Excess Land is land available over and above what is needed to support the improvements
|•||The excess land makes the site larger than similar properties|
|•||The excess land is available for separate use|
|•||The excess land is not needed for the primary improvement|
On an unimproved site, land that is larger than needed to support the site's highest and best use is excess land. On an improved site, land that is larger than needed to support the existing improvement is excess land. Excess land must be available for a separate use. If the extra land cannot be sold off, it is called surplus land.
Excess Land is appraised using the sales comparison approach or, if applicable, the income approach.
A parcel is 1 acre in a subdivision in which the typical lot is ½ acre. The house is situated in such a way that the parcel can be divided and ½ acre can be used for another house. This is excess land.
Excess land may be appraised using the sales comparison approach to value or, if applicable, the income approach to value.
Excess land is closely related to Surplus Land with one major difference. Surplus land is not available for separate use.