Mike Kennedy
Elite Member
- Joined
- Sep 28, 2003
- Professional Status
- Certified Residential Appraiser
- State
- New York
Specific Zoning
Many years ago, I worked for a mid-sized city as a zoning administrator, and it was there that I had my first contact with Real Estate Appraisers. They would come to the planning office inquiring about the specific zoning of a property and what uses it permitted. Through this experience, I understood the importance of specific zoning on the value of real property long before I started appraising real estate.
Until recently, I regularly performed review appraisals. Without a doubt, one of the most common incorrect items on the reports was the specific zoning section. It never ceased to amaze me how quickly appraisers were willing to minimize this particular detail. There was always data occupying the zoning field, but it was typically something generic. More often than not, the data included was simply the county use code that was easily obtainable from the county web site. Although the use code is appropriate for estimating how a property is being used, it is not the same as the specific zoning.
When I see this, I can’t be sure if appraisers grasp the particulars of zoning or if they’re just cutting corners. Either way, it isn’t a detail that should be quickly glossed over. I understand that a home located in a residential subdivision is probably zoned residential and is a legal use. However, if an appraiser is going to take highest and best use seriously, obtaining the specific zoning is essential. How do you know if a use is legally permissible if you don’t obtain the specific zoning? How do you know if a use is physically possible if you don’t know the setback or ground coverage requirements that the zoning mandates?
In most areas of the country, each municipality and township has its own zoning ordinance it governs. As such, an appraiser will probably need to deal with several different ordinances. I’m not saying that the appraiser should have an exhaustive understanding of each and every ordinance in their area, but knowing how to obtain the proper information, having a basic comprehension of the different zones, and being able to contact someone with questions is a must.
If you live in an area where the zoning or planning office is only open a day or two a week, I suggest you visit the office on one of those days and obtain a copy of the zoning map and ordinance. However, unlike the old days when appraisers visited me at my planning office to get zoning information, many zoning maps and ordinances are also available on the municipality or township web site. With a little research and possibly some leg work, obtaining the correct and specific zoning information is easier than ever.
In short, performing an adequate highest and best use analysis is a USPAP requirement for every assignment, and it is difficult to defend your analysis if you don’t report the correct zoning. As such, you should not minimize the importance of this information; it only takes a few extra minutes to provide the correct details and make your report the best it can be.
To comment please visit: chiefappraiser.appraiserloft.com
Bill Waltenbaugh, SRA | Chief Appraiser
Many years ago, I worked for a mid-sized city as a zoning administrator, and it was there that I had my first contact with Real Estate Appraisers. They would come to the planning office inquiring about the specific zoning of a property and what uses it permitted. Through this experience, I understood the importance of specific zoning on the value of real property long before I started appraising real estate.
Until recently, I regularly performed review appraisals. Without a doubt, one of the most common incorrect items on the reports was the specific zoning section. It never ceased to amaze me how quickly appraisers were willing to minimize this particular detail. There was always data occupying the zoning field, but it was typically something generic. More often than not, the data included was simply the county use code that was easily obtainable from the county web site. Although the use code is appropriate for estimating how a property is being used, it is not the same as the specific zoning.
When I see this, I can’t be sure if appraisers grasp the particulars of zoning or if they’re just cutting corners. Either way, it isn’t a detail that should be quickly glossed over. I understand that a home located in a residential subdivision is probably zoned residential and is a legal use. However, if an appraiser is going to take highest and best use seriously, obtaining the specific zoning is essential. How do you know if a use is legally permissible if you don’t obtain the specific zoning? How do you know if a use is physically possible if you don’t know the setback or ground coverage requirements that the zoning mandates?
In most areas of the country, each municipality and township has its own zoning ordinance it governs. As such, an appraiser will probably need to deal with several different ordinances. I’m not saying that the appraiser should have an exhaustive understanding of each and every ordinance in their area, but knowing how to obtain the proper information, having a basic comprehension of the different zones, and being able to contact someone with questions is a must.
If you live in an area where the zoning or planning office is only open a day or two a week, I suggest you visit the office on one of those days and obtain a copy of the zoning map and ordinance. However, unlike the old days when appraisers visited me at my planning office to get zoning information, many zoning maps and ordinances are also available on the municipality or township web site. With a little research and possibly some leg work, obtaining the correct and specific zoning information is easier than ever.
In short, performing an adequate highest and best use analysis is a USPAP requirement for every assignment, and it is difficult to defend your analysis if you don’t report the correct zoning. As such, you should not minimize the importance of this information; it only takes a few extra minutes to provide the correct details and make your report the best it can be.
To comment please visit: chiefappraiser.appraiserloft.com
Bill Waltenbaugh, SRA | Chief Appraiser
