CMA: Zoning vs Subdivision

[PJ Boxel]

This is probably a question for the more experienced investor among us: Is a property zone the same as a subdivision? I know that appraisers will never leave a subdivision! However, it's not the easiest task to identify these divisions. Anyone knows more about this topic?

[Kevin Sobilo]

@PJ Boxel, I don't consider myself an expert but I think I can offer some info.

With zoning, a municipality starts by creating a master plan for how they want to see development unfold in their community over the coming decades. That is how they plan where the boundaries of each kind of zone are. 

From the master plan they create a zoning ordinance that lays out all the details for how each type of zone is to be regulated.

A subdivision is a plan to develop a plot of land by subdividing it and usually adding in infrastructure like roads and utilities. I'm sure in most cases the land involved is all within 1 zone appropriate for the type of development but I'm sure sometimes they need to get zoning changes/approvals as well.

A subdivision is just a land use like building a single home and unrelated to how zones are laid out except that when they update the master plan in the future they may adjust some boundaries to run along these subdivisions.

Also, while an appraiser will likely look for comps within a subdivision, in many places that will not be possible and they absolutely will use comps from outside.