Midwest Minute- November 20, 2023 - "Just an Old Yardsite"

In two decades of practicing real estate, I have done literally thousands of valuations on everything from houses, acreages, lake properties, commercial and industrial sites, businesses, and of course, farmland.

First and foremost, an opinion of value is exactly that, an opinion. Everybody has one!

I am certainly not always right because true market value can only be established in a transaction between a willing buyer and willing seller, but I give it my best shot, based on the information provided to me, and of course, what I see.

But there are times striving to be honest and forthright can get you into trouble, as in the case of the ten-page report I submitted the other day.

It was intended to assist an executor in her duties to provide an updated value on assets of the estate of her late father, which in this case was a vacant six-decade old mobile home on a quarter of land.?

If I see a residence with significant deferred maintenance issues, to the point it probably is uninhabitable, surrounded by the several decades of accumulated debris and buildings falling into the ground, well I will state the obvious.

One principle of appraisal is the determination of “highest and best use”, which may be different from how a property currently functions.

In this case, the land underneath the yard and its “improvements” would be worth more if used for cultivation.

The well and septic system were long past being functional. Even the shelterbelt had reached its lifespan.

The cost of remediation required, including removal of the buildings and debris, would likely equal or possibly exceed any intrinsic value the site would offer for a new residence.

Now I am a person who hates to see old yardsites turned into a field, but sometimes, it is the most appropriate thing to do, unless of course you want to leave the site as a refuge for wildlife.

Even so, old wells, septic tanks, and junk in the long grass are significant hazards, never mind the temptation for someone to start a fire.

Consequently, on the filing of my report, I was on the receiving end of a strongly worded lecture about not caring about the heritage of her family.

Well, that’s not true; I do care about people. But even as a “cold hearted Realtor” there is a professional obligation to provide a straightforward perspective.

I always try to look at a property through the eyes of a buyer. And friends, buyers really don’t care what the owner’s issues are, unless of course they can use it to their advantage in a negotiation.

Vern McClelland is an associate broker with RE/MAX of Lloydminster and an active partner in his family’s livestock operation. Comments on this article are welcome either by emailing [email protected] or calling (306) 821-0611.