commercial or residential?

[realbiz]

This property is located in unincorporated county officially zoned Rural Living. It is low-density res. from all the sources I have seen. The site is 2.5 acres with fencing and a 2500 sq ft. permitted steel building. In the building is 800 sq ft of office space/living space with a full kitchen/bath.Upstairs is 2 areas that look like they could be small bedrooms or office space.
One lender told me the construction of the building makes it a comm appraisal and loan. Another told me that due to the zoning it must be a residential appraisal and loan. Original owner used it to house race cars, never got around to building the house to go with it.
Buyer wants to use it as a business but all transactions are online so not really like a store per say.
Any ideas on which way to go? Currently owner is carrying the loan for up to 2 yrs until financing can be secured.
Thankyou for your help!m2:

First, OP's name is Oak Hills Financial. Why would an appraiser use a lenders name? Second, he is talking to two different lenders on the same property. Which one ordered the report? Third, why is a trainee talking to a client on a property of this type? Fourth, he states the owner is carrying the loan up to 2 years so again why is he talking to lenders? I could go on and on with this post, does anyone else see the writing on the wall. My response is to talk and learn from your supervisor if you have one.

 

[Oak Hills Financial]

Thankyou all for your quick responses!
The supervisor makes some points that you all have made-but basically says they wouldn't touch this one. Her background is only residential.

The RL zoning is pretty broad from what I can tell. The building is only 1 year old and never used prior to this sale. It is on septic which the entire neighborhood is also.

The buyer is already in place with the owner carry, but making pay-off in that short of time isn't feasible. Trying to get financing is what makes this thing ping-pong back and forth as it seems no one can make-up their minds as to the fit.

The permits seem to state single family residential however, the original owner was an architect and it was his intention to build a large house next to this structure. It did say Improvements R3- under description.

In my opinion it seems to me that if the owner will carry for another year and a half shouldn't the buyer try to secure financing then? If the market rebounds up at all the property no matter what they classify it as would have more value than right now. What do you think?

Again-thankyou very much for all of your input on a weird property!!

 

[The Warrior Monk]

In my opinion it seems to me that if the owner will carry for another year and a half shouldn't the buyer try to secure financing then? If the market rebounds up at all the property no matter what they classify it as would have more value than right now. What do you think?

There is a good chance rates will be higher in a year and half than they area now.

 

[Colorado Guy]

Horse with no name!

wrong posting - sorry!

 

[Baron Von Squidlo]

Sounds like a nonconforming SFR. I doubt a lender will lend on such a property, but that's not your problem. The loan agent seems to be grasping at straws submitting that to underwriting. If you find a similar comp, which you probably wont, its going to be a difficult home to prove value. Using the Market Approach you likely wont be able to extract a market reaction for the design and quality of construction.