perk test...

[tim ferguson]

what role does a perk test play in the appraisal process? is it necessary to be able to determine HBU? is appraising a lot without a perk test like playing russian roulette? i had an another appraiser tell me today that it is necessary to the appraisal process, but could not find any posts pertaining to this.

 

[Mike Garrett RAA]

Not part of my normal course of business.

 

[Joyce Potts]

Perk?

what role does a perk test play in the appraisal process? is it necessary to be able to determine HBU? is appraising a lot without a perk test like playing russian roulette? i had an another appraiser tell me today that it is necessary to the appraisal process, but could not find any posts pertaining to this.

A 'perk' test or soil percolation doesn't normally come into play in most appraisals. What brought that up? Did you see something obvious like a sink hole or something else?

Nor have I ever seen a perk test have anything to do with HBU. That would be highly unusual, I would think.

Whenever I appraise a vacant residential lot, i'll add:

"This appraisal assumes that no hidden site conditions exist that would render the site unsuitable for building."

Looking forward to other posts on this one.

 

[tim ferguson]

i was speaking to another appraiser about a land lot i was appraising, and she mentioned that she believed that a perk test was necessary to determine whether the land could be developed/HBU. i didn't think so, but i do know of several places in different areas where perk tests have failed and prevented people from building... i guess they should have checked before they made their purchases....

 

[Tejus]

.

http://appraisersforum.com/general-appraisal-discussion/92248-septic-system-inspection-results.html

.

 

[Otis Key]

Not part of my normal course of business either! However, suggest you go back and reread H&BU...especially the part about "legal". I don't think they could even get a permit to build if the perk test wouldn't pass.

 

[Michael Schendel]

What if they aren't going to build on it. What if they want to buy raw land and will never develop on it, but highest and best use says it should be developed. Owner of said land will never provide a perk test becaue they are not going to develop it.

Acorrding to the appraiser who you talked with, a perk test is "necessary to determine whether the land could be developed/HBU."

If no one will provide a perk test and it is necessary then land must have no value???

 

[wyecoyote]

I would say from my experince a perk test is neccessary. There is some land in these parts that won't perk. Perking or not in these parts can and does make a difference in value. If a property doesn't perk then either an engineered system has to be built or you may not be able to build on the property. Most buyers of vacant land require a perk test before purchasing.

 

[Ultraviolet]

If a septic system is required for a vacant lot, I always make the assumption that the site will perc for installation of a traditional septic system.

Alternative septic systems are very expensive ($15,000 to $25,000 depending on soil conditions) and require a permit from the state (not county) department of environmental quality (in my state). The permit process can take months and is generally unpleasant. Not to mention that they can be difficult and expensive to maintain and buyers may react negatively to them.

Thanks, but I don't feel like paying $10,000 to $20,000 for someone's alternative septic system when the lot doesn't perc and their dream house is on hold ...

I also make the same type of assumptions about water quality/adequacy if a private well is required, or if a shared well is being used.

Vacant land can bite, so CYA!

 

[Joshua Fookes]

I think it is like everything, It depends.

Location, location, location.

It does make a difference in most areas I'm in when I'm looking at vacant land.

There are some places that the agents won't write up a contract without a perc contingency.

Those sellers that insist on selling "as-is" usually pay for it in the sell price.

There are other places where it is not such an issue.

As a buyer of land I'd want to know for SURE, unless the budget for the project was skies the limit anyways. (+10K for engineered vs. Conventional is not always a deal breaker).