Vacant land & utilites question

[pgerarde]

I appraised a vacant piece of land. I have stated in the appraisal that it does not have electric, water and gas.

The owner disagrees. There are power lines/poles along the road which this site is on. I was taught that until there was an electric box/connection installed on the site, that the site did not have electric yet.

The same with the water. When they start to build on this site, they will pay around $2,500 total in fees and then it will be physically connected to a private water company for this area. The owner states that the site has water as the pipes run along his street. Again, I was taught unless it is hooked up we do not have water on the site.

I just wanted to make sure that I have not missed something here.

Any feedback would be appreciated.

Patti in Chino Valley, AZ

 

[Couch Potato]

Did you note the utilities are available, or give the misleading impression they don't exist in the area?

 

[pgerarde]

The land appraisal form has these questions under "site" I just put "none" to all the questions i.e. Elect/Gas/Water/San Sewer" as these utilites were not onsite at the time.

Patti in Chino Valley, AZ

 

[Sheikh Yerbouti]

Patti,

I've always interpreted that part of the land form to mean if the utilities are available at the lot line. The hook up cost is just part of the construction costs.

 

[pgerarde]

I asked the private water to confirm if the pipe they ran in the area was actually on the lot line and they could not confirm at this time.

Maybe I will just in the addendum the services that are available for that area. There is electric pole and there is a private water company serving the development.

Patti in Chino Valley, AZ

 

[Wendy]

I always note utilities as "on-site", "available" or "none".

"On-site" is only for properties that have established (ie: metered) electric to an on-property pole and water and sewer already hooked up or a good well and septic.

Be careful with water and sewer. Lines directly in front of the lot are most likely "available" (double check to make sure they can be tapped). Lines at the end of the street are generally not "available". I did a job not too long ago were the home owner had to install a $25,000 lift station to tie into sewer only 100 yards away. Ouchie!

 

[pgerarde]

Wendy, I like your way of identifing the status of the utilites. I will incorporate this into my land appraisals for the future. It does seem to resolve my problem.

Thank you,
Patti in chino Valley, AZ

 

[Mike Garrett RAA]

Are public utilities available?

Have tap fees been paid?

If they are available but the fee has not been paid, the site has no utilities.

 

[CANative]

When I use that generic land form (which is seldom bbecause I now use the AI forms for the most part) common to most appraisal software applications I put "See Comments" in most of the boxes and response cells. The addendum will contain narrative discussions of the subject property and relevant characteristics.

My land appraisals are for the most part narrative in style with a form attached for the convenience of lender clients.

 

[hastalavista]

Patti,

I've always interpreted that part of the land form to mean if the utilities are available at the lot line. The hook up cost is just part of the construction costs.

Ditto. (10 characters)