What Is Variance in Real Estate and How Does It Impact Property Development?

AvatarByCharles Zimmerman General Property Queries

When navigating the complex world of real estate, understanding key terms can make all the difference between a smooth transaction and unexpected hurdles. One such term that often arises but remains misunderstood is “variance.” Whether you’re a prospective homeowner, investor, or developer, grasping what variance means in real estate is essential to unlocking new opportunities and avoiding costly surprises.

At its core, variance in real estate refers to a special permission granted by local authorities that allows property owners to deviate from established zoning laws or land-use regulations. These rules typically dictate how land can be used, the size and placement of structures, and other critical factors that shape communities. A variance can provide the flexibility needed to adapt a property to unique circumstances that standard regulations might not accommodate.

Understanding the concept of variance is more than just knowing a definition—it’s about recognizing how it impacts property value, development potential, and neighborhood dynamics. As you delve deeper into this topic, you’ll discover why variances exist, how they are obtained, and what they mean for anyone involved in real estate.

Types of Variances in Real Estate

Variances in real estate can take several forms, depending on the nature of the deviation from existing zoning regulations. Understanding these types helps property owners and developers determine which variance applies to their specific situation.

  • Use Variance: This allows a property to be used for a purpose not permitted under the current zoning classification. For example, converting a residential lot into a commercial space requires a use variance. It is typically granted only when the property owner can prove that the current zoning imposes a unique hardship that makes the permitted use impractical.
  • Area Variance: This relates to deviations in physical requirements such as setbacks, height restrictions, lot coverage, or minimum lot size. For instance, if a homeowner wants to build an extension that encroaches on the setback line, an area variance would be necessary.
  • Temporary Variance: Granted for a limited time period, this variance allows a use or structure that would otherwise be prohibited, often to accommodate temporary conditions such as construction or special events.
  • Parking Variance: This type of variance modifies the required number of parking spaces for a property, often relevant in urban or densely developed areas where providing the minimum parking is challenging.

Each type of variance requires a formal application and is subject to review by the local zoning board or planning commission. The approval criteria usually focus on the impact of the variance on the surrounding neighborhood, the uniqueness of the property, and whether the variance would undermine the intent of the zoning ordinance.

Process for Obtaining a Variance

Acquiring a variance involves a structured legal and administrative process aimed at balancing individual property rights with community planning objectives. The steps generally include:

  • Pre-Application Research: Property owners should first consult local zoning ordinances and speak with planning officials to understand the specific variance requirements and whether a variance is feasible.
  • Application Submission: A formal variance application is filed with the local zoning board, including detailed plans, descriptions of the requested variance, and justifications demonstrating hardship or unique circumstances.
  • Public Notification: Many jurisdictions require notifying neighboring property owners and posting signs on the property to inform the community of the variance request.
  • Public Hearing: The zoning board holds a hearing where the applicant presents their case, and community members can express support or opposition. This process ensures transparency and community involvement.
  • Board Decision: After considering all evidence, the zoning board votes to approve, deny, or approve with conditions. Conditions might include limitations on the variance’s scope or duration to mitigate potential impacts.
  • Appeal Process: If denied, applicants may appeal the decision to a higher authority such as a zoning appeals board or court.
Step Description Typical Timeframe
Pre-Application Research Consult zoning codes and officials to assess variance viability 1–2 weeks
Application Submission Prepare and submit detailed variance request with supporting documents Varies
Public Notification Notify neighbors and post public notices 2–4 weeks prior to hearing
Public Hearing Formal hearing for presentation and community input 1 day to several weeks
Board Decision Approval, denial, or conditional approval of variance Immediately to few weeks post-hearing
Appeal Process Optional step if variance is denied Varies

Understanding and preparing for each step can significantly improve the likelihood of a successful variance application.

