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In this test, youll examine zoning and building codes, variances, deed restrictions, building covenants, and easements to assess a range of legal uses for the subject property. Financially feasible – Would the proposed use generate enough income to pay for construction costs and make a profit?
That can be a challenge if they live in an unusual or uniquely constructed home, or if they live on a vast stretch of land with few neighbors. You also get a lot of spec homes on dirt roads with private road easements and no recorded road agreement, which can create issues.”
Welcome to the wonderful world of easements. In our example, if Sandy refuses to let Mark pass through, legal intervention may eventually be necessary to enforce his easement - Mark's right to use someone else's land in order to access his own. ” A person who has an easement does not actually own the land.
It will help you learn if there are any easements or restrictions on the land that you need to know about. The first, a construction loan, offers a one-year loan that helps get your project off the ground and into being. This is a detailed construction plan for your building.
If not, obtain one, specifically covering boundaries to learn if easements or encroachments exist.). Is there a maintenance easement, such as with waterfront properties, that could affect existing or proposed structures? (For Some questions to answer: Do you have a current survey of the property? (If Are there any deed restrictions?
New Construction Premiums: Most builders will charge a great deal more for larger lots, but in the long run, the resale market might not want to pay that same premium. If that added lot space is not usable due to zoning, easements, vernal pools or other issues, the lot is not going to hold much value.
Learn about roads, easements, and property rights: Consider spending the afternoon or night on the land that’s for sale, if possible. Learn about easement rights and road access. So, start by researching the nuances, including qualifications and minimum downpayment. Then research lenders who offer commercial real estate loans.
New Construction Premiums: Most builders will charge a great deal more for larger lots, but in the long run, the resale market might not want to pay that same premium. If that added lot space is not usable due to zoning, easements, vernal pools or other issues, the lot is not going to hold much value.
“I have a background in construction and have been a business owner in the construction industry.” ” “I have a life long time in agriculture and worked at a title company, giving me a good understanding of legal descriptions and easements.” I am doing all I can to cover all requests asap.”
New construction builds are becoming more challenging in the current real estate market. We’ll dive into how newer builders and investors can navigate the changing market with Greg Naughton, Owner of Magnets REI with 22+ years experience in construction and 10 years experience as an investor and builder. powered by Sounder.
A title search can also provide the following information: Deed Restrictions that limit the reasons for which the property can be used, what types of construction the city allows on a property, the number of vehicles allowed at the home, etc.
You should also disclose any special circumstances or contingencies that may affect the value of the property, such as repairs, renovations, easements, or encroachments.
Unusual site (size, shape, terrain, setbacks, easements, deed restrictions, etc.). An abandoned, partially finished new construction in a remote wooded area, that four appraisers had backed out on because of the large number of rattlesnakes on the property. One-of-a-kind properties (no comps). Non-conforming or illegal use.
In 2007, he started appraising conservation easements, which are specified areas of land earmarked for environmental conservation. Owners with conservation easements can claim an income tax deduction. Conservation easement appraisals are a definite risk for appraisers. They are not easy to do.
Floor Space Index or FSI (Amount of Construction Allowed on the Land). Possible Title Issues (Easements, Foreclosure). Test Soil Before, During, and After Construction (via a Soil Engineer). Careful consideration of the following points will help you make a smart land investment. Property Lines. Zoning Requirements. Title Deed.
I used Hypothetical Assumptions for new construction, of course. =. There may be unrecorded easements or other issues that the appraiser would not and could not discover during the course of the inspection. I have always been surprised that so many lender appraisers use EAs in their appraisals. When I did them prior to HVCC etc.
Home appraisals are not just for when someone is buying or selling a home for themselves however, they are also important for: New construction loans. Any existing easements or zoning issues. Renovation loan assessments. Mortgage financing and refinancing. Reviewing / appealing property tax assessment. Estate settlements.
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