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Daycare, Commercial Or Residential

Discussion in 'Urgent - Help Needed' started by Kalum Johnson, Jul 9, 2004.

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  1. Kalum Johnson

    Kalum Johnson New Member

    0
    Oct 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    I have a daycare to appraise. The zoning is R-4 general residence. Under the zoning it states that a day-care is a legal use. Do I appraise this one with residential comps and if I do how do I account for lack of bedrooms. This place has several daycare class-rooms complete with water fountains, emergency exits, bathrooms etc. There is a office, a reception area and a general kitchen with a commercial stove and cooking area. I have one opinion saying this is a commercial property and I should compare it to other commercial comps. (this dosen't seem right to me.)

    Can someone please help. I don't want to lose the deal, but I will let it go if I can't figure it out. I have already told the people that ordered the appraisal that I haven't dealt with this situation before but I would look into to see how to get the job done. There are getting impatient at this point.

    Subject Address:

    7428 N. Rodgers Ave, 60626
     
  2. Indiana Jones

    Indiana Jones Member

    1
    Oct 16, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Indiana
    Kalum
    Prepare to duck buddy.
     
  3. Rich Hahn

    Rich Hahn Senior Member

    0
    May 2, 2003
    Professional Status:
    General Public
    State:
    Colorado
    i did one like that about 8 years ago for Ford, Associates

    my value was "LOW"
    other appraiser hit the number :cool:

    well it just sold for rock bottom price as a foreclosure....i imagine due to all the cost to cure to bring it back to a single family res...see i was right 8 years ago ;)


    Rich
     
  4. Mountain Man

    Mountain Man Elite Member

    26
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    USPAP 101..... competency. Me thinks you have a complex commercial assignment, and better find a mentor if you want to tackle this one. Sounds like you don't have much experience with non-residential appraisals. ;)

    P.S. don't just look at the zoning.... look at highest and best use.
     
  5. Scott Kibler

    Scott Kibler Elite Member

    52
    Oct 7, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    :ph34r:


    I hope you're asking here because your supervisor told you to. Six month associate appraisers should not be attempting assignments like this without a ton of handholding and direction by their supervisor including a joint inspection. Is your supervisor a Certified General? They better be. Is this a house that has been converted to a commerical like interior? Is this for a residential mortgage loan? High density residential area there, new condos going up I think on that very block. Have you done a highest and best use analysis? What was your methodology? What did that tell you?

    You do realize that this might be a little more work than pluging in some comps and adjusting for bedrooms, right?

    Personally I'd be more than happy to lose this particular "deal."
     
  6. kim grant

    kim grant Junior Member

    0
    Nov 21, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Why doesn't that seem right to you?

    If it is legally permissible and feasible (it's already there) then the present use is conforming.

    A residential day care facility is for profit and thus I consider them commerical in classification. How you do think a residential buyer would look at this property in it's as-is state?

    If you are here asking these types of questions as well as posting the address of the property in the hopes that someone on the internet will tell you what to do with it you are way in over your head. You don't have the level of license necessary to completed this assignment nor do you have the experience. If you complete this thing due to pressure then you will be in violation of the competency rule of USPAP and trust me, that report will be so messy it will be begging for review because even I don't think you know what the heck you are doing.

    Why risk all of that? For a fee? Give it back and tell them it's commercial and you are not qualified with a high enough license for this assignment. Move onto things you can work with and truly gain experience in.

    Good luck......Kim
     
  7. Kalum Johnson

    Kalum Johnson New Member

    0
    Oct 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    I guess I should have ducked! This one sounded tough when I came across it. I was told to investigate it and that my supervisor would back me up. I've done research on commercial properties before but never had to just "figure out" one like this.

    I think I'm going to pass.

    If anyone from chicago wants to take a hand-off let me know.

    -Kalum
     
  8. Diana Malcolm

    Diana Malcolm Junior Member

    0
    Mar 4, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    I had almost an identical situation a few months ago. The seller is a real estate agent whom had purchased the property two years before. It was an operating daycare when he bought it and he had made very few changes. He was going to make about $100k profit on the deal. I asked"why do you think you were able to buy so low and sell so high?" and he replied "they didn't stress the commercial use (income) in the listing when I bought it"

    I called the client from inside the improvement. He put appraisal on hold. He ended up canceling and I received a trip fee. A few months later the deal closed and the seller smiled all the way to the bank. :leeann:
     
  9. Chris Colston

    Chris Colston Elite Member

    0
    Jul 24, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Anybody else see a problem with THIS? Has any confidentiality been broken? Just curious.
     
  10. Ryan Nyberg

    Ryan Nyberg Senior Member

    0
    Jan 15, 2002
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Washington
    Chris,

    Yes under the condifedentiality clause of USPAP.

    Kalum,

    Sounds commercial use to me. I have done some where they were Day Care providers but the house if Vacant would still have been considered as a SFR. What you describe in your post sounds to be a commercial property with special use. Hopefully you have taken all this to your mentor and let him/her decide from there on proceeding with this assignment as a commercial appraisal. If your mentor is adequately licensed to complete a commercial assignment.

    Diana,

    Did you find out if they closed as a residential or commercial use? How do you like then new forms. That one shop in Tacoma is going to start having to check yes for the past 5 years and put exactly what he was sanctioned for.
     
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