Title: The Impact of Zoning on Property Values
Headings: The Impact of Zoning on Property Values
The Impact of Zoning on Property Values
Shannon Slater Follow
MNAA, Certified Residential Real Estate Appraiser at DW Slater Company
What is Zoning?
What is the Highest and Best Use Analysis?
How would zoning impact the value of a property?
Shannon Slater
MNAA, Certified Residential Real Estate Appraiser at DW Slater Company

Content: Most of the residential properties that we appraise are typically zoned single family residential and are a legal permitted use.. There are some occasions where a property may have a legal non-conforming use (grandfathered use) such as a single family residence that is now zoned Multi-Family but it is grandfathered. The issues that come up with a grandfathered use are that you must check with the city to see if the grandfathered use would be allowed if the property was completely destroyed, if it was vacant for a certain length of time, or if it sold. Each city is different. We recently appraised a property that was a single family residence but it was located in a Commercial Zoning District. We inquired with the city and confirmed that the Residential use was a grandfathered use and would be continued even if the home was completely destroyed. The area consisted of older residential homes. There were no commercial properties in the neighborhood. In this situation the city had wanted this to become a commercial district but currently it was still residential homes in hopes of transitioning into a commercial district. The zoning of a property may have restrictions such as set backs from the front, sides and rear. There may be limits to number of garages allowed or a minimum garage requirement.