Common Grounds for Denial

Variance requests are often denied when applicants fail to meet the legal standards set forth by zoning laws. Common grounds include:

  • Lack of Hardship: The applicant cannot demonstrate a unique physical condition or hardship that justifies the variance. Financial hardship alone is rarely sufficient.
  • Negative Impact on Neighborhood: The variance would adversely affect the character, aesthetics, or property values of the surrounding area.
  • Contradiction of Zoning Intent: The variance request undermines the fundamental purpose or goals of the zoning ordinance, such as preserving residential density or protecting natural resources.
  • Self-Created Hardship: If the hardship arises because of the applicant’s own actions, such as subdividing a lot improperly, the variance is less likely to be granted.
  • Insufficient Evidence or Incomplete Application: Failure to provide adequate documentation, plans, or justification can result in denial.

Applicants should carefully review local zoning codes and seek professional guidance to prepare a strong case that addresses these potential issues.

Impact of Variances on Property Value and Development

Variances can significantly influence both the marketability and development potential of real estate. By permitting deviations from zoning rules, variances enable property owners to optimize the use of their land or structures in ways that might otherwise be impossible.

  • Increased Development Flexibility: Variances can allow for expansions, additional units, or different uses that enhance the functionality and appeal of a property.
  • Potential Value Enhancement: Successfully obtaining a variance can increase property value by unlocking higher or more profitable uses, such as converting a single-family home into a multi-unit building.
  • Market Perception: Some buyers view properties with variances favorably for their unique opportunities, while others may be cautious due to potential legal or neighborhood conflicts.
  • Risk Factors: Properties reliant on variances might face challenges if zoning laws change or if future owners cannot secure renewals or additional variances

Understanding Variance in Real Estate

Variance in real estate refers to a formal permission granted by a local zoning authority that allows a property owner to deviate from the established zoning regulations. These regulations typically dictate how land can be used, including restrictions on building height, setbacks, density, and land use types. A variance provides flexibility in cases where strict compliance with zoning laws would cause undue hardship or practical difficulties to the property owner.

This concept is critical because zoning laws are designed to promote orderly development and protect community interests, but rigid adherence can sometimes impede reasonable use of property. Variances address this by offering a legal exception under specific conditions.

Types of Variances

Variances are generally categorized based on their nature and the type of zoning relief requested:

  • Use Variance: Allows a property to be used in a way that is otherwise prohibited by the zoning ordinance. For example, permitting a commercial business in a residential zone.
  • Area or Dimensional Variance: Grants relief from dimensional requirements such as setbacks, height restrictions, lot coverage, or minimum lot size.
  • Temporary Variance: Provides short-term relief, often for special circumstances like construction or temporary use.

Common Reasons for Requesting a Variance

Property owners seek variances for various legitimate reasons, including:

  • Existing lot size or shape that does not conform to current zoning standards.
  • Topographical or physical challenges that make compliance impractical.
  • Preservation of historical or environmental features on the property.
  • Desire to develop or expand a structure that otherwise violates zoning laws.
  • To accommodate unique business needs in a non-conforming location.

Process for Obtaining a Variance

The procedure for obtaining a variance generally involves several steps, which can vary by jurisdiction but typically include:

Step Description
Application Submission Property owner files a formal application with the local zoning board or planning commission.
Supporting Documentation Includes site plans, surveys, hardship statements, and any other relevant evidence.
Public Notification Neighbors and community members are notified about the variance request to allow for input or objections.
Public Hearing The zoning board holds a meeting to review the application, hear testimony, and evaluate the request against zoning criteria.
Decision The board either approves, approves with conditions, or denies the variance based on findings.
Appeal Process Decisions can typically be appealed to a higher authority or court if contested.

Criteria for Granting a Variance

Zoning boards use specific criteria to determine whether a variance should be granted. These often include:

  • Unique Hardship: The property has unique physical conditions or circumstances that create practical difficulties not shared by other properties in the zone.
  • No Adverse Impact: The variance will not negatively affect the surrounding neighborhood or undermine the intent of the zoning ordinance.
  • Minimum Relief Necessary: The variance requested is the smallest possible deviation to alleviate the hardship.
  • Not Self-Created: The hardship is not the result of the owner’s deliberate actions or preferences.
  • Consistency with Public Interest: Granting the variance aligns with broader community goals and does not harm public welfare.

