Buying a SFH in a commercial zoned lot... - Posted by Real Investor

Posted by Bert NH on August 25, 2003 at 07:58:01:

No, I don’t think it would be a waste at all. Would the average person mind living in this neighborhood? Are there any other homes nearby? Just being commercial doesn’t have to add any value if there is no demand for the land as a commercial parcel. The seller may think that because it is commercial that it has tremendous value. He might be thinking that Wal-Mart will want his property and pay dearly for it. That may be true but any large retail concern is going to want commercial neighbors to help generate foot traffic. If the area is as quiet as you say it is it could be years before the commercial zoning adds any additional value. I think the seller is dreaming.

Buying a SFH in a commercial zoned lot… - Posted by Real Investor

Posted by Real Investor on August 22, 2003 at 22:40:32:

Does a property being commercial ( on about 3) acres mean that it’s worth anything more if it’s in an area where no businesses exist and/or there is no traffic that would seem attractive for one?
It’s a really trashed SFH with 2.5 acres selling real high because it’s considered “commercial.” Can someone explain if it means anything in $ terms?
My goal would be to do a rehab, ad a bathroom and extension, and try to flip it.
Your help is appreciated!
Thanks,

Re: Buying a SFH in a commercial zoned lot… - Posted by Don Dion

Posted by Don Dion on August 23, 2003 at 14:36:45:

I hope no one ask’s about the real estate taxes and insurance when your trying to sell this one. The taxes will be based on it’s use not what it looks like. Since it is commercial zoned it will be taxed as commercial. Same should come into play when you try and insure the property. If it is zoned commercial the value is in the land not the home throw the house in the trash and resell the land for your profit.

Re: Buying a SFH in a commercial zoned lot… - Posted by Bert NH

Posted by Bert NH on August 24, 2003 at 08:52:00:

I disagree. At least where I am, all property types are taxed at the same tax rate. What differs is the assessed value. If its commercial it may have a higher land value than a residence. The assessed value should have some corrolation to market value. Sounds like this property wouldn’t have a much higher value just because of its current zoning. If it were in the center of an “active” commercial area maybe it would.
Why would trashing the house and reselling the land be the highest and best use if theres is no commercial demand for the neighboring parcels which are undeveloped and theres very little traffic count?

Re: Buying a SFH in a commercial zoned lot… - Posted by Real Investor

Posted by Real Investor on August 24, 2003 at 21:38:55:

This is kind of what I was wondering. Any clarification would be appreciated. Would a residential rehab on such a property be a waste since it’s zoned commercial? And, does the commercial aspect really add much value to the deal?