24VAC30-41-440: Highest and best use other than residential

When the acquired dwelling is located on a site where the fair market value is established on a use higher and better than residential, the purchase supplement maximum amount will be determined by deducting the acquisition price of the acquired dwelling plus the acquisition price of that portion of the acquired land which represents a tract typical in size for the area from the probable selling price of the most comparable listing. The following calculation shows how this amount is determined:

Example

Acquired Dwelling on Commercial Zoned Site

The acquired house (whole take) is on a five-acre site zoned commercial. The typical residential lot in the area is one acre. The land is appraised at $50,000/acre and the dwelling is valued at $10,000 as an interim use.

A comparable house on a residentially zoned lot is available for $70,000 (after adjustment). The maximum purchase supplement amount is determined below:

Displacement property value

$100,000

Comparable property

$70,000

LESS: Value of the house acquired on one acre

$60,000

Maximum Purchase Supplement Amount

$10,000