can I do this?

[transformers]

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

 

[Lee Lansford]

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]

Are you in the habit of ignoring line 10 on the 1004 form regularly or just when its convenient?

 

[transformers]

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]

Its all about H&BU.

 

[Rufus]

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]

Just go with the zoning.................

 

[PropertyEconomics]

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]

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]

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.