Remnant Parcels of Land

[Mike Boyd]

Mr. Boyd,

For a sale determination to the one buyer I don't doubt what you say as a seller trying to justify a price to the buyer. The study would be a negociation tool only. Because the fact remains, this is a study of value in use, not market value. If this one buyer refuses to buy, there is no apparent market for the land.

Webbed.

I agree Mr. Feet, but isn't that what this assignment was all about? To determine how the added land would benefit this particular buyer? So, the appraisal would only be valid for that specific property. I don't think that it would be viable to produce a one-size-fits-all report. Since it is too small to build on, it is quite likely that there would be no other apparent market for the land.

 

[Mark K]

These parcels will almost always sell to a neighbor at some discounted value. You need to find a right-of-way appraiser for assistance. He/she should have remnant sale studies that indicate a reasonable discount factor to apply to the property. These studies generally analyze multiple sales of remnant parcels and many r/w appraisers search for sales of seemingly useless parcels just for this reason. I find about one a year to add to my files.

Depending on the particular remnant, I've used discount factors of 0-95% of adjacent land values. Some of these remnants are in high demand, others are practically given away.

Occasionally there is no willing purchaser and the state will keep the property as additional r/w. Someday somebody will want it.