Zoning and FHA

[Abester]

What may happen in the future is relevant.

At some point, the sun will turn into a red giant and swallow Earth. Should I start discounting now?

 

[Randolph Kinney]

The question was not when, but IF.

Wasn't it in the early 80s when farmland prices went skyhigh? Then a good many farmers went bust. Sing it Willie. Now those prices are high again? Was I dreaming of that and John Deere combines?

You are including the price appreciation after adjusting for the general inflation over those years, right? I don't thinks so. Try again.

 

[Abester]

You are including the price appreciation after adjusting for the general inflation over those years, right? I don't thinks so. Try again.

I don't know what that means.

 

[The Warrior Monk]

At some point, the sun will turn into a red giant and swallow Earth. Should I start discounting now?

So I take it that you believe the Principle of Anticipation is irrelevant in the valuation of real property? And Highest and Best Use is irrelevant, because it deals with potential future property use?

 

[Abester]

I told you I came over to your side. But, since you ask,

So I take it that you believe the Principle of Anticipation is irrelevant in the valuation of real property? And Highest and Best Use is irrelevant, because it deals with potential future property use?

The Principle of Anticipation - I anticipate I will be able to use my dwelling for the use for which it was designed, regardless of whether it burns down in 10 years. The lender anticipates that I will pay them back. I further anticipate that you will not care for that answer....

Highest and Best Use - nowhere in this discussion has the conclusion been drawn that the original poster's property was not the highest and best use of the site.

 

[The Warrior Monk]

The Principle of Anticipation - I anticipate I will be able to use my dwelling for the use for which it was designed, regardless of whether it burns down in 10 years. The lender anticipates that I will pay them back. I further anticipate that you will not care for that answer....

I anticipate the investor will state that he will occupy the property, get the residential rate, then head straight down to town hall with the plans and applications to change the property use. Investor saves 2 or more points on the mortgage. Happens all the time.

FWIW, when I was doing review work, I discovered that this is one type of assignment that was often flagged for review.

 

[The Warrior Monk]

Extreme general plan enforcement. Pretty rare I would think.

In practice, I don't see the particular circumstance with residential properties in commercial zones losing their use, simply because their aren't many in the areas I work. However, there is plenty of precedence with nonconforming uses being lost, regardless of what they where they are or what they are. The nonconforming residence gets treated the same as any other nonconforming use.

 

[Abester]

I yield. I suppose I anticipated that I would.

 

[CANative]

I yield.

Me too. Because I don't like arguing with David because he's usually on my side and I can't afford to lose any allies.

 

[DrDetroit]

Wow, this went really far afield, but I do appreciate the answers and the very scary insight as to how experienced appraisers think. Thanks to all.