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: Another example might be the density requirement of zoning. If there are two different large tracks of land, one zoned for SFR - minimum lot size 7,500 sf and the other track of land is zoned SFR- minimum lot size 1 acre. A developer is wanting to put in a residential development. Which track of land would be more valuable? A feasibility analysis would need to be performed to see if the smaller lots would produce a higher return or if developing on the larger lots would produce a higher return. You would be surprised as sometimes the larger lots bring a greater return based on the value and cost of construction. Sometimes the smaller lots would produce a greater return. It would depend on the market that the land was located on and the cost of construction. These are just a few examples of how zoning can impact the value of a property or how important it is to know the zoning and what is allowed. There are definitely more examples of zoning impacting commercial properties but there are a few occasions where zoning might be of concern to residential properties as well.