Incorrect Zoning on appraisal

[Thomas Fiehler]

Some good suggestions plus you could always petition to get the zoning changed.

 

[AnonApprsr]

It may have no affect on value, in which case I wouldn't worry about it. Hire an appraiser to find out if zoning on your property would affect value. It's basically a Highest and Best Use Analysis. I would quote about $300+-, depending on data access and area/market, for the job. Is it worth it to you?

 

[Mike Kennedy]

My husband and I recently received an offer for our house that has been off the market for a few months. It was a really good offer. Actually it has been the only one that would allow us to both pay off our mortgage and walk away with a little money in our pocket. Our house is very small - small enough that all of the offers we received, including this most recent one, have been from developers who want to knock down our house and build a new one in it's place. So the buyer came over, we signed all the papers, he dropped them off at the title company and headed to the city offices to file his permits. While he was there he found out that our property is zoned "Neighborhood Business" and he cannot build a new single-family home on it. I called the city myself, discussed our options, and at the end of the conversation was left with the same answer. We pulled our appraisal from our purchase and found that our appraisal is marked -

"Specific Zoning Classification: Residential"

"Zoning Description: Single-family dwelling"

"Zoning Compliance" - The "legal" box is checked, not the "legal non-conforming" as it should be

Do we have any sort of recourse against the title company for not completing this properly? We plan on taking our case to the Zoning Board, but there is no guarantee that they will re-zone our property. Any advice or suggestions are greatly appreciated!

Consult a local experienced Real Estate Litigation Attorney. Any responses from parties other than that are mere speculation.

 

[Melody26]

What exactly is "Neighborhood Business?" In my area towns "Residential-Office" allows a house but you can run a small biz out of it....

That it is exactly what it is. :icon_lol:

 

[Melody26]

It may have no affect on value, in which case I wouldn't worry about it. Hire an appraiser to find out if zoning on your property would affect value. It's basically a Highest and Best Use Analysis. I would quote about $300+-, depending on data access and area/market, for the job. Is it worth it to you?

We don't think changing the zoning will have any effect on the value. However all of our offers have been from residential developers. With it zoned the way it is, they either planned on getting it changed or were unaware themselves.

It is worth it to us to have it changed as that seems to be the only way we will be able to sell the house at this point. 672 square feet is tight with 2 adults, a pre-schooler and a dog. And there is no way to expand our family (which we want to do) unless we can get sell the house and move.

 

[DonRico]

Melody --

From the way you're describing the boundary between the NB Zone and the Residential Zone.....it sounds like the line does a zig-zag around your Parcel.

" We are the 3rd house on our block of 5. The 2 properties south of us are also zoned Neighborhood Business, but the 2 properties north of us (as well as all 3 houses across the street - 1 direct, 1 both north and south) are all Residential. "

If that is correct, you may have a relatively easy time getting the Zoning board to "move the boundary" I think in the name of Civic Progress (and increased Tax Ratables) they would want the Parcel to be improved. You should ask the Zoning Officer those kinds of questions on Monday Morning. That would determine your course of action.

In my opinion, the developer should have performed a little more Due Diligence before making an offer. Especially on a property that appears to be right on the cusp of Permitted Use.

I don't think it's worth pursuing any litigation against the Realtors or the Appraiser. If you're going to engage a Real Estate Attorney, it should be one that is fluent in getting the Zoning Board to change.

 

[TxArmadillo]

What exactly is "Neighborhood Business?" In my area towns "Residential-Office" allows a house but you can run a small biz out of it....

Good call, Terrel, and my question as well.

This could easily be a situation where the definition includes allowing the land for a SFH, a small commercial enterprises of, say, less than $50K gross annual income, or even permit some other type of home-based business (think, modification of previous deed restrictions, etc.).

 

[Elliott]

Does the zoning allow remodeling of an existing use. I have seen all but one wall of a house (and a small portion to boot) that went from a old house to a brand new house.

I really doubt litigating will accomplish much.

 

[hglenbetts]

We don't think changing the zoning will have any effect on the value. However all of our offers have been from residential developers. With it zoned the way it is, they either planned on getting it changed or were unaware themselves.

It is worth it to us to have it changed as that seems to be the only way we will be able to sell the house at this point. 672 square feet is tight with 2 adults, a pre-schooler and a dog. And there is no way to expand our family (which we want to do) unless we can get sell the house and move.

Hello Melody. In most metro communities, the zoning wouldn't be "changed" as they like to stay away from spot zoning. One course would be to request a variance to the current zoning.

BUT.. reading your description of the neighborhood, it sounds like the use drove the zoning, probably many years ago. Talk to your zoning administrator again, and make sure they are aware of the "zig-zag" boundaries. Then push the question of change vs variance.

One other factor.. does your municipality have a "Master Plan"? Towns will change zoning toward the master plan not away from it.

Good Luck.

 

[Melody26]

There are too many posts to answer each one individually - so I'm going to sum them all with one...

The zoning doesn't zig-zag per se, it just follows my property along the north side. The yard that backs up to mine is also Neighborhood Business and is the last house on his street as the street behind me is a court. So the zoning essentially encompasses a "block" for lack of better description.

We don't want to go down the path of litigation unless it's ABSOLUTELY necessary, we are not the sueing type.

I've gotten a hold of the Master Plan for our city which was originally written in 1999 and has been amended twice. In all of the Future Use maps our property (as well as the lots south of us and behind us) is zoned Residential.

As for improving the property, I discussed it briefly when I called last week. I was told that we still have to go in front of the Zoning board as we will have to ask for a zoning variance as our house is currently a "legal non-conforming" structure. A developer "could" potentially do that however they wouldn't be using the property to it's maximum potential. Our property is 40 x 150, which is one of the larger lot's in our neighborhood. Our house is set so far back currently that we can see that back walls of our neighbor's homes from our front porch. Without having to sacrifice a yard (which many, many homes in our area are lacking) all of the developers want to move the house forward so the new house can have both a garage and a yard.