Land locked appraisal

[Alan Magill]

I re-read the original post and now realize I misread the scenario. I didn't realize there were three parcels involved.

SOrry for the confusion. The vacant parcel is separately platted, but part of the owners property with the house.

 

[CANative]

It seems like the others are treating this as though there are 3 property interests with House A, House B and Lot X. That's why they want to say there is a market, and thus a market value, for Lot X. Since House A already Owns Lot X there is only one possible buyer and that is House B.

Bi-lateral monopoly. What's it worth to House A to lose it, what's it worth to House B to get it? The value is somewhere in between.

Think of this more like a boundary line adjustment than the sale of a lot.

 

[hastalavista]

It seems like the others are treating this as though there are 3 property interests with House A, House B and Lot X. That's why they want to say there is a market, and thus a market value, for Lot X. Since House A already Owns Lot X there is only one possible buyer and that is House B.

Bi-lateral monopoly. What's it worth to House A to lose it, what's it worth to House B to get it? The value is somewhere in between.

Think of this more like a boundary line adjustment than the sale of a lot.

If only one person can buy it, and no one else, then it is a bilateral monopoly scenario.
If more than one person can buy it, it isn't.

So, in the
House---------Lot----------House
scenario, if the lot is owned by either of the houses (in my high-tech organizational chart), and it cannot be sold separately to some other third party (an investor who wants to hold it), then it is a bilateral monopoly scenario.


:new_smile-l: