Portion of subject tract is inaccessible

[Val]

I have a tract of agricultural land where a significant portion is inaccessible due to a large pond. See attached exhibit. The only possible access to this cut off area is from an adjacent parcel. Wondering how best to go about an adjustment for lack of access to this area. It can't be worthless as it would have some value to the neighboring parcel owner (amount it would increase their property value by adding). But the tricky part is that the neighboring property owner may not be inclined to add that piece unless the price is discounted significantly. I suppose another option would be to explore the cost of acquiring an easement across parcel A. Would appreciate any suggestions on how to approach this.

 

[JTip]

First, I would figure out WHY this was subdivided/sold this way, may answer some questions.

 

[Red Flint]

Value land and pond with one set of comps. Value interior land with second comp set, find land sales where cannot be developed, floodway or floodplain, land with perpetural conservation easement, landlocked parcels, etc.

 

[BRCJR]

I have a tract of agricultural land where a significant portion is inaccessible due to a large pond. See attached exhibit. The only possible access to this cut off area is from an adjacent parcel. Wondering how best to go about an adjustment for lack of access to this area. It can't be worthless as it would have some value to the neighboring parcel owner (amount it would increase their property value by adding). But the tricky part is that the neighboring property owner may not be inclined to add that piece unless the price is discounted significantly. I suppose another option would be to explore the cost of acquiring an easement across parcel A. Would appreciate any suggestions on how to approach this.

I would appraise it as a whole. Since I doubt anyone could come up with true impeccable evidence and support for the "surplus" value I would form an opinion on the lower end of my adjusted sales range and state why I did so.

Other possible solution is a cost to cure. Build a footbridge across the pond.

 

[Terrel L. Shields]

HBU? Is it used for timber or recreation or 'real' agriculture (pasture, crops, etc.) So, how does the owner access it?

For hunting or recreation, I'd say no real defect. Some people and agencies would purchase for a wildlife sanctuary... nature conservancy or some land trust.

 

[Tom D]

Is there anything valuable besides the view. How does the grass get cut over there.

 

[jay trotta]

Is there anything valuable besides the view. How does the grass get cut over there.

Sheep farm.......couldn't resist

 

[Terrel L. Shields]

Size? 5 acres? 500?

BTW, I have another similar situation coming up soon. Same issue. The north side of the property is a steep hillside. The flat top of part of it was fenced years ago by an adjacent owner. There is some 20 acres which has been 'hostilely' held since. And it is inaccessible by virtue of a bluff of rock to the larger 210 acres that is accessible. The occupant who owns the adjacent parcel claims it but never went to court. But it has been at least 7 years so they could legally claim it....? What to do, what to do...

 

[Mark K]

Cost to cure...price of a small rowboat.

Seriously, studies in my files for this type of area show a reduction in value down to about 10-25% of fee value, essentially the value of land locked parcels, IMO.

OTOH, I've seen landlocked parcels of good ag ground sell for nearly 100% of fee to an adjacent owner. Lot depends on the quality and utility of the parcel.