Can I do this appraisal?

[sputnam]

I am Certified Residential and am allowed to appraise 1-4 family homes. In the area I live now 1-3 family homes are listed on the tax records as residential while 4 family homes are listed as commercial.
Can I appraise a 4-family property even if it's listed as commercial apartments on tax records?

If you are competent, or willing to do what is needed to become competent, to complete the assignment... then.. yes, you are allowed. What the tax man calls the property may, or may not, have anything to do with what the property is from an appraisal perspective.

 

[Tom D]

It's probable what i call 'blanket' zoning, where a street/sts get the same zoning. The zoning people are to lazy to pick out other individual uses. Usually, commercial zoning uses permit residential uses along side without zoning approval. It's a matter of, is there anybody that would do commercial in that building. Long ago in this old city, every corner property was a mixed use. They have been mostly converted to multi family. No prospects for a commercial tenant. The current use is the highest and best use.

 

[Zoe]

I think I have done an 8 unit before using smaller unit sizes to compare to it. I didn't do direct capitalization on it.

I have done many multifamily ranging from 200 to 500 units. But you have to do direct capitalization or discounted cash flow on the income stream then depending on the situation. But the market rent comes into play then and the income cap approach becomes the primary indicator of market value.

Just study the 1025 you use on a duplex. You will see what I am saying on a duplex, triplex, or quadplex.

Don't try to stay within 10%/15%/25% on the 1025 in sales comparison approach.

 

[J Grant]

1-4 unit properties are identified as within the scope of the res license.

 

[Tom D]

Yea. and also funding. Anything over 4 units, and/or with a commercial use is considered a commercial loan. But commercial zoning doesn't mean the highest and best use is a commercial use.
When this city changed all the zoning codes, it blanketed streets not considering what was there, but with the previous zoning it was a residential zoning.

 

[Dublin ohio]

Yea. and also funding. Anything over 4 units, and/or with a commercial use is considered a commercial loan. But commercial zoning doesn't mean the highest and best use is a commercial use.
When this city changed all the zoning codes, it blanketed streets not considering what was there, but with the previous zoning it was a residential zoning.

At one time the major city in my area had 4 unit properties classified as residential. They decided to change 4 unit to commercial and it had nothing to do with zoning. They were still in areas zoned as 4 family residential. It did create a headache for appraisers because the auditor's records treated them as commercial and the info on the properties went from residential info to commercial info. Sketches changed, no more unit counts. No real residential info on the property cards

 

[Zoe]

I am Certified Residential and am allowed to appraise 1-4 family homes. In the area I live now 1-3 family homes are listed on the tax records as residential while 4 family homes are listed as commercial.
Can I appraise a 4-family property even if it's listed as commercial apartments on tax records?

I have done many on Long Island where the tax records show 4 families as residential. Since I moved 10 years ago I have done many 2-3 family appraisals but have always turned down the 4 family jobs. Work is scarce so I thought I would ask.

What did you do?

I know you can do it based on the statement you made. I gave you some hints on the 1025.

 

[Zoe]

I have a feeling you felt scared. If you have been there 10 years and did many 2-3 unit properties.

The 1025 form is intended for 1-4 units. Once you cross that 4 unit barrier, it most likely needs to go to narrative appraisal report.

Not saying you can't do narrative on 1-4 unit. You very well can for your client.

 

[Zoe]

Don't get me going on forms and intended use and user. I can get ugly.

Joan Trice won't come to my rescue.

 

[StreamlineOhio]

Yes