Understanding the Basics: What Is a Variance in Real Estate?
Are you interested in buying or investing in real estate? If so, it's essential to understand the term variance. A variance is a commonly used term in real estate that refers to getting permission from local authorities to deviate from the existing zoning laws.
Have you ever looked at a property and wondered why it looks different from other properties in the area? Chances are that it got a variance from the city. A variance allows the property owner to modify the building plans or use of the land in ways that aren't allowed under the current zoning laws.
If you're a real estate investor or buyer, knowing the ins and outs of variances is critical to identify potential opportunities for your investment. A variance can add significant value to a property if used correctly.
The process of getting a variance isn't easy or guaranteed. Property owners must make an application, attend hearings and present their cases to get approval. According to the National Association of Home Builders, only 20-30% of variance requests are approved each year, making it a challenging process.
However, it's still worth giving a shot for several reasons. For instance, property owners can apply for a variance to increase density, build new structures, or change the use of the land.
A variance can also be helpful for residential properties. Say you have a small lot with unique shape, a variance can enable you to build a smaller house while still complying with zoning requirements. This could make the property more attractive for buyers as it offers more flexibility.
Here's an important fact you should know about variance when investing in real estate. Properties with approved variances typically sell faster and at a higher price than comparable properties without variances. Investors should look for properties with approved variance to add value to their portfolio.
Getting a variance isn't the only option for altering the use of the property or changing the building plans. A property owner can also request a conditional use permit (CUP). The local government issues a CUP to allow the owner to use their land in ways that aren't usually allowed under the zoning law.
The difference between a variance and a CUP is that variances change zoning laws, whereas a CUP doesn't. A CUP merely grants permission for the property to be used in specific ways.
Before you invest in real estate or apply for a variance, do your research. Some cities or neighborhoods have stricter zoning laws than others, making it harder to get a variance. However, this shouldn't discourage you; there are ways around zoning restrictions.
In conclusion, a variance is an essential concept in real estate, especially for investors and buyers. Getting a variance isn't easy, but it's worth trying, as it can add significant value to your investment. Research your area's zoning laws and consider applying for a variance if you're planning to invest or sell your property.
Don't let zoning laws hold back your potential profits. Seek professional help from real estate agents or attorneys who have experience dealing with variances to get valuable advice on how you can overcome the procedure.
"What Is A Variance In Real Estate" ~ bbaz
A variance in real estate is a permission given by the local government or zoning board of appeals to the property owner, allowing him to deviate from the existing zoning laws and regulations. A variance can be granted for various reasons such as building height, setbacks, lot size, parking spaces, or any other specific requirement imposed by the zoning laws. The variance allows the property owner to modify the existing property, which otherwise would not be possible.
The Purpose of a Variance
The primary objective of the variance is to assist property owners who are unable to follow the zoning laws due to certain conditions that are unique to their properties. This could be anything from the shape and size of the existing property, to environmental features like wetlands or streams that make the property unsuitable for development under the existing zoning laws. The variance provides an opportunity for the owner to modify the property, thereby increasing its functionality and value, while at the same time avoiding legal issues.
Types of Variance
There are two types of variances: use variance and area variance. Use variance is granted when the landowner wants to use the land for a purpose that is not allowed under the current zoning laws. For instance, if the zoning regulation states that the land should only be used for residential purposes, but the owner wishes to use it for commercial purposes, he can request for a use variance to allow him to do so.
On the other hand, area variance is granted when the landowner wants to deviate from the setback or the height requirements stated in the zoning laws. For example, if zoning laws state that the building should have a minimum setback of 25 feet from the street, but the owner wants to put up a building 20 feet away from the street, he can request for an area variance to allow him to do so.
The Process of Obtaining a Variance
To obtain a variance, the property owner must submit an application to the zoning board of appeals in his city or municipality. The application should contain detailed information about the proposal such as the nature of the requested variance, the reasons behind it, and a site plan that shows the proposed modifications to the property.
The board will then schedule a public hearing where the property owner is required to present his proposal along with any supporting documentation. Interested parties, including neighbors and other stakeholders, are given the opportunity to speak for or against the proposed variance. The zoning board then makes its decision, which may take a few weeks or months depending on the complexity of the request.
