How do you assess the value of a ravine lot if the ravine falls in the area of the lot boundary?

Question

Anne Lok, Toronto Modern Real Estate (Berkshire Hathaway HomeServices Toronto Realty)

Answers Subscribe to Answers

Sort

Rainmaker
3,071,039

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Haven Express @ Keller Williams Arizona Realty

Count only the useable portion I believe

Oct 06, 2015 01:44 AM

Upvote

1

Anne Lok

Toronto, ON

Rainmaker
1,466,057

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Anne Lok It would depend how large the lot is and where the ravine is located. I sold a parcel that has a storm water management system on it with a dry pond taking up the whole property. The buyer found a way to build over the pond.

In your case the value would depend on the useable portion of the lot.

Oct 06, 2015 12:02 AM

Upvote

1

Anne Lok

Toronto, ON

Rainmaker
1,709,515

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

I think of it the same as flood zone on smaller properties. Unusable.

Oct 05, 2015 10:28 PM

Upvote

1

Anne Lok

Toronto, ON

Rainmaker
4,433,865

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

You should comapre with similar properties.

Oct 05, 2015 10:27 PM

Upvote

1

Anne Lok

Toronto, ON

Rainmaker
921,148

Annette Lawrence , Palm Harbor, FL 727-420-4041

ReMax Realtec Group - Palm Harbor, FL

Making FLORIDA Real Estate EZ

Quite literally as a 'falling asset.'

On a 70 acre property, the issue is not as critical, however on a 1/4 lot, the outcome can be catastrophic.

To establish a point of argument, refer to the land unit value from your property appraisers website for several ravine properties and of the properties across the street. That ratio, conditioned by your knowledge of the local market and existing data and trends should allow you to present a defensible lowest value. Of course that is not the value for which that real estate will sell. Be smart about setting expectations.

Oct 05, 2015 10:23 PM

Upvote

1

Anne Lok

Toronto, ON

Rainmaker
205,154

KAREN SANCHEZ

Hamilton Landon Real Estate - Apple Valley, CA

...Marketing your home like no one else will.

Anne, you have to find similar properties. Compare apples to apples.

Oct 05, 2015 09:49 PM

Upvote

1

Anne Lok

Toronto, ON

Rainmaker
778,856

The Woodland Team of Texas

The Woodland Companies - Austin, TX

Land Specialists

I wouldnt know.

Apr 13, 2019 11:36 PM

Upvote

Ambassador
5,965,499

Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Hope you found a good answer for this one.

Oct 11, 2018 07:42 PM

Upvote

Back to Top

Anne Lok It would depend how large the lot is and where the ravine is located. I sold a parcel that has a storm water management system on it with a dry pond taking up the whole property. The buyer found a way to build over the pond.

In your case the value would depend on the useable portion of the lot.
I think of it the same as flood zone on smaller properties. Unusable.
Quite literally as a 'falling asset.'

On a 70 acre property, the issue is not as critical, however on a 1/4 lot, the outcome can be catastrophic.

To establish a point of argument, refer to the land unit value from your property appraisers website for several ravine properties and of the properties across the street. That ratio, conditioned by your knowledge of the local market and existing data and trends should allow you to present a defensible lowest value. Of course that is not the value for which that real estate will sell. Be smart about setting expectations.
Anne, you have to find similar properties. Compare apples to apples.