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1004 or 1025 - wrong zoning in county GIS system.

Discussion in 'General Appraisal Discussion' started by apprzr951, Jun 28, 2011.

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  1. apprzr951

    apprzr951 New Member

    0
    Feb 6, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I appraised a property a couple of weeks ago consisting of main house (2400 sf 4 bedroom 2.5 baths and a detached guest house 1500 sf 3 bedroom 2 bathrooms) situated on 4+ acres. This was a nightmare of a report as finding a comp with a similar detached guest house was impossible. I located a detached casita comp and another comp with an attached guest house 800 +/- sf. All of this was discussed in the report, parameters were expanded, etc.

    The owner gets a copy of the report and goes thru the roof with the value (of course), also wanted to know why I did not appraise it as a multi family (I appraised it as a SFR with an accessory unit). Multifamily properties are rare for this area and extremely atypical given the lot size. The lot size is a little large but not atypical as there are homes in the area that support equestrian facilities for example. Researching the subjects zoning (Riverside County, California) A-1-1 (Light Agriculture) clearly stated the guest house or accessory dwellings (guest house) cannot be rented or held out for lease. I explained in my first rebuttal to appraise it as anything other than a single family with an accessory unit would be an unpermitted use.

    The owner then contacts the County and is advised that the zoning is not A-1-1 despite what the County GIS reports, it is actually R2 (I have yet to confirm this.) Now the owner is back on “this needs to be appraised as a multi family” not an SFR with a detached guest house. The client is requesting the followingPlease confirm this information and make any necessary modifications to the report or provide detailed commentary related to any contrary information your are provided through your conversation with xxxxx at the Planning Department.”

    I am assuming that based upon a conversation with the Planning Department the client is going to request for me to change this monstrosity to a Multi Family 1025 report which will make no since at all. The lot size will not be bracketed, nor will the unit mix of each of these units.

    How would you handle this? Even if the zoning in the GIS is incorrect, how do you approach not appraising it as a Multi Family. I feel I did my due diligence in researching this property. I went back into the GIS system this morning to double check (maybe I was wrong) the zoning says A-1-1. What further bothers me was that this was ordered as a SFR 1004 in the first place. Any feedback would be appreciated.
     
  2. coolhandluke

    coolhandluke Member

    0
    Nov 25, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    New Jersey

    Appzr-Could it be that even though the zoning for subject would allow multi family dwellings which are atypical in subjects' market, that the SFR with accessory unit comps you initially found would still be the best comps available? or Wouldn't it be less feasible to use less similar comps (smaller lots, inferior utility and or appeal etc but Multi fam) than the ones you have used already, despite the change of form from 1004 to 1025?
    ?
     
    Last edited: Jun 28, 2011
  3. CANative

    CANative Elite Member

    247
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    For gawd's sake. No one is going to buy that much house on that much land just to collect rental income. Just say that.

    You need to get a good confirmation on the zoning before doing anything else. If it is R2 you might need to re-assess HBU due to the larger parcel size. If it's A1 then you might have a problem with legal use unless the structures pre-date current zoning.

    A1
    http://www.tlma.co.riverside.ca.us/planning/content/zoning/ordnance/ord348b.html#article_xiii

    R2
    http://www.tlma.co.riverside.ca.us/planning/content/zoning/ordnance/ord348a.html#article_vii

    I'll bet you a nickle it's Ag zoned.
     
  4. Mountain Man

    Mountain Man Elite Member

    29
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    http://en.wikipedia.org/wiki/Highest_and_best_use

     
  5. zdfenton

    zdfenton Junior Member

    2
    Nov 13, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Wisconsin
    I think you're looking at this too narrowly

    Legally permissible (zoning) is not the only test of highest and best use, there is also physically possible, financially feasible, and maximally productive

    Assuming they're right and the zoning allows renting, just because it's legally permissable doesn't mean it's financially feasible and maximally productive
     
  6. MKBURNETT

    MKBURNETT Junior Member

    0
    Sep 11, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Here in SD Cry multi gets less value. So he apparently has it rented and needs income to get the loan or he needs it appraised lower. Either way is not your problem. Just ask owner for you to do any intense research with zoning if he got a variance to have a rental and inform owner that this will notify the powers that be of his rental property and this could cause him fines if it is not legal.
     
  7. apprzr951

    apprzr951 New Member

    0
    Feb 6, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Thanks

    "For gawd's sake. No one is going to buy that much house on that much land just to collect rental income. Just say that."

    That's is pretty much what I am thinking, just trying to put it in terms that the client would understand.

    Thanks for all of the feedback....

    I did not mention that the second smaller unit is currently occupied by either the father or brother of the borrower who resides in the main house.

    Again, thank you for all of the responses.
     
  8. Mike Kennedy

    Mike Kennedy Elite Member

    174
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    "Permits issued after July 1997 are available on our web site. Permits issued before July 1997 are archived records and can be obtained only through a request for records. Our oldest records date back to approximately 1963."
    http://www.rctlma.org/building/content/bs_records.aspx
     
  9. CANative

    CANative Elite Member

    247
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I was just there a couple of weeks ago arguing a 311 acre subdivision assessment before the assessment appeals board. I got there early so I had this huge breakfast at a little diner a couple of blocks away.
     
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