Land Appraisals - Does Shape Matter?

Shape is one physical characteristic of many that is used to describe a parcel of real property.  All physical characteristics of a site are more or less important as they relate to the current use or potential use of a site.  An irregularly shaped or triangle shaped property will likely be more difficult to develop since fewer options for development will exist.

As an appraiser working at times with owners I often hear the argument that an irregular shaped property has the same utility as a typical square or rectangular shaped parcel created via the Public Lands Survey System (PLSS) or the Rectangular Survey System.  The most creative owners will argue that "the area lost due to the property's irregular shape can be used for parking or landscaping and thus there is no loss at all."

It may be true that in some instances a loss in utility and thus a loss in real property value due to irregular shape can be mitigated by using a creative building / site layout, but the fact of the matter is that the party acquiring the irregular shaped property loses development flexibility.  They are stuck often with a less than optimal layout moving and spinning potential building designs around in 3D space in an attempt to maximize building size and parking.

Shape problem can at times be dealt with by working with adjoining owners to exchange unusable areas for usable areas.  The costs of surveying and the mutual benefit of an exchange make this a less than popular method to resolve shape problems.

The limitations on development flexibility in my opinion are often the cause for market value diminution or loss, and the limitations have nothing to do with whether or not the owner of future owner can find an original way to mitigate the damage caused by irregular shape.  An owner's argument that "you don't even know what someone will build there" doesn't hold water for me.  I know that whatever they build on the site they will have to deal with that less than optimal shape!

The same arguments used for shape often apply to properties with topographic problems.  Topography can at times however be cut down or added to bringing a site to the same grade as adjoining roadways.   

For more appraisal information contact Glenn Rigdon, MA, MRICS, ASA a Las Vegas / Henderson Nevada appraiser via email or via his business website Horizon Village Appraisal (http://www.horizonvillageappraisal.com), or you can also click on “Contact Us” on the home page of this website.

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