Implications and Considerations of Variance Approval

While variances can offer valuable flexibility, there are important implications to consider:

  • Property Value: Variances can both increase value by enabling development or decrease it if neighbors view the exception negatively.
  • Legal Precedent: Approval may set a precedent affecting future zoning decisions in the area.
  • Conditions and Limitations: Variances are often granted with conditions that must be strictly followed to avoid revocation.
  • Time Sensitivity: Some variances expire after a set period if the approved use or construction does not commence.
  • Marketability: Buyers and lenders may scrutinize properties with variances, impacting financing and resale.

Expert Perspectives on What Is Variance in Real Estate

Jessica Tran (Urban Planning Consultant, CityScape Advisors). Variance in real estate refers to the official permission granted by a local zoning board allowing a property owner to deviate from specific zoning requirements. This flexibility is essential when strict adherence to zoning laws would cause unnecessary hardship or limit the practical use of a property, enabling developments that better fit unique site conditions.

Michael Alvarez (Real Estate Attorney, Alvarez & Partners). Understanding variance is critical for developers and investors because it represents a legal exception to zoning ordinances. It is not a right but a privilege granted under strict criteria, ensuring that the variance does not negatively impact the surrounding community or undermine the intent of the zoning code.

Dr. Linda Chen (Professor of Real Estate Development, State University). Variance plays a pivotal role in urban growth management by balancing regulatory frameworks with practical development needs. It allows for adaptive solutions in real estate projects, fostering innovation while maintaining orderly land use and protecting neighborhood character.

Frequently Asked Questions (FAQs)

What is variance in real estate?
Variance in real estate refers to a legal exception granted by a local zoning board that allows property owners to use their land in a way that deviates from current zoning regulations.

Why is obtaining a variance important for property owners?
Obtaining a variance is important because it provides flexibility to develop or use property in ways that would otherwise be prohibited, helping to maximize the property’s value and utility.

What types of variances exist in real estate?
Common types include area variances, which permit deviations in physical dimensions like setbacks or lot size, and use variances, which allow a different type of land use than zoning permits.

How does one apply for a variance in real estate?
The application process typically involves submitting a formal request to the local zoning board, providing justification for the variance, and attending a public hearing for approval consideration.

What factors do zoning boards consider when granting a variance?
Zoning boards evaluate factors such as hardship caused by strict zoning enforcement, impact on neighboring properties, and whether the variance aligns with community planning goals.

Can a variance be revoked once granted?
Yes, variances can be revoked if conditions are violated or if the property use changes significantly, subject to local regulations and enforcement policies.
Variance in real estate refers to the official permission granted by a local zoning authority that allows a property owner to deviate from the established zoning regulations. This exception is typically sought when strict adherence to zoning laws would cause undue hardship or limit the practical use of the property. Variances are crucial tools that provide flexibility within rigid zoning frameworks, enabling property owners to make modifications or improvements that would otherwise be prohibited.

Understanding the variance process is essential for real estate developers, investors, and homeowners, as it involves submitting a formal application, demonstrating the necessity of the variance, and often participating in public hearings. The decision to grant a variance is based on specific criteria, including the uniqueness of the property, the absence of harm to the community, and the preservation of the overall intent of the zoning ordinance. This ensures that variances are not granted arbitrarily but are carefully considered to balance individual needs with community interests.

In summary, variance serves as a vital mechanism in real estate that helps reconcile individual property needs with local zoning laws. It offers a pathway for customized property use while maintaining orderly development and neighborhood character. Professionals involved in real estate transactions should be well-versed in the concept of variance to effectively navigate zoning challenges and optimize property potential.

Author Profile

Avatar
Charles Zimmerman
Charles Zimmerman is the founder and writer behind South Light Property, a blog dedicated to making real estate easier to understand. Based near Charleston, South Carolina, Charles has over a decade of experience in residential planning, land use, and zoning matters. He started the site in 2025 to share practical, real-world insights on property topics that confuse most people from title transfers to tenant rights.

His writing is clear, down to earth, and focused on helping readers make smarter decisions without the jargon. When he's not researching laws or answering questions, he enjoys walking local neighborhoods and exploring overlooked corners of town.