Factors Considered by the Zoning Board in Granting a Variance
When making a decision on whether to grant a variance, the zoning board considers several factors, including but not limited to the following:
The hardship the property owner would suffer if the variance is not granted
The zoning board considers whether there are any unique features of the property that make it impossible for the owner to comply with the existing zoning laws. For example, if the property is an odd-shaped lot, complying with the setback requirements may be difficult, which could qualify as a hardship.
The impact the variance would have on the surrounding community
The zoning board considers the potential impact that the proposed variance would have on the neighborhood. For example, if the variance would cause unnecessary traffic or noise, or if the use of the property would be incompatible with the surrounding area, they may reject the request for a variance.
Whether the variance would uphold the spirit of the zoning law or ordinance
The zoning board considers whether the proposed variance would be consistent with the goals and objectives of the zoning laws or ordinances, and whether it would serve the best interests of the community at large.
The Importance of a Variance
A variance is of great importance to both property owners and local municipalities. For property owners, a variance provides an opportunity to modify their properties in ways that increase their usefulness and value, while meeting their unique needs. For municipalities, the variance process ensures that zoning laws are flexible enough to accommodate the unique features of individual properties, while maintaining the overall integrity of the zoning codes.
Conclusion
In conclusion, a variance is an essential tool for property owners who wish to alter their properties for specific purposes that deviate from the existing zoning laws. The variance process allows for modifications of the properties while ensuring that the zoning laws are maintained and respected. Understanding the logistics behind applying for and obtaining a variance can help property owners realize their development goals and avoid legal issues.
What Is A Variance In Real Estate?
Introduction
The term variance in real estate refers to a request by a property owner or developer to deviate from the zoning regulations of a municipality. The purpose of filing for a variance is to obtain permission to use or develop a property in a way that is not allowed under the current zoning regulations. In this article, we will compare the different types of variances, the process of obtaining a variance, and the reasons why someone would need a variance.Types of Variances
There are two types of variances: area/variance and use/variance. Area/variance deals with meeting the local zoning requirements on the property, specifically related to the size and shape of the lot. Use/variance is used when a property owner wants to use their property in a way that is not permitted under the current zoning ordinance.Process of Obtaining a Variance
The process of obtaining a variance involves several steps. It begins with an application to the municipal zoning board, accompanied by a fee. The application must include specific details on what areas the property owner wishes to vary from the existing zoning ordinances. The zoning board will then notify all property owners within a certain distance of the applicant's property, allowing them to voice their opinion if they feel it will harm their interests. The board then conducts a public hearing where they interview the property owner and other interested parties. Afterward, the board will make a decision on either granting or denying the applicant's request.Reasons for Needing a Variance
There are several reasons why a property owner may need to file for a variance. A common reason is when the property does not meet the standard size or configuration required by the zoning regulations. Another reason is when a property owner wants to use their property in a way that is not specifically permitted under current zoning. For instance, if somebody wanted to add a shed or an outdoor swimming pool in their backyard, a variance may be required since it may result in increased noise or traffic.Comparison of Area Variances and Use Variance
The main difference between area/variance and use/variance is the type of deviation from the zoning ordinances. With an area/variance, the variation requested by the property owner has to do with the physical aspects of their property. Use/variances, however, is where the property owner wants to use their property in a way that differs from the zoning ordinance. A table comparison between area/variance and use/variance:| Category | Area/Variance | Use/Variance |
|---|---|---|
| Variation type | Physical aspects of the property | Intended use of the property |
| Examples of variances | Request to build a fence with an excessive height or size | Create a home-based business in a residential zone |
| Zoning ordinance | Evaluates the need for a variance based on the existing zoning regulations and policies | The zoning board evaluates the potential impact of the intended use on the surrounding area |
The Benefits of A Variance
A variance provides property owners with flexibility in using their property as they see fit. Without it, some property owners would be unable to build on their land or create revenue-generating activities. Variances make it more likely for businesses and individuals to leverage underutilized land, thereby boosting the local economy in many instances.The Risks of A Variance
There are risks involved in seeking a variance. In the event that the request is denied, the property owner wouldn't be allowed to proceed with their desired modifications, resulting in time and money lost. Furthermore, even if the zoning board approves an area/variance, it may have unpredictable implications for surrounding properties as well, including affecting the view shed from neighboring windows, impacting quality of life in some instances.Opinions on Variances
Some people believe that the zoning ordinances should not be flexible since they already represent the best balance between the common good and individual rights. To them, extensive use of variances undermines the entire point of zoning which is to maintain harmony and stability within neighborhoods. Others, however, see the process of getting a variance as beneficial, stating that it enables property owners to use their land effectively while assuring that everyone has an equal opportunity to do so. Overall, the perception of variances differs based on one's values and needs.Conclusion
Variances are a crucial component of modern zoning regulations. They serve to grant property owners sufficient flexibility while ensuring that everybody's interests are taken into account. Although opinions on variances vary widely, they still represent a critical tool for balancing private property rights with community concerns.What Is A Variance In Real Estate?
