HBU Question

[PushinValue]

You should find out if the parcels are actually nonconforming. They may have been created prior to the current lot size requirement and if so are most likely "grandfathered". Confirmation should be obtained from the planning department.

My thoughts exactly!

Every city and county does it differently in my market. One county states "if the lot is recorded on the map we consider it Legal (not grandfathered use)". Crazyness if you ask me

 

[Meandering]

View attachment 30878
With both of these lots the property is still non conforming due to size. assuming the town would not allow for a variance, the HBU is current use correct?

Lets say though that the bigger lot was legal conforming on its own? that second lot in the box (lower lot) has value if the abutting neighbor wanted it. We don.t know if the neighbor would be really interested but would highest and best use be to sell the second lot to neighbor as the home could stand without it? I rarely come across these so I thought Id ask you folks. Im just not even sure what a property would be worth to a neighbor since he is the exclusive market to that lot.

Some thing else to consider.

Assemblage may be the highest and best of both lots.

Also, is there an issue with the smaller lot, like a utility easement, or a wetland or some other thing that you were not thinking about?

There is a reason the original subdivider made one lot much smaller than the others, usually, it is to isolate something that had to be utilized differently, like; as a retention pond, or a sewage/water/gas/underground wiring easement.

So first try to figure out why there is this one much smaller lot, that should lead you to the possible utility of the lot to decide if even in a limited market, or under grandfathering, it could be built upon, or just used to extend a yard.

I would also question if that smaller lot had some kind of ingress/egress easement for the 3.35 acres behind it.

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[Michigan CG]

** Below Is a short resume of my experience in H & B use analysis and I hope you approve !

You could be the second coming of Jesus, you are still wrong. Mortgages have nothing to do with Highest and Best Use.

 

[Valueseeker]

I'm greatful for all the discourse involved in these.

Marion. The larger lot is legal non conforming
Lot requirements are 150ft of frontage with 40,000sf. There is an overhead utility easement "to be installed" this is dated in 2011 and I didn't see any overhead lines. This was also just a 2055. The easement references to installing a new pole (from pole 19 to p-19-02). Electric company would have details I guess.

 

[Meandering]

I'm greatful for all the discourse involved in these.

Marion. The larger lot is legal non conforming
Lot requirements are 150ft of frontage with 40,000sf. There is an overhead utility easement "to be installed" this is dated in 2011 and I didn't see any overhead lines. This was also just a 2055. The easement references to installing a new pole (from pole 19 to p-19-02). Electric company would have details I guess.

Ah so, being a 2055 form, has nothing to do with being an appraisal report, which is governed by USPAP, not by form numbers. So, were underground utilities installed in this easement? That would definitely impact your H&B use analysis.

Pole numbers can be found on metal plates screwed to the poles.

See? you never knew appraising was this much fun.


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[Valueseeker]

No what I'm saying is I drove by and I didn't notice any poles around. The easement specifically mentions overhead utility

 

[techbiker]

No what I'm saying is I drove by and I didn't notice any poles around. The easement specifically mentions overhead utility

If the easement was granted, it doesn't matter if the poles have been installed or not. The easement still exists and burdens the property even if the telephone poles are installed in 50 years.

 

[Meandering]

No what I'm saying is I drove by and I didn't notice any poles around. The easement specifically mentions overhead utility

So if I understand all of this correctly,

The smaller lot has an easement for the utility company, depending upon your state laws and other company agreements,, some utilities may share easements, such as sewer and water lines, telephone, cable TV and electric, yada yada.

The smaller lot, then, has very limited utility for use with this easement, and might only be available as an extension of a yard, which would suggest, at least to me, that assemblage to a contiguous parcel might be the highest and best, thereby reducing the RE tax burden of being a stand alone tax parcel, as opposed to being just a piece of a larger parcel.

However, once assembled to another parcel, will those easements negatively impact the value of the larger parcel?

Sometimes they do, sometimes they don't. It just depends on your market.

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[jay trotta]

IMO, the lots more than likely were subdivided before zoning or zoning changes; a review of the Deed & Restrictions is where you will find rights of easements, they can date way back to the original developer. Once you know the basic information, you can move forward; the reason you have a 2055 is because someone else already knows the end result and they are testing your ability & knowledge. Do Not skip anything, Dig Deep.

You have already Underpriced this job.......Good Luck

 

[Valueseeker]

You have already Underpriced this job.......Good Luck

Indeed. Quoted a price that is over my typical 1004 but still and still got it. Regret still.