Too many units - need a second opinon

[BJ]

I have an atypical assignment in Chicago. Two 2-story buildings on one lot. The front has a first floor apartment, 2nd floor apartment and the basement is finished with a common entry to also be used as an apartment. The rear building is on a crawl set up with two apartments. One on each floor. the rear building has a front enclosed entry that is unfinished and heated. it is where the furnace and hot water heaters are as well as the staircase to go to the 2nd floor. As this is Chicago, all sorts of things like this are out in the wild. I've had the client put this on hold until the City of Chicago came back with a determination. It has come back as three legal units. I was thinking of typing this up with curable functional obsolescence to address converting the rear building to just one unit and to de-convert the basement kitchen. But I'd appreciate feedback.

 

[Terrel L. Shields]

Why create a scenario that does not exist? Value it as what the city calls it. Value the extra as non-GLA storage space or something appropriate for the situation.

 

[Dublin ohio]

Why create a scenario that does not exist?

Isn't that what this is?

Value the extra as non-GLA storage space or something appropriate for the situation.

 

[BJ]

Why create a scenario that does not exist? Value it as what the city calls it. Value the extra as non-GLA storage space or something appropriate for the situation.

That sounds much simpler. Thanks!

 

[Terrel L. Shields]

Isn't that what this is?

Why? Apples to apples. Why create a scenario that is not going to happen?

 

[Dublin ohio]

Why? Apples to apples. Why create a scenario that is not going to happen?

Can you guarantee that your scenario is going to happen? There are 2 apartments in the additional building that exist. We don't know enough to really make it that simple. Either way you have to use a HC

 

[Terrel L. Shields]

Can you guarantee that your scenario is going to happen?

If I am appraising it "as is" then no scenario applies.

 

[Joe Flacco]

You value it as it exists. Not what the city calls it. There are four units. It may or may not comply with applicable regulations.

 

[Overimprovement]

You value it as it exists. Not what the city calls it. There are four units. It may or may not comply with applicable regulations.

Respectfully disagree. It IS what it is zoned for--legally permissible is one of the tenets not only of HABU, but also value. We do not control how an occupant uses space. Many jurisdictions limit living in a basement or cellar. Raise your hand appraisers if you have NEVER once seen someone illegally using a basement space as living area. Did you call it living area? Did you call out the non-conforming use as the occupancy police?

I've seen people living in a shed before. I didn't call that an ADU.

IF zoning says 3 units, appraise it as such, that is what the market will be willing to pay for it.

 

[Overimprovement]

It has come back as three legal units.

^^^This is what 'IS'.