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Non-Conforming (too small) Vacant Parcel

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ZZGAMAZZ

Thread Starter
Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
SOW: Marriage dissolution matter, market value, current effective date, summary narrative report.

Subject: Vacant commercial lot of 7000 sqft zoned Commercial General w/minimum lot size 20,000 sqft.

Caveat: My license is residential and I'm working on a project with the appraisal litigation specialist in my company, with my due diligence to include input from the AF. [This is termed a "PropEc Disclaimer."]

Status: I've researched the local market for vacant commercial parcels, reviewed the city General Plan and Developmental standards, and am awaiting a conversation with Planning for its professional advice about the variance process. There has been a bit of market activity for same-sized non-conforming commercial parcels and I will also speak to the market participants asap.

Statement: Subject appears to be legal non-conforming. HBU analysis (legally and physically as well because of the set-back, parking, etc., requirements appear to reveal that the parcel cannot be improved upon.) reveals value only as a vacant parcel that can't be developed.

Question: Should a summary narrative report for a non-mortgage-related matter for a legal client include a HC concerning what might be if a variance is permitted? I've had an opportunity to read a few narrative reports with sections for HC's and EA's but I don't know if this is something that needs to be discussed with the client before proceeding.

Thank you for your advice and please realize that I am aware that this is beyond my knowledge and my licensure, and that I do/will need to consult with my superiors.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
My license is residential and I'm working on a project with the appraisal litigation specialist in my company,

Is the "litigation specialist" an appraiser and if so what license level does he/she hold?

Land appraisal is difficult even for conforming residential lots.
 

ZZGAMAZZ

Thread Starter
Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Gees I was proud of my verbiage although, yea, it's pretty grandiose for a working stiff...actually one's a AR and the other's an AG & they will both be signing the report along with me. As always I'm just trying to understand the world around me by virtue of the AF.
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
Caveat: My license is residential and I'm working on a project with the appraisal litigation specialist in my company, with my due diligence to include input from the AF. [This is termed a "PropEc Disclaimer."]
Find yourself a new mentor and quickly. Anybody who would consider input from this forum for a litigation assignment is obviously a few bricks short of a load.
 

David Wimpelberg

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Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Anybody who would consider input from this forum for a litigation assignment is obviously a few bricks short of a load.

I guess I should get a few more bricks.:)

I do it all the time. I may not rely on it, but I may come across something useful.

It is possible to get to the point where one simply can't determine what can be done with the property, short of putting together a formal plan for the property and going before the zoning board/zoning board of appeals. If the appraiser arrives at that point, the appraiser will have to consult with the attorney on how to proceed.

Just a word of caution: If you do the assignment, even with a general certified mentor, you run the risk of being supeonaed if the case goes to trial. We've even had the secretary supeonaed. The attorney should be aware of who is working on the report and their qualifications; better attorneys ask these questions.
 

ZZGAMAZZ

Thread Starter
Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
PL1957: I respectfully disagree for obvious reasons--concerning the wealth of information available on the forum--and I offered a caveat in an effort to preclude responses that addressed my lack of knowledge.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Z...

Have you ever seen the procedures and techniques used for market analysis and HBU of a commercial lot? It's daunting for us newbies.
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
PL1957: I respectfully disagree for obvious reasons--concerning the wealth of information available on the forum--and I offered a caveat in an effort to preclude responses that addressed my lack of knowledge.
I wasn't refering to your lack of knowledge, but your mentor's judgement in broadcasting the question.

While you will undoubtedly receive some excellent responses from knowledgable members of the forum, there is also a strong likelihood that you will receive some less-than-stellar responses as well.

If you quote responses from this forum, even in aggregate, I would think that you would be open on cross-examination to explain the less-than-stellar responses as well. IMO, the presence of the less-than-stellar responses would seem to reduce the value of the excellent responses, if not totally impeach them.

That's all I'm sayin ...
 

JT1974

Senior Member
Joined
Dec 16, 2006
Professional Status
Certified General Appraiser
State
Wisconsin
ZZGAMAZZ,

PL1957 is giving you some very good advice. I would agree that you can learn a lot on this forum and there are a number of very knowlegable appraisers (i.e. PL 1957, Santora, Vertin, etc.) whose comments you can take to the bank. On the other hand, there is an abundance of appraisers who know "just enough to be dangerous" who often chime in with bad advice. Due to all the bad advice that is offered on this forum, I would no reference it as a source for anything that may end up in court.

Also, at the risk of sounding like a salesman for the AI, I would highly recommend you get a copy of the book Market Analysis for Real Estate Concepts and Applications in Valuation and Highest and Best Use written by Stephen F. Fanning, MAI. The book contains many of the answers that you are seeking and lays out site analysis in a methodical step by step process. You could also rest assured that quoting Stephen Fanning's book as a source for your methodology would go over much better in court than quoting this website.

Good luck with your assignment.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
That's a good book Jason. I have it on my desk and read it while eating lunch.
 
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