Zoning, Use and Competence

[Elliott]

How many AUs is the 10 acres? If you don't know
that I don't think you should appraise it.

I think a licensed residential could do a 'urban'
house as long as there are houses on either
side of it.

 

[Tim Schneider]

a)A rural property used residential on 10+ acres zoned Agricultural (no Ag use present)

In my area, almost all property not with the city limits (on city utilities) is zoned AG. The majority of SFR residences on AG zoned land are not tied to farmed land. They are on parcels sized from 3-20 acres. Most of those parcels have been divided in such a way that frontage on the road does not allow for marketable parcels (at this time) to be split off. Sure, in 25 years the market may change to where subdivisions will be made out them, but I am not going to speculate that far out. So, when I am of the licensed status, I would be able to do these types of properties.

Tim

 

[The Warrior Monk]

My thoughts are...what is the present use? Lets say the property is zoned commercial but is, and has been, used as residential. If the highest and best use was something different...then why hasn't it already been changed? Thus my theory the highest and best use is, as improved.

I don't look at the property from the perspective of an owner not interested in selling the property, but rather from the buyer interested in purchasing the property. The owner/occupant not interested in selling the property sees HBU "as improved"...until they sell, of course.

If similar properties in the area have sold and resold, and the uses aren't changing, then there is a basis for arguing that HBU is "as improved."

 

[Fred]

My thoughts are...what is the present use? Lets say the property is zoned commercial but is, and has been, used as residential. If the highest and best use was something different...then why hasn't it already been changed? Thus my theory the highest and best use is, as improved.

That reminds me of the guy who jumped off the Empire State Building. Half way down, someone yells out the windown "How are you doing?" The guy yells back, "OK, so far!"

I guess a better response is that real estate markets are not perfectly efficient, which may be the only reason that there are real estate appraisers.

Zoning, in and of it's self, does not necessarily create a "higher use".

And how will you determine whether it does or whether it doesn't on any particular assignment, without doing some commercial appraisal. The first thing you might want to look at is whether it's worth more as a redevelopment site, and that means using commercial land sales.

 

[Mike Garrett RAA]

How many AUs is the 10 acres? If you don't know
that I don't think you should appraise it.

I think a licensed residential could do a 'urban'
house as long as there are houses on either
side of it.

10 acres won't feed a cow and calf...IN MY MARKET.

 

[Couch Potato]

In some subdivisions in my town, 10 acre lots are typical, and the zoning is Agricultural for most properties not in the city limits.

 

[Zero]

My thoughts are...what is the present use? Lets say the property is zoned commercial but is, and has been, used as residential. If the highest and best use was something different...then why hasn't it already been changed? Thus my theory the highest and best use is, as improved.

Zoning, in and of it's self, does not necessarily create a "higher use". There is more to the test for highest and best use than just "legally permissible".

Lets see if my memory serves me....

Legally permissible
physically possible
financially feasible
maximally productive

I think that is correct. We have some older homes on the city's westside where the city changed the zoning to C-6, commercial. Single family residences are mixed in along with some small commercial usages like a legal office or beauty shop. Since there is really little demand for more commercial space, the existing use (could be interim too) is the highest and best use.

OK. Can this typeo of property be done on a Fannie form? What/how to disclose this so as not to be misleading but not spend 3 weeks writing addenda? Coincidentally I now have an order pending that is a commerical zoned residence like this and am wondering what to do with it.

 

[Fred]

OK. Can this typeo of property be done on a Fannie form? What/how to disclose this so as not to be misleading but not spend 3 weeks writing addenda? Coincidentally I now have an order pending that is a commerical zoned residence like this and am wondering what to do with it.

I'd start at square one, recognizing that real estate is land. Real estate is land and what is attached. If the land is commercial, then why would it fit on a report that says in bold letters at the top that the property is residential?

 

[Mr Rex]

I'd start at square one, recognizing that real estate is land. Real estate is land and what is attached. If the land is commercial, then why would it fit on a report that says in bold letters at the top that the property is residential?

Until he does a H&BU analysis and checks to see if Residential is an allowed use etc, its only zoned commercial, not necessarily commercial land. If that were the case, every existing residence in areas with zoning that at some point has changed from Residential to Commercial would automatically become "commercial". Just doesn't happen that way.

 

[Zero]

I'd start at square one, recognizing that real estate is land. Real estate is land and what is attached. If the land is commercial, then why would it fit on a report that says in bold letters at the top that the property is residential?

And the letters in bold for use of the property on the public record is residential, thus the dilemma. It's just not that simple, even if you are a CG.