Well, Septic, Checmical Dumps, Wet Lands Permits.

[moe cohen]

This is different but has some relevance. When doing a commercial appraisal in an urban environment I ask for what is called here a "Green Card" issued by state inspectors who looked for building code compliance. We do not act as Police but note it in the report.

 

[Ray Miller]

As I do a lot of rural properties that are being converted from working farms to farmetts. These are the ones that I check on. Because a number of changes for permits have taken place over the last 20 years. Same with free flowing creeks, land that is near or contagious to public lands. The rules imposed by these goverment agencies can and do affect the value of property.

For example I own 640 acres in a partnership that is contagious to the Lower Wisconsin River Parkway and the Wisconsin River. We are not allowed to build in certain areas, nor can we cut roads or take out trees. This dose have effect value of the property. If I as an appraiser did a report and I failed to note this and take this into consideration in my opinion of value, would I not be at fault for lax and improper work.

The acreage’s with new homes and new wells/septic systems I don’t check. But I do check for old dumps and old waste dumps and make notes. I do put a statement in that I assume that all permits are correct.

Now you people that appraiser western lands just out side of Denver. Do you take in to consideration the value of water rights, but free flowing streams, irrg. ditches, and wells. Do the amount of water affect the value of property? Dose the age of the water rights affect the value of the property? I have friends just outside of Denver in the past several years got into water fights because people above them were taking more water then they should. Left no water for them and the had senior rights to the new homeowners above them. One or two even threaten to pack a shotgun for the first one they caught stealing water.

Back here in Wisconsin, they are just now starting to watch well/water rights as to how much water you can pump. So if a property can pump 2M CU.ft. of water and you neighbor can only pump 200,000 CU.ft. of water. Which property has move value?

Is this something that people working the rural areas should start watching and understanding. Same as amount of shoreline own or the about of rock out cropping’s, Wooded vs. open land.

 

[Michigander]

Large tracts of land that are developable are different than single family homes smaller tracts of land. I don't think you explained that in your initial post. Land that has development potential, IMHO should not be appraised by typical residential appraisers, but becomes more of a commercial appraisal, and quite a bit more detailed than a standard form report. Whenever I am asked to do acreage, I refer it on to people who are qualified to appraise it.

 

[Mike Garrett RAA]

Typical for my market is this statement "well and septic systems are common to the area. The condition of both the well and septic is unknown to the appraiser but assumed to be functional. Client is advised to obtain a well and septic test should there be any question about the adequacy and quality of the water"

I am not an inspector nor am I an investigator...I am an appraiser. We make assumptions and one is that wells and septic systems are functional and legal.

 

[Ray Miller]

In my original post I was talking about the smaller tracts of land 5 acres up to 80 acres which are common in our area.

I used our 640 acres as an example, I should not of. The Colorado tract is a 15 acre parcel with a home on it.

 

[Walter Kirk]

In a way I can sympothise with the appraiser who didn't have time to check out all of those necessary items. Since lenders (the clients) only care about low price and rediculous turn times they are the ones to blame when important factors are not considered.

How many times have you had to explain to some phone monkey that you can't send in the report in three days because the zoning officer, tax assessor, building inspector, etc only has office hours on the third Thursday of the month from 6:00 P.M. to 8 P.M. The lenders don't care so why sweat the details just note that your report is conditional on all approvals and the lack of on or off site environmental problems.

 

[Restrain]

First, you are assuming permits are required. Not always. I had to have a permit for my septic system, but there's a lot of homes in the area that had septic systems put in before the permitting was required. Not my problem, just cite that they're there and typical for the area. I do not call for permits, inspections or anything else (except FHA). That's not my business. If sewage is perking up through the grass, then I so state it. Again, an observation.

Second, you are making a lot of assumptions about pumpage, etc that are not nationwide. Your concern about allowable pumpage may affect a dryland farmer or major user of water, but that would be a local issue.

Third, not all restrictions are readily disclosed. Some of these obscure restrictions may not be readily available to the appraiser. I am an appraiser. I do not perform title searches, or other similar inspections. It's not my job. If there's something on the title search, then the buyer should tell me or the broker. I ask the owner if there's any restrictions. If everyone says no, I am not going to spend 5 hours at the courthouse researching the title to see if there is a problem. Again, it's what is readily available through public records.

That's just the way it is.

 

[Tater Salad]

I agree with not checking for permits. I do walk acreage, though. Never know what you'll find.

Found a small graveyard once, headstones & all. Found some barrels with toxic waste stickers on 'em. Usually, I just find biting bugs. But I always remember that little graveyard when I'm tempted to just walk the perimeter.

 

[Pamela Crowley (Florida)]

IMO, this is all about using the proper due diligence for the individual property being appraised and knowing what is an important value influencing factor in the particular market where that individual property is located.

AKA: Geographical competence.

 

[moe cohen]

Very good point Walter.