'As is' with accessory unit

[AnonApprsr]

What makes it a unit other than the stove?

 

[PropertyEconomics]

Perhaps a check with the Zoning / Building authority can answer all the questions. Honestly its not what WE call a kitchen or an additional unit .. its what the Zoning authority says comprises each ........

 

[hastalavista]

What makes it a unit other than the stove?

Maybe how it is being used and how it is configured?

 

[AnonApprsr]

If you say so. A unit is short, to me, for "LIVING UNIT" just so ya know. You can't live in a house without a way to make food. You'd starve!

 

[hastalavista]

If you say so. A unit is short, to me, for "LIVING UNIT" just so ya know. You can't live in a house without a way to make food. You'd starve!

Ok. So you have three units. You take the stove out of one.
Now you have a two-unit property?

 

[AnonApprsr]

I dunno, that's up to the appraiser.


"The Subject appears to have been used as an unrecognized three unit property, the 3rd floor has what appears to be a kitchen but there is no stove and is not considered a living unit as a result. Market reaction is perceived to consider this as having contributory value to a property and was dealt as such in the Sales Comparison Approach."

 

[Kevin Mc]

Here's my opinion: The suggestion offered by the client is not part of the solution to the appraisal problem you are asked to solve. If an as-is appraisal is required, then the subject needs to be appraised as-is. :new_smile-l:

Correct. If they want the acessory unit removed than it is "subject to". If they want it "left alone" than just report what is there. The C2C is UW speak for "I have no idea how the investor will handle this and I don't want to (or am not allowed to) make such a determination" but they will everything they can to make it your resonsibility. Not your problem.

 

[hastalavista]

I dunno, that's up to the appraiser.


"The Subject appears to have been used as an unrecognized three unit property, the 3rd floor has what appears to be a kitchen but there is no stove and is not considered a living unit as a result. Market reaction is perceived to consider this as having contributory value to a property and was dealt as such in the Sales Comparison Approach."

Annon-

I'm sure you will correct me if I am wrong, but the above sounds like the appraiser is trying to call a 3-unit property a 2-unit property because a $600 stove is missing. It gives this space contributory value (as what, I don't know) which tells me this space (finished, I presume) cannot be counted as GLA or GBA to one of the other units.

That's not disingenuous (I'm just short of using the term "misleading")?

Because, again, if the above practice is acceptable, then removing the stove will change any non-permitted living unit into something else.
I'm sorry, I don't buy that and I don't recommend that.

 

[AnonApprsr]

It can be contributory value and GLA obviously. Perhaps it is accessed via the 2nd unit. Most unrecognized units may not even have the necessary egress to be a unit, let alone the stove. It's a case by case basis. Say an attic had once been part of the 2nd unit, but had a kitchen added to add another rentable "unit." Literally, the removal of the stove makes this not even close to a living unit. It's a question of function and the market reaction to such. If it's a 3 floor flat style multifamily and it's always been an unrecognized 3 unit property, than it may not be feasible. Again, how can it be a 3 unit property if it's illegal to do so? It comes down to what the town/city will do about it, and how the market reacts to it.

There's probably thousands of these things, most often found in a basement of say a 3 family or 4 family property. Once you remove the stove from the unrecognized basement unit, provided that it can be accessed via the interior of unit 1, then it logically becomes part of the first unit. There may be further market reaction to the potential cost of removing cabinetry. Of course, in reality, there is a contribution of the illegal unit because the new owner will likely put the stove back in and illegally rent it himself. If the market is happy with that, and "everyone does it" how can the appraiser force it not to happen? Why would he? We're not the permit police, we're not an assessor. We are valuing the property based on the market. The market obviously reacts to the "unit" and it's our job to understand that, and discuss the facts as they are in the appraisal report.

 

[CANative]

We used to have a mortgage broker client who did a lot of business with us. His name was Jaime. We called him "Slimey Jaimie."

He was always trying to slide 5 and 6 unit multi-families by us by saying one or two of the units were used as offices, storage units, other creative things.