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9 Bedroom, 4 Bath SFR

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RustNeverSleeps

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Junior Member
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May 15, 2007
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Certified Residential Appraiser
State
Texas
Have an assignment to appraise a 9 bedroom, 4 bath house, owner occupied, 8 rooms rented out, $3600 in rental income, nothing else like it in this residential neighborhood - typical is 3/2 - 4/2.5

Informed lender of the above and said go ahead and do a 1004 SFR.

Anyone come accross something like this?

What about highest and best use?

Haven't inspected the property but if there is more than 1 kitchen (how 10 people could share 1 is beyond me) then not an SFR? What is it?

I'll be getting guidance from my supervisor, but I'm really interested to hear what y'all think. And of course I'll expect the usual trainee lashings :icon_mrgreen:

Thanks in advance!
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I once lived in a 7 br 3 ba house in San Francisco where each room was rented from one of the occupants. We had one kitchen and it worked out just fine. I would never consider the place anything other than a SFR. I think you should reserve your judgement until you inspect the property.
 

RustNeverSleeps

Thread Starter
Junior Member
Joined
May 15, 2007
Professional Status
Certified Residential Appraiser
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Texas
Fair enough Couch. My question then would be, as there are no comprable sales, what to do?
 

Mike Kennedy

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Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
rural, suburban, or urban market? Zoning in effect? Start there.
 

Doug Trites

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Oct 17, 2007
Professional Status
Certified Residential Appraiser
State
Michigan
Do they rent the rooms by the hour?:new_smile-l::new_smile-l:
 

JRS at OBX

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Jun 13, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
How big is the house?
 

David Wimpelberg

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Mar 30, 2005
Professional Status
Certified General Appraiser
State
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What about highest and best use?

That's going to determine how you proceed. Is current use legal? What does the certificate of occupancy say?

Informed lender of the above and said go ahead and do a 1004 SFR.

The lender doesn't get to decide this. If the use is illegal, and/or highest and best use is as a single-family residence (SFR), then you can appraise the property as a SFR.

If the current use is legal, you're dealing with a property that falls under the scope of practice of a general certification (no 1004).
 

RustNeverSleeps

Thread Starter
Junior Member
Joined
May 15, 2007
Professional Status
Certified Residential Appraiser
State
Texas
I thought B&B might be a good use. If they don't rent by the hour :rof:

The GLA is about 2000 SqFt - not out of line for the area.
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Look in other places.

Fair enough Couch. My question then would be, as there are no comprable sales, what to do?
There are comparable sales, just not sales you have found yet. Not every appraisal will have comparable sales that are easy to find, or comparable sales that fit neatly in common guidelines.
 
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