Presentation on theme: "Land or Site Description Wayne Foss, MBA, MAI Wayne Foss Appraisals, Inc."— Presentation transcript:
Land or Site Description Wayne Foss, MBA, MAI Wayne Foss Appraisals, Inc.
2 Site Analysis Before the site can be valued, its features and characteristics must be known l Facts and features relative to market standards l What does it bring to the market? l How well will it compete?
3 Definitions Land: The earth’s surface, both land and water, and anything that is attached to it whether by the course of nature or human hands. Site: Land that is improved so that it is ready to be used for a specific purpose. Site Improvements: Improvements on and off a site that make it suitable for its intended use or development. On-site improvements include grading, landscaping, paving, and utility hookups. Off-site improvements include streets, curbs, sidewalks, drains and connecting utility lines.
4 Definitions Land or site description: A compilation of detailed factual data, including a legal description, other title and recorded data, and information on the pertinent physical characteristics of a parcel of land or a site. Land or site analysis: A careful study of factual data relating to the neighborhood characteristics that create, enhance, or detract from the utility and marketability of the land or site as compared with competing, comparable land or sites.
5 Purpose of Land or Site Description l Provides a description of the property being appraised l Basis for analyzing comparable sales l Basis for allocation of values to land and improvements l provides the foundation for determining the property’s highest and best use
6 Legal Descriptions l Metes and Bounds System l Rectangular Survey System (Government Survey System) l Geodetic Survey Program l Lot and Block System l Tax Parcels
7 Legal Descriptions l Metes and Bounds System » Oldest system » Metes and bounds refers to the direction and distances between the bounds
8 Metes and Bounds System
9 Legal Descriptions l Rectangular Survey System (Government Survey System) » Principal method of land description for most of the land west of the Ohio and Mississippi Rivers. –Townships are 36 square miles –Each township contains 36 sections –Each section is 1 square mile with 640 acres –Each section can be broken down into halves, quarters, etc.
10 Rectangular Survey System (Government Survey System)
11 Legal Descriptions l Geodetic Survey Program » Topographic Maps –These maps include contour lines, bodies of water, forested areas, manufactured features such as buildings, roads, bridges and power lines
12 Geodetic Survey Program
13 Legal Descriptions l Lot and Block System » Established when developers subdivided land in the government survey system. » Individual numbers were assigned to individual sites within the blocks » Files with local government, usually the county where the subdivision is located
14 Lot and Block System
15 Legal Descriptions l Tax Parcels » Many taxing authorities use a variation of the lot and block system to identify parcels for taxation purposes. » Not usually nor acceptable as a legal description.
16 Tax Parcels
17 Factors in Site Analysis l Legal » Ownership information –Legal owner –Type of Ownership –Type of Property Rights Owned –Limitations (easements, restrictions) –Private deed restrictions –Chain of Title
18 Factors in Site Analysis l Zoning and land use data » General Use –those uses that are legally permitted » Density of Use –how many units are permitted? » Specific Development Requirements –Setback and building height restrictions –Lot coverage ratios –parking and sign requirements » Flood and Earthquake Hazard Zones » Procedures for variances and zoning changes
19 Factors in Site Analysis l Assessment and Tax Information » Assessed value of the subject » Tax rates in the jurisdiction » Taxation levels compared to other areas » Future trends in tax rates » Special Assessments
20 Factors in Site Analysis l Physical » Size » Shape » Frontage (Width) » Depth » Corner Influence or Cul-de-sac location » Topography –Slope, elevation, soil and subsoil conditions –Utilities and Site improvements
21 Factors in Site Analysis l Economic » Plottage –The increment of value created when two or more sites are combined to produce greater utility » Excess Land –land not needed to serve or support the existing use » Surplus Land –land not needed to serve or support the highest and best use, but not independently useable.
22 Factors in Site Analysis l Units of Comparison » Residential –Price per acre, per square foot, per unit » Commercial –Price per square foot, per front foot » Industrial –Price per acre, per square foot
23 Factors in Site Analysis l Location » Residential –convenient transportation linkages to employment, shopping and other services » Commercial –visibility, easy access for customers and deliveries, parking, traffic patterns and counts » Industrial –linkages for employees, raw materials and finished products, utilities
24 Factors in Site Analysis l Environmental » Climate » Ground water and drainage » Quality of air and water » Proximity to natural hazards –flooding, earthquakes, and landslides » Presence of wildlife habitats or endangered species » Restrictions due to wetlands or coasts » Orientation to sun or wind
25 Factors in Site Analysis l Agricultural » Soil type and composition » Drainage and irrigation » Climate (function of growing season) » Potential Crops » Environmental controls » Other considerations –minerals, streams, lakes, recreational land uses –special tax considerations
26 Sources of Data l Public Records » Deeds and Mortgages » Plat Books (Maps) » Assessor’s records » City and County –Building, Planning and Engineers offices » County and State Department of Transportation
27 Sources of Data l Private Sources » Title Companies –Title report » Research organizations –Flood maps, demographic analysis » Universities –Special studies, economic reports
28 Sources of Data l Maps » Zoning and General Plan Maps » Tax Plat Maps » Survey Maps » Geodetic survey maps –US Geologic Survey topographic maps » Flood and Earthquake » Soils » Oil and Gas
29 So That’s Land or Site Description Wayne Foss, MBA, MAI, Fullerton, CA USA Phone: (714) Fax: (714)