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Rule Of Four? Incremental Discount For Lot Depth

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I have FORGOTTEN the rule of four- at least that's what I think it was called. Essentially, one theory has it that a narrow, deep lot has declining value farther from the frontage. I think it was _% to the frontage, _% to the next quarter, _% to the third and then lowest % to the last. Anyone remember this?
 

Gobears81

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I think it is 4-3-2-1, so if you add up those up (4+3+2+1) it comes out to 10 and the front quarter has 40% of the value, the second has 30%, the third has 20%, and the back quarter has 10%. I might be remembering it wrong.

Not sure what the purpose of your asking is, but the unit rule immediately comes to mind for eminent domain appraisals. The reason for mentioning that is that if they take the back portion, assuming there's no damages to the remainder, it could be a minor benefit to the owner based on a level unit value for compensation. But if it is a 100 by 100-foot lot and they take the front 10-feet, assuming there's no damages, the front "quarter" is no longer 25-feet, but 22.5-feet, so that doesn't necessarily mean that compensation for the front quarter should be considerably higher than the unit value for the entire site (ignoring proximity or other damages). Then again, I've been told that Illinois misinterprets the unit rule and I wrote an article once and one of the reviewers told me after viewing the draft that I'm misinterpreting the spirit of the unit rule so maybe only the first sentence is relevant to you :)
 

Terrel L. Shields

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I think it was originally based on a court ruling, rather arbitrary but commercial agents still apply it often enough I suspect it isn't far wrong
 

The Warrior Monk

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I remember learning this back in the day. Based on my experience, I wouldn't apply this as a general rule. For example, more frontage may be desirable for a retail use (especially multi-unit) in a village business district with lots of exposure to pedestrian and vehicular traffic. That's not necessary true in an industrial park where there is zero foot traffic.
 
Joined
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Certified General Appraiser
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Florida
I think it is 4-3-2-1, so if you add up those up (4+3+2+1) it comes out to 10 and the front quarter has 40% of the value, the second has 30%, the third has 20%, and the back quarter has 10%...
Yes, that was it. This is a simple appraisal for a seller, and since the lot is deep I wanted to show that the conclusion of value is consistent with observations from lots with a more standard depth. Much thanks for the quick reply.
 

George Hatch

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I remember it and under certain circumstances I think the general idea still holds up. Lot shape can definitely affect vehicular ingress/egress, building configuration and orientation and even the size, particularly when the local economics won't support vertical construction costs.
 
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