Would appraising an SFR with commercial zoning require a general license?

[Have Laser-Will Travel]

The subject and everything on the street is SFR despite the commercial zoning. Wouldn't determining HBU and site value still require weighing commercial use and have to be completed by a general appraiser?

 

[CindyR]

yup

 

[Sid Holderly]

Depends on what state you are in and may depend on what type of commercial zoning. Read your state code.

 

[bnmappraisal]

Have Laser - I agree with CindyR but will add - you could do it as a CR, you just need a CG's sig too

 

[CANative]

I don't necessarily agree with the others.

I've done plenty, especially where the type of commercial zoning also allows for single family residential uses.

 

[Have Laser-Will Travel]

Depends on what state you are in and may depend on what type of commercial zoning. Read your state code.

That already sounds out of my league.

 

[EddieB]

I agree with Can. If the zoning allows for SFR, as shown by the current use, then HBU may be SFR. Check with the planning dept to verify the rebuild requirements. If SFR is the HBU then be sure to use homes with similar zoning. Go back in time to see how all nearby properties sold.

Example. In my small town the entirety of Main St is zoned commercial. SFR use scattered throughout. Near both ends of Main, SFR sells higher than commercial. Even other spots. Ten years down the road may be a different case, but most doubtful. Your situation could very well be different.

 

[spittman]

Is highest and best use commercial? If you are not qualified to determine that then ...

 

[Have Laser-Will Travel]

I don't necessarily agree with the others.

I've done plenty, especially where the type of commercial zoning also allows for single family residential uses.

At first it seems like FNMA provides an easy way to qualify HBU as residential; "[if]...the present improvements contribute to the value of the subject property so that its value is greater than the estimated vacant site value, the appraiser should consider the existing use as reasonable and report it as the highest and best use."

But in the same section also says the improvements "...must provide more profit than any other use of the site would generate." It seems that a commercial developer might be willing to pay more than the subject value as an SFR at some point or, maybe pay more to multiple owners to develop a strip mall or apartment building. But, doesn't HBU at some point have to consider what is likely rather than just what is possible? Is it enough to just cite the lack of commercial developments along the street?

 

[Have Laser-Will Travel]

I agree with Can. If the zoning allows for SFR, as shown by the current use, then HBU may be SFR. Check with the planning dept to verify the rebuild requirements. If SFR is the HBU then be sure to use homes with similar zoning. Go back in time to see how all nearby properties sold.

Example. In my small town the entirety of Main St is zoned commercial. SFR use scattered throughout. Near both ends of Main, SFR sells higher than commercial. Even other spots. Ten years down the road may be a different case, but most doubtful. Your situation could very well be different.

If rebuild doesn't permit SFR, would that automatically disqualify SFR as HBU? I get confused over HBU as vacant and HBU as improved. Which applies when?