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Vacant Land, SOW, HC & EA Questions

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Just got a phone call for a vacant land appraisal.

Located on main street, corner lot, medium size rural town.

Scope of Work:

1. Establish value of vacant lot with consideration given to the fact that it will be developed into a driveway for access to land in back of the property that will be developed for business use.

2. Establish current value.

3. Establish HBU value.


Now I know I will need to establish the fact that the future planed usage is legal as a driveway. I am thinking that this will also need to be done as a hypothetical condition, since the lot is not a drive way at the present time.

Now do I need to toss in EA that the town board and zoning will approve the use of the lot as a driveway?

How would you approach this assignment??? What red flags would you look for?

Thanking you in advance for your answers????
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
So, there is a parcel which is clearly land-locked and has no access to either of the intersecting roadways, correct ? What is the Intended Use of your report ? What person or process will it ideally serve ? Is it an as-is (today) value that they want to fulfill ? It seems harder to postulate another value when.....the zoning details and approvals are not yet satisfied, right ? So, why the EA ?

And, you say that this vacant piece is to "be developed" to just to facilitate a "driveway" to this other no-access parcel ? How does the town tax a driveway ? Is there going to be the combination of two lots into one larger "business" lot with a very irregular shape as the driveway is being completed ? Does this "land in back" already have utility connections ?

Any such driveway will probably have a minimal 12' or 16' (?) width. I'm envisioning a possible junction of 4 rectangular lots...with one common point to all of them. How is a 12' or a 16' driveway going to pass from the corner lot to the distant lot withOUT crossing some part of at least one of the two adjacent lots (to the corner) ? Is a small area of an adjacent lot being sold to this business development plan ? You know the lot line configuartions there, I'm only trying to imagine what exists.

Are the adjacent two properties to this corner currently improved ?,.....are they residential in such current use or are they other retail/comm. businesses ? Any "corner" location is a unique element of identification and status. One can only hope that you might find other vacant corner lot sales in this or nearby towns.

Red flags ?......is someone saying that inadequate comparables were used, or that other corner sales came from too far away, or that the sold data was for a different zoning/use. Sometimes.....the better market data is just not available to fulfill a differing use and plan on the part of an individual. Who is your client ? Every now and then it can seem best to suggest.....do this first, and when that is done and approved......give me a call then.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
So, there is a parcel which is clearly land-locked and has no access to either of the intersecting roadways, correct ? At this point I would need to say yes, as I have not looked a the property behind this lot to be appraised. What is the Intended Use of your report ? To establish market value of the lot at present. What person or process will it ideally serve ? Buyer to make a decision to buy or not. Is it an as-is (today) value that they want to fulfill ? Yes and a future value if it is assemble to the lot behind. It seems harder to postulate another value when.....the zoning details and approvals are not yet satisfied, right ? Yes, So, why the EA ? That is what I am asking, but by you answer I see an EA will not work in this case for the future value.

And, you say that this vacant piece is to "be developed" to just to facilitate a "driveway" to this other no-access parcel ? Correct How does the town tax a driveway ? Good question, I will need to research it. Is there going to be the combination of two lots into one larger "business" lot with a very irregular shape as the driveway is being completed ? I will need to ask, but at this point I would assume so. Does this "land in back" already have utility connections ? Yes according to the real estate agent that called me. I will need to research it as well tomorrow.

Any such driveway will probably have a minimal 12' or 16' (?) width. I'm envisioning a possible junction of 4 rectangular lots...with one common point to all of them. How is a 12' or a 16' driveway going to pass from the corner lot to the distant lot withOUT crossing some part of at least one of the two adjacent lots (to the corner) ? Need to view the property and look at platt maps. Is a small area of an adjacent lot being sold to this business development plan ? You know the lot line configuartions there, I'm only trying to imagine what exists. again I will need to reseach it.

Are the adjacent two properties to this corner currently improved ?,..... Yes are they residential in such current use or are they other retail/comm. businesses ? retail commercial Any "corner" location is a unique element of identification and status. One can only hope that you might find other vacant corner lot sales in this or nearby towns. In this town I have two in the past 24 months where homes were purchase with the intent to remove then and business place on both lots. They were also cornor lots as well. So will not need to travel far.

Red flags ?......is someone saying that inadequate comparables were used, or that other corner sales came from too far away, or that the sold data was for a different zoning/use. Lucky me, I have sales in the town as out lined above. Sometimes.....the better market data is just not available to fulfill a differing use and plan on the part of an individual. Who is your client ? Buyer Every now and then it can seem best to suggest.....do this first, and when that is done and approved......give me a call then.

I agree. However the buyer is trying to do this on the QT and not having a lot of people know about what is about to happen. I think s/he is a big fish in a very little pond and can get their way with the powers that be.

thanks for the questions, it gives me cause to stop and think. This is a nice four figure appraisal. and being in a small rural town, not big bucks for the lot.
 
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