Real estate is a complex industry that can be difficult to navigate, especially for those who are not familiar with the jargon and technical terms used in the industry. One such term that may confuse new real estate investors or buyers is variance. In this article, we'll explain what a variance is in real estate and why it's important to understand.What Is a Variance in Real Estate?
In simple terms, a variance is an official permission from a local government agency that allows a property owner to deviate from certain zoning regulations. For example, let's say you own a property in a residential zone where only single-family homes are allowed. If you want to convert your property into a duplex or add an extra unit, you would need to apply for a variance to do so legally.The Purpose of Variances
The purpose of variances is to allow property owners to make changes or modifications to their properties that wouldn't otherwise be allowed under zoning regulations. They're typically granted under certain circumstances, such as when zoning regulations create a hardship for a property owner or when the desired modification would benefit the community as a whole.For example, if a property owner wants to build a wheelchair ramp on their property but the building codes do not make accommodations for such ramps, they can apply for a variance. In this case, the variance would serve the purpose of improving accessibility and would likely be granted.How Are Variances Obtained?
To obtain a variance, property owners must typically submit an application to their local zoning authority or planning board. The application will include details about the proposed modification, including how it meets the criteria for a variance.Property owners may also be required to attend a public hearing or meeting where they can present their case and answer questions from the zoning authority or planning board. The decision to grant or deny a variance is typically based on whether the proposed modification meets the criteria for a variance and whether it would negatively impact the community.Types of Variances
There are two main types of variances: area variances and use variances.An area variance allows property owners to deviate from specific dimensional requirements, such as setbacks, lot coverage, or building height. For example, if a property owner wants to build a garage closer to the property line than the set setback requirement, they can apply for an area variance.A use variance, on the other hand, allows property owners to use their property in a way that is not allowed by zoning regulations. For example, if a property owner wants to operate a retail business in a residential zone, they could apply for a use variance.Why Are Variances Important?
Variances are important because they allow property owners to make changes or modifications to their properties that they wouldn't otherwise be able to make under zoning regulations. This can be beneficial both for property owners and the community as a whole.For example, if a property owner wants to add an extra unit to their property, this could provide much-needed housing in an area where housing is scarce. Likewise, if a property owner wants to build a business in a residential neighborhood, this could bring economic benefits to the community.When Do You Need a Variance?
You will need a variance if you want to make changes or modifications to your property that are not allowed under zoning regulations. This could include adding an extra unit, building a taller building, or using the property for a different purpose than what is currently allowed.It's important to note that obtaining a variance can be a complicated process, and it's not always guaranteed that your application will be approved. If you're considering making changes or modifications to your property, it's a good idea to consult with a real estate attorney or zoning expert to determine what steps you need to take to obtain a variance.The Cost of a Variance
The cost of obtaining a variance can vary depending on the location and complexity of the application. There may be filing fees, legal fees, and other administrative costs associated with the process. It's important to budget for these costs when considering a variance application.Conclusion
In summary, a variance is an official permission from a local government agency that allows a property owner to deviate from certain zoning regulations. Variances are typically granted under certain circumstances and allow property owners to make changes or modifications to their properties that they wouldn't otherwise be able to make under zoning regulations. If you're considering obtaining a variance, it's important to consult with a real estate expert to determine what steps you need to take to obtain one.Understanding Variance In Real Estate: A Comprehensive Guide
Real estate is a lucrative industry that thrives on the buying and selling of properties. For that purpose, it is important to understand how the industry operates, including various real estate jargons used in transactions. One of such terms is variance.
In this article, we will be exploring everything about variance in real estate, and how it can affect the value and use of your property.
What is a Variance?
A variance refers to an authorized deviation from the existing zoning regulations by a property owner or a developer. In simple terms, it allows the owner to carry out an activity that is not within the permitted land use.
