Chapter 6
PROPERTY INSPECTION AND ANALYSIS: THE SITE
CHAPTER TERMS AND CONCEPTS
Access
Excess depth
Assemblage
Flag lot
Association agreement
Frontage
Building footprint
Gross area
Condominium
Highest and best use
Corner lot
Interim use
Coverage ratio
Interior lot
Cul-de-sac lot
Key lot
Depth
Location
Lot shape
2
CHAPTER TERMS AND CONCEPTS
Lot type
Private restrictions
Net area
Public restrictions
Off-site improvements
Right of access
On-site improvements
T-intersection lot
Orientation
Topography
Planned Unit Development
Townhouse
(PUD)
Transportation
Plottage
Useful area
Plottage value
Utilities
3
LEARNING OUTCOMES
1. List three reasons
inspections.
for
making
site
2. List the four criteria for highest and best
use.
3. List the three main categories of site
information.
4. Calculate the area of a square, rectangle,
triangle, trapezoid, and circle.
PREPARING TO INSPECT THE SITE
Reasons for Inspecting the Site
 Estimate Highest and Best Use
o The
land use that will support its highest value
 Identify Key Features
o Physical
characteristics
o Site location elements
o Public and private restrictions
 Identify any Legal or Physical Problems
LEGAL PROBLEMS
• Non-Conforming Use:
• Unrecorded Easement:
• Encroachment
PHYSICAL PROBLEMS
 Flood Risk
 Soil or Fault Problem
 Environmental Hazards
WHAT DATA AND TOOLS ARE NEEDED?
• Sales History of Subject
o Three
years of history prior to date of value
• Site and Neighborhood Data
o Flood
maps, aerial photos, easements (title report),
plat map, zoning map and available utilities
• Data Sources
o City
or County Offices
o MLS, FEMA and Public Records
• Tools and Equipment
o Checklist,
or GPS
computer, measuring device, camera, map
SITE DESCRIPTION SECTION OF THE URAR
9
HIGHEST & BEST USE
• The Uniform Standards of Professional
Appraisal Practice.
o Requires
an analysis of Highest and Best use if
intended use of the appraisal is to form an
“….opinion of market value”
o This is the only time USPAP requires an opinion of
highest and best use.
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)
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
Figure 6.2
MAJOR CATEGORIES OF SITE INFORMATION
1. Physical Characteristics
2. Site Location Elements
3. Public and Private Restrictions
PHYSICAL CHARACTERISTICS OF THE SITE
1.
2.
3.
4.
5.
Size and Shape
Topography, Soil, and Geology
Drainage and Flood Hazards
Environmental Factors
Form of Ownership
a) A physical and legal feature
6. Lot Type and Orientation
7. On-Site and Off-Site Improvements
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
TOPOGRAPHY
 Topography or Contour

Lot Type and Orientation

View lots

City, Ocean, Lake, Forest
SOIL, & GEOLOGY
Soil and Geology
 Poor soil stability
 Soil too dense or sandy
 Permafrost
 Swamps
 Poor absorption
o
Poor septic systems
DRAINAGE AND FLOOD HAZARDS
• Appraiser Should Note the Drainage
Pattern
• Flood Maps/Flood Plain
ENVIRONMENTAL FACTORS
•
•
•
•
•
Radon and Methane Gas
Hazardous Wastes
Lead Paint
Former Oil Fields
Toxic Wastes
FORM OF OWNERSHIP
Conventional Detached Lot
Airspace Condominium
LOT TYPE AND ORIENTATION
Common Types of Lots
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
ANALYSIS OF SITE LOCATION ELEMENTS
• Evaluation of the Neighborhood
• Proximity to Earthquake, Flood and
Environmental Hazards
• Comparison with Neighborhood
Properties
• Utilities
• Transportation
EVALUATION OF THE NEIGHBORHOOD
• Convenience to Schools, Hospitals,
Community Centers
• Relationship to Employment and Shopping
• Market Appeal of the Neighborhood
PUBLIC RESTRICTIONS
•
•
•
•
•
•
•
Regional and Master Plans
Zoning Regulations
Subdivision Requirements
Building and Safety Regulations
Environmental Protection Laws
Federal Flood Zones
Geological Hazard Zones
PROPERTY TAXES
Ad Valorem
Direct Assessments
Property Transfer Charges
Leases (In California)
PRIVATE RESTRICTIONS
• Deed Restrictions
• Association Agreements
• Easements
• Leases
AREA OF SHAPES
Side
Side
Area = s x s
Area = W x L
W
L
b1
h
b2
h
h
h
b
b1
b2
b
r
A = b1 +b2
2
A= ½ h x b
A = Π r2
29
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.