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: What is Maximally Productive?- This analysis will decide which of the uses produces the highest value. This is just a brief summary of Highest and Best Use analysis. A more in-depth description of the aspects of Highest and Best Use might be for another post. How would zoning impact the value of a property? Residential : 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.