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  #1  
Old 11-06-2011, 12:43 PM
Lobo Fan's Avatar
Lobo Fan Lobo Fan is offline
 
Join Date: Nov 2004
Location: Rio Rancho, NM
State: New Mexico
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Default Commercial Use Accessory Unit

I looked at a house last week (Corrales for the locals), that had a nice big main house, an art studio of lesser quality, a detached garage with horse stables and a tack room. The sticky part is a detached guest house that is set up as a doctor's office. One bedroom is the doctor's office, the other is an exam room complete with an exam table with stirrups. There is no kitchen, it is used as a file storage area.

Good construction, would make a nice little guest house.

Since it is used as a commercial space, can I or should I try to value it as part of a residential refi appraisal. Zoning allows for a home based business as long as the space is 1,000 sf or less. This space is closer to 1500.

Thinking of addressing it as an accessory unit with no kitchen and let the UW deal with the commercial use of the property.

Last edited by Lobo Fan : 11-06-2011 at 02:44 PM.
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Old 11-06-2011, 04:23 PM
sail143 sail143 is offline
 
Join Date: Oct 2011
State: Rhode Island
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I don't know you area but it seems you have more than one accessory unit. Are they all legal? Regardless, it appears you are in the territory of illegal use with commerical space exceeding what is allowed for home based business. Check with zoning to confirm legal use status. Better to run this by the lender first rather than submit an appraisal for them to deal with.
  #3  
Old 11-06-2011, 06:44 PM
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Terrel L. Shields Terrel L. Shields is offline
 
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Location: Springtown, AmeRica
State: Arkansas
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Mixed use... fannie used to have some limits. IMHO, it is a "residential" property when the HBU is "Residential" and the bulk of the improvements are "residential" and the accessory unit(s) are readily convertable to "residential" uses....someone with a professional office, a private machine shop in their shed, etc... it's really "residential" as HBU.
My cousin works out of his house. It is zoned R-O - residential office, a CPA. For formal meetings he has a small office to meet clients, otherwise, he is working at home.. ditto for me and a host of other appraisers. But if we packed our stuff and sold out, wouldn't it be just a house and /or with outbuilding?

OTOH, I was sent to appraise a "residence" and there was a 6,000 SF shop building that was clearly used as a body shop and the shop had a paint room, prep room, and frame straightening machine in addition to a hoist....that's a different animal. The bulk of value was in the business, not the double wide.
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  #4  
Old 11-06-2011, 08:28 PM
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Lobo Fan Lobo Fan is offline
 
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Location: Rio Rancho, NM
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The parcel size is over 4 acres so lots of room for everything. I noted a room on a sketch once as an office that had french doors leading out to a patio area. The UW kept coming back wanting to know if there were any commercial uses of that space. It was just a home office, but I started calling them dens after that one. This is distinctly a commercial use. I am going to lob this one back to the client for guidance.
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