Release/reconveyance appraisal

[airphoto]

FRR,

Gotta give Ben credit .. he's a much better writer than I, and says things in greater detail and with superior clarity!

One other thing here: The lot split probably cannot occur without the lender's agreeing .. the original lot as described is encumbered. Don't believe that you'd ever see a split filed without the lender signing off on it (would invalidate the security agreement) ..

 

[Frederick R. Ruffell]

Thanks for your persistance, Airphoto and Ben. One more question, there is a proposed walkway easement across the parcel to be included in the valuation leading to the lots being split off. If the market considers this a detriment how is it classified. External or Functional obsolesence?

 

[Ben Vukicevich SRA]

FRR,

External

Ben

 

[airphoto]

Ben,

Are you sure? I was always led to understand that "external" was off-site. Given a walkway right-of-way to cross the site that wouldn't be external but a reduction in the available use of the site.

 

[Ben Vukicevich SRA]

Bill,

I'm never sure of anything in this business when it comes to external obsolescence. Your premise of using the effective site size (without the easement) is good and is what I use when someone tells me they have a 3 acre site in a subdivision of 10,000sf sites-you will usually find that the area over 10,000sf is encumbered by some kind of conservation/wetlands easement. So I appraise by the effective site size-hey they can grow flowers out there and catch Lyme Disease while they're at it. These types of "clean" easements rarely cause a loss in value due to external obsolescence.

Regarding FRR's easement, it may or may not be detrimental. It could be a nuisance based on the frequency of use, similar to a property on a traveled street. We don't know for sure but assuming that it is,(maybe the easement runs close to the existing home and people will be looking in the windows as they walk by) and he feels the need to adjust, I would think it would be similar to say, a high tension electrical or gas line easement on the property. An aggravation caused by an outside source. In this case, the need of access to the rear property. Could also be similar to a "flag lot" where the rear home has a driveway easement across the front property and your neighbors are always looking in your back windows.

So adjusting on the effective site size takes care of the loss of the use of the subject site due to the easement but not the nuisance caused by the easement. That would be external obsolescence, in my feeble mind anyway. What do you think?

Ben