How Much Does a Potential Condition Raise the Value of a Property?
By Ron Trzcinski, 410-935-5844
(410-935-5844 Office)
How Much Does a Potential Condition Raise the Value of a Property? Potential means that something is possible, but it is not actually that at the current time. Assume that someone has a house which sits on a two acre lot. Assume that houses similar to this house which sit on lots from about 1 to 2 acres in size are worth about $300,000 plus or minus a few thousand. Maybe in the particular area lots of about 1 acre are worth $50,000. Assume further that the property in the example has the potential to be subdivided into two lots of about 1 acre each. One lot would be where the current house sits and the other lot would be where potentially another house could be built. Because this property has the potential to be subdivided is it worth an extra $50,000 or closer to $350,000? In other w...
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