Highway property zoned residential but with commercial value

[BirdieBelle]

Originally Posted by VonnieD

I am the current land owner. I got the appraisal for estate valuation purposes when the land passed to me.

Thanks, sounds like good advice.

Ok, that makes a difference. So you are not trying to buy and develop the property; you are thinking of selling.

Then I would take a look at the area as a whole, its economic health and whether it is a growth area. If it's on the edge of town, is the town growing in that direction? If developers are putting in subdivisions like crazy, then you would want to leave it residential so they don't have to go through the rezoning process.

If it's in a commercial area, you only need to say it has "commercial potential" in the marketing materials if that is indeed the case. I have seen developers pursue rezonings with a contingent offer on the table. It does happen.

You could talk to the elected representative in that area (city council/county commission, etc - whatever it's called) to get their take on it. Our city reps are very responsive, and since they make the rezoning decisions here, I would ask their opinion on the potential of rezoning to have an idea if it's even possible.

Rezoning residential to commercial is VERY difficult in my area because it's an upscale suburb and there are a ton on NIMBYs here.

It would help to know what town/ area you are talking about.

[North Beach Person]

Originally Posted by thebigW

Actually, part of the appraisal process is determining "highest and best use".

It is to an extent. But if it's currently zoned residential then that's what the appraisal would be based on. If that wasn't the case then every single appraisal in residential or agricultural would be done based on turning it all into 20 story condo buildings.

If his property is zoned for both SFH and multifamily/TH then the highest best use would be the latter. It's not going to have an appraisal done, except for speculation and might could be done, outside the current zoning.

[VonnieD]

Thanks all!

Does anyone have any advice on the other part of my original question:
"Any ideas on how to assess commercial realtors? Also, are some more global than others?"

[jackalope48]

Originally Posted by VonnieD

Thanks all!

Does anyone have any advice on the other part of my original question:
"Any ideas on how to assess commercial realtors? Also, are some more global than others?"

Ask the planning staff who is active in deals, they may or may not share info. Best thing is to drive around and see who has listings and then call them and ask them about it. Might ask them how they'd market it and to whom. Loopnet tends to be the go to listing site so you can look on there for who has listings locally.

Commercial isn't nearly as nationalized as residential especially in smaller markets. My experience in a mid sized market is the nationals are basically a franchise bought by someone without their own established book of business. Anyone coming into a market is going to look at loopnet and call listings they are interested in.

You also want to think about and talk to brokers about whether it's better to market it as one piece or go ahead and subdivide it up. Asking brokers questions like that will give you a sense of who is competent and who you will work well with.

Call your appraiser and ask them on leads on brokers as well. They'll know all of them.

[VonnieD]

Thank you Jackalope48!