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can I do this?

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transformers

Freshman Member
Joined
Apr 3, 2007
Professional Status
Certified Residential Appraiser
State
Texas
was asked to appraise a house that was used as a bed and breakfast six months ago. Owner says it is now his primary residence. He has a homestead exemption according to tax records.

the problem: under the commercial tab on MLS, the property is currently listed.


can I appraise this house as a SFR? (I am not a commercial appraiser)
do I disclose the commercial listing?
and if so, are we required to search each property under commercial to see if there is any past sales/listings?

thanks
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
was asked to appraise a house that was used as a bed and breakfast six months ago. Owner says it is now his primary residence. He has a homestead exemption according to tax records.

the problem: under the commercial tab on MLS, the property is currently listed.


can I appraise this house as a SFR? (I am not a commercial appraiser)
do I disclose the commercial listing?
and if so, are we required to search each property under commercial to see if there is any past sales/listings?

thanks

Based soley on your second question ("do I disclose the commercial listing?"), it is probably best that you decline the assignment. Seriously.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Are you in the habit of ignoring line 10 on the 1004 form regularly or just when its convenient?
 

transformers

Freshman Member
Joined
Apr 3, 2007
Professional Status
Certified Residential Appraiser
State
Texas
im not asking if I should ignore it. I was just asking since it is listed commercially, and I am appraising it residentially.

ok, obviously I include that it is listed commercially...now, can I appraise it as a residential property?

when you do a history search on every subject, do you also check and see if it has a commercial history?
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Its all about H&BU.
 

Rufus

Junior Member
Joined
Apr 3, 2008
Professional Status
Licensed Appraiser
State
Indiana
when you do a history search on every subject, do you also check and see if it has a commercial history?
Well yes, of course. Our MLS has an 'all property types' search. Not only does that include residential and commercial, but vacant land, residential leases and more.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
Just go with the zoning.................
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Most bed and breakfast properties are simply houses with a use permit for the commercial use as a bed and breakfast. If it is not an ongoing enterprise with the current owner, and you would need to make sure the current owner doesnt have a bed and breakfast permit on the property. If not, and the city doesnt have one on the property, I think you can appraise it as a house if all the above is true.
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
HBU that is how to appraise it.

Unless you are going to do a Hypo.

What does your scope of work say and the agreement you have reached in writing with the one who ordered the appraisal?

What does zoning say?

I would think you would also need to take into consideration the list history how long has it been listed, for how much. Cause if your appraisal comes in $150K above what it has been list at for the past five years you should know you have a problem?
 

EVAUSA

Junior Member
Joined
Jan 26, 2008
Professional Status
Certified Residential Appraiser
State
California
When I search MLS, I dont narrow it down to SFR, I search ALL records by the address. If the subject's current use is residential (not being used as a B&B) and zoning allows residential, you may be able to prove a case for SFR and appraise it that way. You will have to disclose the listing and spend some extra time on the H&BU analysis. I had one recently that was an AG zoning, a house on 20 acres, 10 acres were income producing avocados. I quoted my client $50 to do a H&BU analysis that, if it concluded residential, I'd apply toward the cost of the appraisal.
 
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