Uneconomic Remnant or another term?

[Michigan CG]

Appraising a 48-acre tract with home. I have about 6 acres that should go to another property owner based on the shape of the land. I do not feel it adds significant contributory value and would be more valuable to a contiguous homeowner. A buyer would not pay more or less for the property based on this 6+/- acres.

Going back to my memory of appraisal classes I remembered a term "uneconomic remnant" which is not in the Dictionary of Real Estate Appraisal nor in the Appraisal of Real Estate. Remnant is in the dictionary. Correct term or is there a better term?

I don't know how to post an image of the site.

 

[Michigan CG]

PDF attached.

 

[Mr Rex]

Appraising a 48-acre tract with home. I have about 6 acres that should go to another property owner based on the shape of the land. I do not feel it adds significant contributory value and would be more valuable to a contiguous homeowner. A buyer would not pay more or less for the property based on this 6+/- acres.

Going back to my memory of appraisal classes I remembered a term "uneconomic remnant" which is not in the Dictionary of Real Estate Appraisal nor in the Appraisal of Real Estate. Remnant is in the dictionary. Correct term or is there a better term?

I don't know how to post an image of the site.

google it, it comes up

 

[CANative]

I just refer to those as remnant lots. If it has more value to a different owner for a different use isn't it excess land?

Why don't you value it separately?

 

[Pittsburgh Pete]

Oftentimes see such "uneconomic remnants" in eminent domain cases.

Not sure if the term is applicable in your instance--you just have a portion of a larger site that has no contributory value.

Uneconomic remnants are typically what is left after a taking that has no independent value--your 6 acres has no independent value but in a different sense.

 

[CANative]

Oftentimes see such "uneconomic remnants" in eminent domain cases.

Not sure if the term is applicable in your instance--you just have a portion of a larger site that has no contributory value.

Uneconomic remnants are typically what is left after a taking that has no independent value--your 6 acres has no independent value but in a different sense.

I do not feel it adds significant contributory value and would be more valuable to a contiguous homeowner

Excess land?

 

[SpartanAG]

It looks like that land is being farmed by the owner of the parcel to the north. Maybe call it excess land? Considering it is currently being farmed, does it have a different H & B Use from the main parcel? If it does have a different H & B use, could it be valued separately from the main parcel?

These are just a few things that ran through my mind when I saw the sketch.

 

[Michigan CG]

Oftentimes see such "uneconomic remnants" in eminent domain cases.

Not sure if the term is applicable in your instance--you just have a portion of a larger site that has no contributory value.........

That is what I was thinking. When I Googled the term eminent domain links came up making me think the term is not applicable here.

As to valuing it separately it has no road frontage and basically only one realistic buyer, the farmer who owns the contiguous land. The assignment is to value the property As-Is and a separate value is not appropriate IMHO.

I don't like excess land because of the suggestion that it can be separately marketed (excellent excess) when in reality there is only one real potential buyer. To complicate it the farmer farms the land on a gentleman's agreement that he maintains that area and pays no rent so he has no motivation to buy something that he reaps free benefits from.

 

[CANative]

Technically, if it is excess land you would have to value it separately (at least that is the AI's position.)

And I don't think just because there is only one potential buyer (what my buddy Chet Boddy refers to as a "bi-lateral monopoly") means it is not excess land and has no market value. It's farmland so you could develop a value opinion using the IA and the SA.

 

[JTip]

Surplus land. Can't be subdivided, more grass to cut.

Or put up a gate (with padlock) at the bottleneck, drop a singlewide, instant mother-in-law suite.