Real Property Appraisals/Propert Value Drop from Wendy's
Good evening Sir,
I live in a residential section of Philadelphia and recently an old mansion was torn down a block away from my house that was zoned for mixed use. It was occupied by a law firm on the first floor and rented as apartments on the top floors. There is a plan in place to violate the current zoning and put a Wendy's on the lot. Can you please let me know what you think this will do to my property value and point me in the right direction to find historical data on a situation like this?
I apologize for not answering this in a more timely manner. Somehow I didn't see your question get posted in my Inbox.
I'm not sure how these developers are going to "violate" current zoning. Assuming the current zoning would not allow a Wendy's, they have to apply for a zoning change with whatever City in which you live. Then, they have to go through City hearings. For this they have to post notices with every owner within the proscribed distance from this site so that the nearby residents get a chance to voice their opposition.
Depending upon the laws in your State, the developer should be required to have an Environmental Impact Report prepared which would analyze the impact upon the surrounding properties. If one has been prepared, you need to review it and understand what it says
You need to immediately go to the City where you live and find out what is going on with this property. You need to verify yourself what the zoning is in the block where you live and in the block where this property is. You might find that the zoning in the block where this Wendy's is going to be built allows this to be built, even though it is only a block away
If there are hearings scheduled, you need to get your neighbors together who are opposed to this and everyone needs to go to all of the hearings from now on where this development will be discussed. One technique that developers and City's use is to have many, many hearings until people opposed to developments wear out and stop coming. Then, they ram through the approval.
With respect to your question about any affect upon your property value, in appraiser jargon, a "stigma" to your property, you will have to have access to extensive market data. You would have to locate other neighborhoods in which a commercial property was developed and analyze whether there was any diminution in property value after the commercial development was completed.
For this kind of analysis, you would need to hire a very experienced appraiser. The appraiser would have access to the data that would be necessary to measure whether any stigma exists from proximity to a commercial property.
If this development is getting rammed through by the developer and City, you and your neighbors who are opposed to the development may have to hire an attorney to represent you and file an action to stop the development until proper procedures are exercised.
Good luck to you!
John C. Carlson
CA Certified General Real Estate Appraiser
Victorville and Diamond Bar, CA