PROPERTY INSPECTION AND ANALYSIS: THE SITE

1. Chapter 6 PROPERTY INSPECTION AND ANALYSIS: THE SITE

2. 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

3. 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

4. LEARNING OUTCOMES List three reasons for making site inspections. List the four criteria for highest and best use. List the three main categories of site information. Calculate the area of a square, rectangle, triangle, trapezoid, and circle.

5. PREPARING TO INSPECT THE SITE • Reasons for Inspecting the Site • Estimate Highest and Best Use • The land use that will support its highest value • Identify Key Features • Physical characteristics • Site location elements • Public and private restrictions • Identify any Legal or Physical Problems

6. LEGAL PROBLEMS • Non-Conforming Use: • Unrecorded Easement: • Encroachment

7. PHYSICAL PROBLEMS • Flood Risk • Soil or Fault Problem • Environmental Hazards

8. WHAT DATA AND TOOLS ARE NEEDED? • Sales History of Subject • Three years of history prior to date of value • Site and Neighborhood Data • Flood maps, aerial photos, easements (title report), plat map, zoning map and available utilities • Data Sources • City or County Offices • MLS, FEMA and Public Records • Tools and Equipment • Checklist, computer, measuring device, camera, map or GPS

9. SITE DESCRIPTION SECTION OF THE URAR

10. HIGHEST & BEST USE • The Uniform Standards of Professional Appraisal Practice. • Requires an analysis of Highest and Best use if intended use of the appraisal is to form an “….opinion of market value” • This is the only time USPAP requires an opinion of highest and best use.

11. 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)

12. 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

13. Figure 6.2

14. MAJOR CATEGORIES OF SITE INFORMATION • Physical Characteristics • Site Location Elements • Public and Private Restrictions

15. PHYSICAL CHARACTERISTICS OF THE SITE • Size and Shape • Topography, Soil, and Geology • Drainage and Flood Hazards • Environmental Factors • Form of Ownership • A physical and legal feature • Lot Type and Orientation • On-Site and Off-Site Improvements

16. 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

17. TOPOGRAPHY • Topography or Contour • Lot Type and Orientation • View lots • City, Ocean, Lake, Forest

18. SOIL, & GEOLOGY • Soil and Geology • Poor soil stability • Soil too dense or sandy • Permafrost • Swamps • Poor absorption • Poor septic systems

19. DRAINAGE AND FLOOD HAZARDS • Appraiser Should Note the Drainage Pattern • Flood Maps/Flood Plain

20. ENVIRONMENTAL FACTORS • Radon and Methane Gas • Hazardous Wastes • Lead Paint • Former Oil Fields • Toxic Wastes

21. FORM OF OWNERSHIP • Conventional Detached Lot • Airspace Condominium

22. LOT TYPE AND ORIENTATION • Common Types of Lots

23. 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

24. ANALYSIS OF SITE LOCATION ELEMENTS • Evaluation of the Neighborhood • Proximity to Earthquake, Flood and Environmental Hazards • Comparison with Neighborhood Properties • Utilities • Transportation

25. EVALUATION OF THE NEIGHBORHOOD • Convenience to Schools, Hospitals, Community Centers • Relationship to Employment and Shopping • Market Appeal of the Neighborhood

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

27. PROPERTY TAXES Ad Valorem Direct Assessments Property Transfer Charges Leases (In California)

28. PRIVATE RESTRICTIONS • Deed Restrictions • Association Agreements • Easements • Leases

29. AREA OF SHAPES Area = s x s Side Side Area = W x L W L b1 b1 A = b1 +b2 h h b2 b2 2 h h A= ½ h x b b b A = Π r2 r

30. SUMMARY 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.