NC Values
Sophomore Member
- Joined
- Feb 21, 2003
- Professional Status
- Certified Residential Appraiser
- State
- North Carolina
I am currently enrolled in a R2 real estate appraisal class and our instructor asked us how to value a residential lot zoned R20 that does not perk and sewer is currently not available. The lot is in an established neighborhood near a major thorough-fare and septic line, but there are no immediate plans by the county to extend sewer into this neighborhood. Lot is .48 acre and equivalent lots with sewer or perk site are valued at approx $26K. Tax value for the lot is $2500.
The only approach I can think of is to make a WAG (wild *** guess) as to probability and timeframe when sewer might me extended and then calculate the present value based on these assumptions. (Please be aware we have not yet covered present/future value in our coursework).
How do you establish value for a lot that is currently not a buildable site. Also, how do you determine the value for a lot that has little or no chance of becoming a buildable site? It still has some value, perhaps to adjoining property owners, but this is a obviously a limited market.
This is my first posting, thanks for your help. :?:
The only approach I can think of is to make a WAG (wild *** guess) as to probability and timeframe when sewer might me extended and then calculate the present value based on these assumptions. (Please be aware we have not yet covered present/future value in our coursework).
How do you establish value for a lot that is currently not a buildable site. Also, how do you determine the value for a lot that has little or no chance of becoming a buildable site? It still has some value, perhaps to adjoining property owners, but this is a obviously a limited market.
This is my first posting, thanks for your help. :?: