Uneconomic Remnant or another term?

[Terrel L. Shields]

Looks economic to me?? It appears to be plowed. 6 acres will produce a positive cash flow. The fact the owner does not profit from it is his own fault - the adjacent owner would probably pay market value, if not a premium, to own it.

 

[redfish]

If the 6 Ac is the triangle portion on the southwest corner it appears that a "flag" type residential lot could be developed and sold.

 

[Mile High Trout]

It's a surplus land portion, with differences in frontage and usability.

What's the term for land that has no road or access frontage? Apply that term to this limited section.

Probably you would diminish the value of that portion of land.

However, one speculates on what that sliver of land would sell to the neighbor for, when assessing such diminishment.

This sort of land is where neighbors fight and move fence lines or just willingly annex from one party to the other.

You could only call it a remnant if the subject and neighbors plots were previously combined, or there was some feature which was reminiscent of previous use. Correct?

 

[Michigan CG]

If the 6 Ac is the triangle portion on the southwest corner it appears that a "flag" type residential lot could be developed and sold.

No road frontage and the owner cannot split because of his already limited road frontage.

 

[CANative]

It's land that does not support the HBU but has a marketable value to the owner of a contiguous parcel. It's excess land. Value it separately.

IMHO.

Or just do it the easy way and say it has no measureable value. No one will be the wiser because it's kind of a geeky appraiser thing.

 

[Pittsburgh Pete]

It's land that does not support the HBU but has a marketable value to the owner of a contiguous parcel. It's excess land. Value it separately.

IMHO.

Or just do it the easy way and say it has no measureable value. No one will be the wiser because it's kind of a geeky appraiser thing.

I think you're partially correct. If it doesn't support the HBU that's all well and good but it doesn't appear to have any "independent" value as it doesn't have street frontage--it can't be accessed except by the current owner and/or the adjoining owner.

It should sell at a discount over fee simple values in the area. Our data locally indicates that parcels with no "independent" value sell for 15-25% of the fee simple value. The adjoining owner is under no compunction to purchase it (doesn't need it) and as such would expect a sharp discount.

 

[Mile High Trout]

The adjoining owner is under no compunction to purchase it (doesn't need it) and as such would expect a sharp discount.

Had to look that word up, interesting.

http://www.merriam-webster.com/dictionary/compunction

I suppose the proper approach would be to see how common this condition is amongst other area examples. Press the easy button and put comps in there with similar conditions...... Just kidding, geesh. But that's what would be best, in a perfect world.

One speculates this does not have agricultural benefit, or the farmer would certainly find a lot of value in every inch of available farming land. The excess land argument is relevant to the use of the land.

 

[CANative]

I think you're partially correct. If it doesn't support the HBU that's all well and good but it doesn't appear to have any "independent" value as it doesn't have street frontage--it can't be accessed except by the current owner and/or the adjoining owner.

It should sell at a discount over fee simple values in the area. Our data locally indicates that parcels with no "independent" value sell for 15-25% of the fee simple value. The adjoining owner is under no compunction to purchase it (doesn't need it) and as such would expect a sharp discount.

It's worth what someone would pay for some extra land to farm (or use for expansion if it were say some commercial land in the city, for example.) It may not sell for as much as if it was a separate, buildable lot but what's that got to do with anything?

Perhaps you're saying it's just as valuable to the present owner as it might be to the owner of the contiguous property?

 

[JTip]

Why would you want to cut it off? It's not like it's a skin tag. Plenty of things the owner can do with it. Old tire mountain, dig a hole, long term car storage, grand kids 6 acre four wheeler fun plot. It has plenty of usefulness.

 

[Terrel L. Shields]

why not ??

or a nice billboard? perfect for a cell tower..diguised as a tree