In other words, if you want to utilize your property for something that is outside the scope of current zoning rules, you must apply for a variance to obtain permission from the local authorities.
This permission is granted only after much consideration of the impact and potential implications of such a development. It is vital to note that the variance only applies to your property as it does not affect any other land in the area.
The Two Types of Variances
Primarily, there are two types of variances – Use Variance and Area Variance.
Use Variance
This type of variance is granted when the property owner wants to carry out an activity that is not allowed by the existing zoning regulations, such as converting a residential building into a school.
The owner has to show irrefutable evidence that the new development will result in no adverse effects on the community, and it should not interfere with the local authorities' comprehensive plan.
Area Variance
An area variance is sought when the property owner wants to develop a property in such a way that contradicts the setback restrictions, lot coverage, or height limits.
This variance is also only granted when it can be shown that there are practical difficulties preventing the owner from developing their property within the existing zoning regulations.
The Variance Application Process
The variance process is lengthy and requires a considerable amount of paperwork. Once the application is submitted, the local authorities will schedule hearings to evaluate its feasibility.
During these hearings, the property owner and their representative have to present their case and address any concerns raised by the community, such as possible environmental hazards, increased traffic, and noise pollution, amongst others.
Negotiation And Decision Making
The local authorities will then negotiate with the property owner to come up with an acceptable solution to address any issues raised. In some cases, negotiations may lead to a compromise on the proposed development.
Once an agreement has been reached, the local authorities will make a final decision on whether to grant the variance or not. In most cases, the approval process takes between 30 to 60 days.
The Impact of A Variance on Real Estate
The impact of a variance on real estate cannot be overemphasized. Firstly, it can change the value of your property. Depending on the type of variance approved, a property can increase or decrease in value.
For example, if a variance is granted to convert a residential building to a commercial one, the value of the property will likely increase. However, if the variance is to build a garage closer to the road than regulations permit, the value might decrease because it deviates from the norm.
Secondly, the granting of a variance may result in increased traffic around the area. This, in turn, could affect the overall desirability of the area and determine how much people are willing to pay for properties there.
The Bottom Line
A variance can be a powerful tool in a property owner's arsenal, but it is essential to understand the process and implications of obtaining one. It is vital to involve experienced professionals such as lawyers, surveyors, and architects to assist with the application process and ensure you get the best outcome.
If you want to avoid any complications, understand your local zoning regulations, and ensure that you stay within the specified restrictions for your property. In case you need to make any changes, contact the authorities for guidance.
For any other inquiries about real estate, please do not hesitate to reach out to us. Our team of experts is always on hand to offer advice and help guide you through every step of your property journey.
Thank you for reading!
What Is A Variance In Real Estate: Common Questions and Answers
People Also Ask About Variance in Real Estate
1. What is a variance in real estate?
A variance, in real estate, is an exception or permission granted by the local zoning board to allow a property owner to use his or her land in a way that is not permitted under applicable zoning regulations.
2. Why do people seek a variance in real estate?
People often seek a variance in real estate because they want to use their property for purposes that do not comply with local zoning rules. For example, a property owner may want to build a structure that exceeds the height restriction in the local zoning ordinance.
3. How does someone apply for a variance?
In order to apply for a variance, the property owner must submit an application to the local zoning board. The application should include a written request explaining the reasons why the variance is needed, as well as any supporting documents that can help make the case for granting the variance. The property owner will typically be required to attend a hearing before the zoning board in order to present his or her case.
4. What factors do zoning boards consider when deciding whether to grant a variance?
Zoning boards typically consider a number of factors when deciding whether to grant a variance, including:
- The impact on the surrounding community
- The degree to which the requested variance deviates from the zoning regulations
- The potential harm to the public good
- The extent to which the proposed use of the property is consistent with the goals of the zoning plan
5. What happens if a variance request is denied?
If a variance request is denied, the property owner may still petition for a variance in court, but the decision of the zoning board will typically be given significant weight by the court.
6. Can a variance be transferred to a new owner?
Generally, a variance cannot be transferred to a new owner. However, there are some situations where the variance may be transferable or assignable, depending on the specific language of the zoning ordinance and the terms of the variance itself. It is important to consult with an experienced real estate attorney to understand the rules and restrictions governing variances in your local area.