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  #1  
Old 09-27-2011, 11:20 PM
kristink kristink is offline
 
Join Date: Mar 2010
State: California
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Default Contributory Value ? - workshop used as garage

I am appraising a home that has a pemitted detached workshop. The investor/owner has converted it into a 3 car garage. The property already has an attached 1 car garage. 1 to 2 car garages are typical in this marketplace. I cannot find a sale (within last 18 months) with a similar detached workshop.

Would you consider this workshop to have any Contributory Value?

It appears that there is a lack of demand for a detached workshop as I have not been able to find any sales with one.
Lender is asking why I did not give it any value.

Any input would be greatly appreciated!!!!!
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Old 09-27-2011, 11:24 PM
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residentialguy residentialguy is offline
 
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Quote:
Originally Posted by kristink View Post
Would you consider this workshop to have any Contributory Value?
You need to ask your market that question. Lack of comps does not mean lack of value. There is no way of any of us knowing that answer, unless someone is familiar with that neighborhood. If you can't find comps, ask you local re agents and local appraisers.

People usually can use more storage/parking space, but I would shy away from adjusting it on the highest value.

I find it hard to believe that you can't find any house with a 3 car garage.
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  #3  
Old 09-28-2011, 12:21 AM
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Terrel L. Shields Terrel L. Shields is offline
 
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Would you consider this workshop to have any Contributory Value?

Quote:
It appears that there is a lack of demand for a detached workshop as I have not been able to find any sales with one.
So....look harder. In my area there are tons of them. But you are in a different market.

Quote:
Lender is asking why I did not give it any value.
give?...and really, why didn't you "give" it value? Is it invisible? Was it free to construct? You have two identical properties with exactly the same price would you not pick the one with the extra building? Pee Poor logic imho.
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  #4  
Old 09-28-2011, 07:45 AM
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J Grant J Grant is offline
 
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I would go to a competing area and find a sale with a detached building or garage.re additional 2 or 3 car bay/workshop and try to find a sale. Normally, lack of demand might indicate lack of value, if the feature were odd or had no function, but an outbuilding/garage usually has function of car storage, workshop etc...eps if it is well built. Imo you need to work harder to find a comp with similar feature- it can be 2 years old or in a diff area over a mile away. In my area, homes with this amenity sell for more, between 10k and 30k more, but that is my area, you have to find a competing area to your subject with similar values, even if it is 5 miles away, and get some idea. Even if sales are 3 years old, if you find a sale in subject area with workshop/garage, you can compare what it sold for at the time compared to similar homes without one.
  #5  
Old 09-28-2011, 08:13 AM
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Originally Posted by J Grant View Post
In my area, homes with this amenity sell for more, between 10k and 30k more,

What???? I just had a 3rd stall garage this year built for $7,500...and it was insulated.

I think I found my new calling... I'm going into the garage building business. I can quadruple your money!!! .....well, I'll pull an AMC maneuver and take 1/2 of your money, but you'll still double it.
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  #6  
Old 09-28-2011, 11:18 AM
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J Grant J Grant is offline
 
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Did you add a third stall to N existing garage or attached to house? A free standing CBS building with electric is costly I have seen receipts for over 40 k
  #7  
Old 09-28-2011, 11:42 AM
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It is an attached stall, but it is was an extra wide 14' stall, insulated, sheet-rocked, electric, including 240v and wired for built-in surround sound {{{Man Cave}}} . ...the price variance is not much different. Sure you can pay 40k and higher. That's called super adequacy

And I would argue that the market prefers an attached garage over a detached garage, so it doesn't matter that it costs more for a detached.

We are talking about a 3rd stall, not 1 or 2 stall...a 3rd. Unless it is a big buck home or farm, the contributory value of a 3rd stall is no where close to cost. Not here, anyway. Maybe a $3-5k adjustment.
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  #8  
Old 09-28-2011, 12:24 PM
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The adjustment is based on the appraiser's opinion of perceived market reaction in relation to the Comparable Sales.
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  #9  
Old 09-28-2011, 12:42 PM
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It sounds lime the poster means a detached three car building not a third stall added
  #10  
Old 09-28-2011, 01:00 PM
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You do have a point, JG. I was thinking he had an (1 car) additional detached stall. My bad. If he only had a 1 car (without the detached), then more value would be in the additional stall...but that value would most likely diminish after 2 -3 stalls. IOW if 1 car has a market value of 20k, having 4 stalls does not mean it has a MV of 80k. (not preaching, just trying to make myself clear)
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