M ICHIGAN LAND OPTIONS
Pr epar ed by:
Th e KANDOO Real Est at e Team 5425 N Or acle Rd #135 Tu cson AZ 85704 520.481.5505
History and Options We will start witrh the history of the property. Then we will look at three options.
HISTORY 12 acres of vacant land. Originally appraised for $165,000 in April, 2016. Kandoo Team noticed error on the appraisal - Appraiser used small improved lots as comps - Small improved lots are more valuable - Caused initial appraisal to be over valued. Review appraisal ordered March, 2018. Approx $115,000. Listed at $165K to test market on October 2018 - 217 days on market. - Feedback confirmed initial appraisal was over valued.
POINT TO CONSIDER: 1. Current zoning requires minimum lot size to be 3.3 acres. 2. This lot could be split into maximum of three lots 3. One of the beneficiaries has an interest in owning a portion of this land if possible. 4. Tucson Water line runs along the north property line. 5. TRICO Electric is more than 500' away.
OPTION 1 Sell t he 12 Acres "As Is"
12 acres For Sale $100,000 - $120,000
PROS AND CONS
Fast and easy. No investment required
May not generate maximum value for estate. Does not allow the beneficiary to own a portion.
OPTION 2 Divide t he propert y int o 3 sm aller lot s (4 acres). Bring in power t o each lot (wat er is already t here).
4 acres
4 acres
4 acres
For Sale
For Sale
For Sale
$50,000
$50,000
$50,000
PROS AND CONS
Relatively easy and usually smaller improved lots sell for more money. Allows an option for beneficiary to own a portion of the property.
Because power is far away and expensive to bring in, it negates the extra profit smaller lots normally provide. After paying for cost of survey, minor land division, and utilities ($40,000) the estate would net approximately the same as option 1
OPTION 3 Rezone propert y t o "GR1". Survey propert y int o (12) 1 acre lot s. Legally you can sell five parcels wit hout going t hrough full subdivision process.
$50K
$65K
$50K
$65K
$50K
PROS AND CONS Maximum value for estate. Gross $280,000 Allows beneficiary option to own portion of the property.
Expensive, labor intensive and time consuming. Cost for survey, minor land division, road and utilities is abouit $65,000. No guarantees we can get assured water supply for 12 lots. Need to apply for that.
RECOM M ENDATION Con sider opt ion #1
12 acres For Sale $110,000
or opt ion #3
$50K $50K
$65K
Cost for survey, minor land division, road and utilities is about $65,000. Gross $280,000
$50K
$65K
Opt ion #2 does n ot m ake econ om ic sen se.
THOUGHTS?
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