Ch 2 Flashcards
- Which two comparables can be used to determine a size adjustment?
- What is the per-acre value for the size adjustment?
- What is the positive adjustment for size to comparable 1?
- What type of adjustment should be made to comparable 4 for size (positive or negative) as compared to the subject? How much?
- Which two comparables should be used to value the difference in topography?
- What is the value of a level site versus a steep one?
- What type of adjustment should be made to comparables 1 and 3 for the steep lots, as compared to the subject?
- Which two comparables can be used to determine the adjustment for view?
- The adjustment for view (good versus average) should be $________.
- Comps 1 and 3 are the same except for size.
- $80,000 - $60,000 = $20,000 for 2 acres. $20,000 / 2 = $10,000 per acre
- It would be +$10,000.
- Comparable 4 is larger than the subject, so it would be a negative adjustment; -$10,000.
- Comps 3 and 4 are the same except for the difference in topography.
- $80,000 (Comp 3) - $75,000 (Comp 4) = $5,000.
- Because Comps 1 and 3 are superior to the subject in topography, the adjustment would be negative
- Comps 2 and 4 are the same except for view.
- $75,000 (Comp 4) - $72,000 (Comp 2) = $3,000.
Private restrictions on use may occur in the form of:
Easements
Deed restrictions
CC&Rs or subdivision covenants
Leases
Transferable Development Rights (TDRs)
Conservation easements
An easement is defined in The Dictionary of Real Estate Appraisal, Sixth Edition, as:
The right to use another’s land for a stated purpose.
Affirmative easement
The right to perform a specific act on a property owned by another.
= positive Easement.
Dominant Estate
A property that is served or benefited by an easement. The opposite of a servient estate, which granted the easement. Also known as the dominant tenement and the servient tenement, respectively.
Servient Estate
A property burdened by an easement; also known as the servient tenement. The servient estate is the opposite of the dominant estate (also known as the dominant tenement), which benefits form an easement.
Negative easement
An easement preventing a property owner from certain, otherwise permitted, uses of his or her land, e.g., agreeing not to do something such as building a wall or fence blocking an adjoining property’s view. The easement does not benefit a specific property, so there is no dominant estate.
Examples of negative easements include:
Conservation easements
Historic preservation easements
Facade easements
Scenic easements
The subject property has plenty of trees. Sale #2 is has been denuded. It sold for $40,000. In another appraisal we found out that the tree difference is $5,000 or 10% attributable to the difference in trees.
In comparison, the subject property is worth how much?
10% more (!)
not $5,000 more
$44,000
The xxx is now known as the Natural Resources Conservation Service. Their maps show soil types superimposed over black-and-white aerial photographs of the county.
USDA Soil Conservation Service
In a negative easement, the property owner is prohibited from doing something with his or her property, but there is no specific property that x.
benefits
Land that is not needed to serve or support the existing improvement. The highest and best use of the x land may or may not be the same as the highest and best use of the improved parcel. x land may have the potential to be sold separately and is valued separately.
defines
Excess Land
Land that is not currently needed to support the existing improvement but cannot be separated from the property and sold off. x land does not have an independent highest and best use and may or may not contribute value to the improved parcel.
defines
Surplus Land
