory? Then do we need cost to complete from the architect?

How long will it take to complete from demolition to final new construction? How long will take to reach market stablized occupancy?

What is maximum units that the market will support and the subject site. Can we go 100 stories high on a high rise? Can we get a parking garage on there too?