The Veteran inherited a farm five years ago. At that time the farm h. Example 2: Situation: Convertibility was worth $250,000. The Veteran demonstrates that, because of depressed of Assets land values in the area, the property could be sold today for only $150,000. The value of the property for purposes of a VA net worth determination is $150,000. The fact that the property was worth substantially more five years Result: ago or might be worth substantially more in the future is irrelevant. i. Example 3: The Veteran owns a piece of real estate that was valued last year at Situation: Convertibility $90,000. However, a recent newspaper story indicated that a piece of land, of Assets approximately one kilometer away, was previously used as a toxic waste dump. State environmental officials are conducting tests to determine the extent of contamination. In the meantime, the Veteran’s land could not be sold for more than $10,000. The value of the property for net worth determination purposes is Result: $10,000. However, if it is later determined that the Veteran’s property is uncontaminated and its market value increases, reconsider net worth. 5. Developing the Value of Real Estate This topic contains information on developing the value of real estate, Introduction including the current value of property sources of information about property value excluding the value of a single-family dwelling determining the reasonable lot area dual-use of property, and the effect of State homestead and exemption statutes. Change Date April 22, 2015 a. Current Claimants who have held parcels of real estate for long periods of time may Value of Property be unaware of current real estate prices, and greatly underestimate the value of their holdings. If it appears that a claimant is underestimating the of real property, ask the claimant to furnish evidence of the current market value of the real estate.
h. Example 2: Convertibility of Assets Situation: The Veteran inherited a farm five years ago. At that time the farm was worth $250,000. The Veteran demonstrates that, because of depressed land values in the area, the property could be sold today for only $150,000. The value of the property for purposes of a VA net worth determination is $150,000. Result: The fact that the property was worth substantially more five years ago or might be worth substantially more in the future is irrelevant. i. Example 3: Convertibility of Assets Situation: The Veteran owns a piece of real estate that was valued last year at $90,000. However, a recent newspaper story indicated that a piece of land, approximately one kilometer away, was previously used as a toxic waste dump. State environmental officials are conducting tests to determine the extent of contamination. In the meantime, the Veteran’s land could not be sold for more than $10,000. Result: The value of the property for net worth determination purposes is $10,000. However, if it is later determined that the Veteran’s property is uncontaminated and its market value increases, reconsider net worth. 5. Developing the Value of Real Estate Introduction This topic contains information on developing the value of real estate, including the current value of property sources of information about property value excluding the value of a single-family dwelling determining the reasonable lot area dual-use of property, and the effect of State homestead and exemption statutes. Change Date April 22, 2015 a. Current Value of Property Claimants who have held parcels of real estate for long periods of time may be unaware of current real estate prices, and greatly underestimate the value of their holdings. If it appears that a claimant is underestimating the of real property, ask the claimant to furnish evidence of the current market value of the real estate.