Appraising an outlier properties

[Zoe]

1025 or narrative/.

 

[App601]

Let me expand. Most likely buyer of subject real property will live in one unit and rent the other unit out.

They could rent both units out on fee simple property rights and market value opinion if value definition is defined as if Fannie defines it.,

It is not a muti unit property It has only one kitchen. It has 5 bedrooms, one of them is 400 sf and can accommodate 6 people
It has a swimming pool 5 terraces one of them a 2 story terrace ideal for parties
It has an overall construction of over 2000
It resembles a resort located in a neighborhood where typical houses are 900 to 1000 sf
It i being used for short term corporate rentals who come with their entire families
Do you need any more information to realize that this is a commercial property?

Best regards

 

[App601]

1025 or narrative/.

Commercial narrative consisting of RE valuation and business valuation

 

[Zoe]

Commercial narrative consisting of RE valuation and business valuation

No business valuation. That is for accountants. I do real property rights.

 

[App601]

No business valuation. That is for accountants. I do real property rights.

Well you are general certified and can appraise anything It is a matter of acquiring competency in a specific field
And an appraiser can value a business . I did it before using the book that I mentioned before.

 

[Terrel L. Shields]

And an appraiser can value a business

Is more akin to hotel valuation vs SFR. The business value isn't usually wanted by a bank, but private party might want to know. "Residents" are like motel guests and not like renters. Residents can be evicted in most states, renters might not be so easy.

 

[J Grant]

It is not a muti unit property It has only one kitchen. It has 5 bedrooms, one of them is 400 sf and can accommodate 6 people
It has a swimming pool 5 terraces one of them a 2 story terrace ideal for parties
It has an overall construction of over 2000
It resembles a resort located in a neighborhood where typical houses are 900 to 1000 sf
It i being used for short term corporate rentals who come with their entire families
Do you need any more information to realize that this is a commercial property?

Best regards

It is the same property that a few days ago, you were calling a SFR worth no more than 225k with ext obs.

Suddenly, it is a commercial property since the owner is using it for STR.?? It is the SAME property as before you learned this !! It is a larger-than-typical area SFR with a pool . It did not become a commerical property

You can appraise the business value if your client wants it. But the house remains a house, albeit a large one with a resort vibe ( if you say so) with 5 bedrooms

 

[App601]

Is more akin to hotel valuation vs SFR. The business value isn't usually wanted by a bank, but private party might want to know. "Residents" are like motel guests and not like renters. Residents can be evicted in most states, renters might not be so easy.

You may be right on that one That the bank may not finance based on a business value. Agree 100% But maybe a line of credit or short term loan at a high interest rate. However, if the business produces enough, maybe a potential buyer could recover his investment in a couple of years
What disturbs me is an investor trying to get a residential appraisal for a property that is not residential and at a price well above its market value
Best regards

 

[App601]

It is the same property that a few days ago, you were calling a SFR worth no more than 225k with ext obs.

Suddenly, it is a commercial property since the owner is using it for STR.?? It is the SAME property as before you learned this !! It is a larger-than-typical area SFR with a pool . It did not become a commerical property

You can appraise the business value if your client wants it. But the house remains a house, albeit a large one with a resort vibe ( if you say so) with 5 bedrooms

I already accepted that I made a mistake in posting a thread BEFORE inspecting the property .Please don t bring this issue again
As for your statement that a house is a house How would you have answered the question on the first page that asks Is the present use its H & B use?

 

[J Grant]

I already accepted that I made a mistake in posting a thread BEFORE inspecting the property .Please don t bring this issue again
As for your statement that a house is a house How would you have answered the question on the first page that asks Is the present use its H & B use?

My post was not to point out your mistake ( I never cared about that)

My point is that the house is still the same house, whether it is vacant, occupied by an owner, or used for Airbnb/STR.
It does not become a "commercial property" simply becauwe someone rents it STR.

An appraiser can value the STR lease income if they want. And if that type of property is in demand for STR use, it is baked into the price. But it remains a SFR. HBU is residential. STR is still residential .