PROPERTY INSPECTION AND ANALYSIS: THE SITE

Chapter 6

CHAPTER TERMS AND CONCEPTS

Access

Assemblage

Association agreement

Building footprint

Condominium

Corner lot

Coverage ratio

Cul-de-sac lot

Depth

Excess depth

Flag lot

Frontage

Gross area

Highest and best use

Interim use

Interior lot

Key lot

Location

Lot shape

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CHAPTER TERMS AND CONCEPTS

Lot type

Net area

Off-site improvements

On-site improvements

Orientation

Planned Unit Development

(PUD)

Plottage

Plottage value

Private restrictions

Public restrictions

Right of access

T-intersection lot

Topography

Townhouse

Transportation

Useful area

Utilities

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LEARNING OUTCOMES

1. List three reasons for making site inspections.

2. List the four criteria for highest and best use.

3. List the three main categories of site information.

4. Calculate the area of a square, rectangle, triangle, trapezoid, and circle.

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5

PREPARING TO INSPECT THE SITE

Reasons for Inspecting the SiteEstimate Highest and Best Use

oThe land use that will support its highest value Identify Key Features

oPhysical characteristicsoSite location elementsoPublic and private restrictions

Identify any Legal or Physical Problems

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LEGAL PROBLEMS

• Non-Conforming Use:

• Unrecorded Easement:

• Encroachment

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PHYSICAL PROBLEMS

Flood Risk

Soil or Fault Problem

Environmental Hazards

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WHAT DATA AND TOOLS ARE NEEDED?

• Sales History of Subjecto Three years of history prior to date of value

• Site and Neighborhood Datao Flood maps, aerial photos, easements (title report),

plat map, zoning map and available utilities• Data Sources

o City or County Officeso MLS, FEMA and Public Records

• Tools and Equipmento Checklist, computer, measuring device, camera, map

or GPS

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SITE DESCRIPTION SECTION OF THE URAR

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HIGHEST & BEST USE

• The Uniform Standards of Professional Appraisal Practice.

o Requires an analysis of Highest and Best use if intended use of the appraisal is to form an “….opinion of market value”

o This is the only time USPAP requires an opinion of highest and best use.

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HIGHEST AND BEST USE ANALYSIS

Definition “The reasonable and profitable use that will

support the highest land value as of the date of value.”

Use Criteria Physically possible Legally permissible Economically feasible Most productive (Profitable)

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HIGHEST AND BEST USE ANALYSIS (Continued)

Purpose Basis of data collection Suggests the appraisal methods Is usually required by USPAP

Use Assumptions The highest and best use as if vacant land The highest and best use as presently

improved

Figure 6.2

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MAJOR CATEGORIES OF SITE INFORMATION

1. Physical Characteristics2. Site Location Elements3. Public and Private Restrictions

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PHYSICAL CHARACTERISTICS OF THE SITE

1. Size and Shape2. Topography, Soil, and Geology3. Drainage and Flood Hazards4. Environmental Factors5. Form of Ownership

a) A physical and legal feature6. Lot Type and Orientation7. On-Site and Off-Site Improvements

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SIZE AND SHAPE

• Size is Usually in Square Feet or Acres

• Assemblage or Plottage Joining of two or more parcels May/May not increase value (Plottage Value)

• Gross vs. Net Lot Area

• Building Footprint or Coverage Ratio

• Lot Shape and Depth

• Frontage and Excess Depth

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TOPOGRAPHY

Topography or Contour Lot Type and Orientation View lots City, Ocean, Lake, Forest

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SOIL, & GEOLOGY

Soil and Geology Poor soil stability

Soil too dense or sandy

Permafrost

Swamps

Poor absorptiono Poor septic systems

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DRAINAGE AND FLOOD HAZARDS

• Appraiser Should Note the Drainage Pattern

• Flood Maps/Flood Plain

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ENVIRONMENTAL FACTORS

• Radon and Methane Gas• Hazardous Wastes• Lead Paint• Former Oil Fields• Toxic Wastes

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FORM OF OWNERSHIP

Conventional Detached Lot

Airspace Condominium

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LOT TYPE AND ORIENTATION

Common Types of Lots

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ON-SITE & OFF-SITE IMPROVEMENTS

• On-Site Improvements Earth leveling, grading, filling, drainage,

compaction or excavation• Off-Site Improvements

Widening and paving of streets, curbs, gutters, sidewalks, alleys, street lighting and parking

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ANALYSIS OF SITE LOCATION ELEMENTS

• Evaluation of the Neighborhood• Proximity to Earthquake, Flood and

Environmental Hazards• Comparison with Neighborhood

Properties• Utilities• Transportation

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EVALUATION OF THE NEIGHBORHOOD

• Convenience to Schools, Hospitals, Community Centers

• Relationship to Employment and Shopping• Market Appeal of the Neighborhood

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PUBLIC RESTRICTIONS

• Regional and Master Plans• Zoning Regulations• Subdivision Requirements• Building and Safety Regulations• Environmental Protection Laws• Federal Flood Zones• Geological Hazard Zones

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PROPERTY TAXES

Ad Valorem

Direct Assessments

Property Transfer Charges

Leases (In California)

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PRIVATE RESTRICTIONS

• Deed Restrictions

• Association Agreements

• Easements

• Leases

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AREA OF SHAPES

SideSide

WL

hb1

b2h

b1b2

h

b

Area = s x s

Area = W x L

A = b1 +b22

A= ½ h x b

A = Π r2

h b

r

SUMMARY

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Site inspection is one of the most important parts of the entire appraisal process. It is desirable to have certain kinds of information before the actual site inspection begins.

The tools and equipment necessary to perform the inspection were outlined. During the inspection, the appraiser should first investigate the physical characteristics of the site. Physical characteristics also include the form of ownership, type of lot, its orientation, and physical access. The improvements made to the site or on areas surrounding it must be noted.