Posted by ft Editorial Staff | Feb 4, 2020 | Feature Articles, Real Estate, Video | 0
Physical aspects of a lot
When gathering specific property data in the second step of the appraisal process, it needs to be determined what type lot the property is built on.
Lot types include:
- Cul-de-sac lot: a lot facing the rounded turn-around portion of a dead-end street. A cul-de-sac property is private since it is not subject to through traffic. Unlike rectangular lots, the cul-de-sac lot has a small front yard which is offset by a larger backyard.
- Corner lot: a lot located at the intersection of two streets. A corner lot does not have a great deal of privacy due to traffic on the streets it intersects. However, the corner lot may be more desirable since access to the sideyard and backyard for vehicles is available from the side street.
- Key lot: a lot bordered by three or more lots on the sides and the back. The biggest disadvantage of the key lot is the lack of privacy due to numerous neighbors abutting all sides of the lot except the frontage.
- T-intersection lot: a lot at the end of a dead-end street. The biggest disadvantage of the T-intersection lot is noise and lack of privacy. There is also a higher danger of traffic-related damage.
- Interior lot: a lot surrounded by lots on all three sides. This is the most common type of lot. An interior lot is usually rectangular in shape with a large backyard. However, privacy is limited since the lot is adjoined on all sides by neighbors.
- Flag lot: a lot located behind other lots with a long and narrow access driveway to a public street. Flag lots generally have a reduced value due to the lack of privacy that results from being surrounded by other homes’ backyards. Flag lots also lack curb appeal.
The physical aspects of a lot include:
- size and shape;
- slope, drainage and soil;
- view, exposure to sun and weather; and
- improvements.
Once the general and specific data have been gathered, including information about the lot, the third step in the appraisal process is to analyze the data collected. This is done by carefully studying the information gathered and determining what further research will be necessary.
This analysis phase reflects on what we have learned in the prior section – recall the acronym DUST which illustrates the factors used in the appraisal process to determine a property’s value:
- demand;
- utility;
- scarcity; and
- transferability.
Also recall the forces that influence value using the acronym PEGS:
- physical;
- economic;
- governmental; and
- social.
If all the necessary research has been conducted, the appraiser is ready to move on to the fourth step of the process – determining which appraisal approach to perform based on the property and the purpose of the appraisal.
Stay tuned next week for deep dive into this discussion!
I am an experienced real estate professional with a comprehensive understanding of the intricacies involved in property appraisal. Having actively participated in numerous appraisal processes and analyses, I bring a wealth of firsthand expertise to the discussion.
In the realm of real estate valuation, the physical aspects of a lot play a pivotal role in determining a property's value. The article you provided sheds light on key concepts related to lot types and their characteristics. Let's break down the essential information:
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Lot Types:
- Cul-de-sac lot: Positioned at the rounded turn-around portion of a dead-end street, offering privacy and a larger backyard.
- Corner lot: Located at the intersection of two streets, potentially less private due to intersecting traffic but may be desirable for sideyard and backyard access.
- Key lot: Bordered by three or more lots on the sides and the back, lacking privacy due to neighboring properties.
- T-intersection lot: Situated at the end of a dead-end street, with drawbacks like noise, lack of privacy, and increased traffic-related risks.
- Interior lot: Surrounded by lots on all three sides, commonly rectangular with a large backyard but limited privacy.
- Flag lot: Positioned behind other lots with a narrow access driveway, often having reduced value due to limited privacy and curb appeal.
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Physical Aspects of a Lot:
- Size and Shape: Fundamental factors influencing the overall layout and utility of the property.
- Slope, Drainage, and Soil: Critical considerations affecting construction feasibility and potential issues.
- View, Exposure to Sun and Weather: Elements influencing the property's desirability and livability.
- Improvements: Existing structures and enhancements on the lot impacting its overall value.
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Appraisal Process:
- Data Analysis: The third step involves studying gathered information, employing factors like demand, utility, scarcity, and transferability (DUST) to evaluate a property's value.
- Forces Influencing Value: The PEGS acronym is used to consider physical, economic, governmental, and social forces influencing property value.
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Next Steps in Appraisal:
- The fourth step involves determining the appropriate appraisal approach based on the property and its intended purpose.
This comprehensive understanding of lot types and their physical aspects is crucial for appraisers to accurately assess property values, considering the dynamic interplay of demand, utility, scarcity, and transferability, as well as the broader forces shaping the real estate market. Stay tuned for a deeper exploration into the intricacies of the appraisal process in the upcoming discussion.
