Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Urgent - Help Needed
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 07-09-2004, 10:15 PM
Kalum Johnson Kalum Johnson is offline
 
Join Date: Oct 2003
Location: Chicago
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 33
Default

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
Sponsored Links

  #2  
Old 07-09-2004, 10:30 PM
Indiana Jones's Avatar
Indiana Jones Indiana Jones is offline
 
Join Date: Oct 2002
Location: Indianapolis, IN
State: Indiana
Professional Status: Licensed Appraiser
Posts: 797
Default

Kalum
Prepare to duck buddy.
  #3  
Old 07-09-2004, 10:35 PM
Rich Hahn Rich Hahn is offline
 
Join Date: May 2003
Location: Lucy's New and Improved Trailor Park, first, second and last months rent please.
State: Colorado
Professional Status: General Public
Posts: 1,254
Default

i did one like that about 8 years ago for Ford, Associates

my value was "LOW"
other appraiser hit the number

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  
Old 07-09-2004, 10:47 PM
Mountain Man's Avatar
Mountain Man Mountain Man is offline
 
Join Date: Jan 2002
Location: North of the ATL.
State: Georgia
Professional Status: Certified General Appraiser
Posts: 15,010
Default

Quote:
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.
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.
__________________
Highest and Best Use... it is more than just a check box on a form. Look it up, learn it, use it.
  #5  
Old 07-09-2004, 11:52 PM
Scott Kibler's Avatar
Scott Kibler Scott Kibler is offline
 
Join Date: Oct 2003
Location: Chicago
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 5,160
Default




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."
__________________
Everybody grab your torches and pitchforks!
  #6  
Old 07-10-2004, 12:35 AM
kim grant kim grant is offline
 
Join Date: Nov 2002
Location: SF, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 389
Default

Quote:
Originally posted by Kalum Johnson@Jul 9 2004, 10:15 PM
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.)

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  
Old 07-10-2004, 09:57 AM
Kalum Johnson Kalum Johnson is offline
 
Join Date: Oct 2003
Location: Chicago
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 33
Default

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  
Old 07-10-2004, 10:26 AM
Diana Malcolm Diana Malcolm is offline
 
Join Date: Mar 2003
Location: Tacoma
State: Washington
Professional Status: Certified Residential Appraiser
Posts: 250
Default

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.
  #9  
Old 07-10-2004, 10:39 AM
Chris Colston's Avatar
Chris Colston Chris Colston is offline
 
Join Date: Jul 2003
Location: East Central Florida, Space Coast
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 5,442
Default

Quote:
Originally posted by Kalum Johnson@Jul 9 2004, 11:15 PM

Subject Address:

7428 N. Rodgers Ave, 60626
Anybody else see a problem with THIS? Has any confidentiality been broken? Just curious.
__________________
Chris
  #10  
Old 07-10-2004, 11:43 AM
Ryan Nyberg's Avatar
Ryan Nyberg Ryan Nyberg is offline
 
Join Date: Jan 2002
Location: Washington
State: Washington
Professional Status: Gvmt Agency, FNMA, HUD, VA etc.
Posts: 4,162
Default

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.
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 12:31 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93