Posted by Ed Garcia on July 13, 2002 at 10:56:49:
Gene,
There is no question that ZONING affects the value of the property. It can also affect the financing. Once the property has been zoned commercial it usually puts a higher value on the property.
The financing is affected because the property is no longer designated residential, but commercial, so now a residential lender will not as a rule lend on the property once it has been rezoned. You can still live in the house, because it’s grand-fathered, however if you should choose to tear the house down, or it should catch on fire and burn down, it can never be rebuilt as a residential home.
What I’ve just told you is the rule of thumb. It can vary from town to city and county to county. Some properties that are located in an unincorporated area may not be affected.
Ed Garcia