Commercial Use in Residential Property

[Meandering]

Go back to the OP. SFR with no physical modifications, presumably held as a Fee Simple interest. That's what they're appraising in their assignment, not the non-realty rights which may or may not exist on site.

I find the implication that a CR is arbitrarily assumed to be incompetent and unqualified to perform an HBU analysis on a property that could go either way to be condescending and insulting. And wrong from at least a conceptual perspective. What will matter in this situation is competency, not the license. I provided the example of the CG who had the license but screwed up the competency angle on the HBU analysis of such a property in post #5 of this thread, so that just demonstrates the point.

IMO every CR should already have or be working toward the technical competency to perform an HBU analysis at this level. If a CR isn't already there then nothing is stopping them from getting there.

Physical modifications?
Do they apply to zoning codes?
Can you put a drive-through window on the side of your home and have it still be a home?

There was no advice nor references to the OP to verify with the zoning office if there was a variance for the subject property, or if the subject property is grandfathered to the current zoning, or even to read the current zoning to verify the commercial use is allowed.


The ability - via permits, licensing, zoning variances, zoning grandfathering, to be MORE than just a home, needs to be considered in;

All the markets in which the legally permitted uses, competes - not limited to only those in a residential zoning district.


I provided the State's web link for the OP to verify any facility license/or not, to operate the commercial operation.

And look at all the blow back, from advising that verification.

This entire commercial in a "home" story is starting to be very reminiscent of the
"Sure you can do a Restricted Use Report for Res Lending you just have to 'word' it correctly" game.


Why do so many advocate for NOT
doing the research, like the client is not going to come back with a stip asking if the "business" is "legal"?


Something else going on???????????


.

 

[George Hatch]

So many? I'ma fact check you on that whopper.

Nobody has advocated not doing the research or not valuing the property based on its *most profitable use*. Least of all me. This is a strawman of your own making.

It is both possible and somewhat common for an existing residential use to still be a permissible use for a commercial or office or even (to a less common degree) on an industrial zoned parcel. Moreover, it is also not uncommon for an SFR to be worth a lot more (or less) than a similar sized office or storefront with the similar location. That is a question to be answered, not an assumption for an appraiser to make. That's how that CG screwed up that other appraisal I was talking about.

They can stuff 25 bunkbeds in an SFR and rent the beds out by the hour, but that doesn't make that house a love hotel. If/When they leave it's still just a house.

 

[ml2007]

M,
You indicated this a is a refi. Have you contacted your lender/AMC about the 'use' of the subject property as a adult care home? What does your engagement say regarding use of the property. The lender will probably have an issue if this round peg is trying to be put in the square hole of a conventional refi. By all means, disclose the current use. I'd think it would be up to the lender to what extent they want the property appraised as an adult care home and whether they feel your licensing is appropriate.

I sure did notify the client immediately, they are not aware off business use, so I stopped working.

 

[Elliott]

M,
Good boy. The smart thing to do. Be sure and charge them for the inspection and your work up to this point.

 

[Meandering]

They can stuff 25 bunkbeds in an SFR and rent the beds out by the hour, but that doesn't make that house a love hotel. If/When they leave it's still just a house.

And with a fence around the yard,

it could still just be a prison, if that is what the county has issued a license for it to be used as.

And you know what happened when the bank moved out of it's building? Oh, it became a subway sandwhich shop with a vault.

And you know what happened when ****** move out of the white house??

It became a scripted vaudeville theater.

.

 

[Mark K]

And you know what happens when the adults move out of the adult day care that has not been modified? Nothing. Its still an SFR.

All of this chattering and imaginary scenarios trying to deflect from the real issue, still no explanation of how any of this affects the MV of the home. Maybe because there's no rational argument that supports such a baseless assertion?

OTOH, if someone would present a logical, coherent explanation of exactly how the MV of the home is affected, we, the poor ignorant majority, could benefit from this shared wisdom.

And please, no mindless cut-n-paste snippets of some local business regulations, the intellectual limit of one or two local posters; original thoughts and explanations please.

 

[glenn walker]

TRy

And you know what happens when the adults move out of the adult day care that has not been modified? Nothing. Its still an SFR.

All of this chattering and imaginary scenarios trying to deflect from the real issue, still no explanation of how any of this affects the MV of the home. Maybe because there's no rational argument that supports such a baseless assertion?

OTOH, if someone would present a logical, coherent explanation of exactly how the MV of the home is affected, we, the poor ignorant majority, could benefit from this shared wisdom.

And please, no mindless cut-n-paste snippets of some local business regulations, the intellectual limit of one or two local posters; original thoughts and explanations please.

Mark Don't fight it you will not win -Think like jack Nicholson Question : How do women think ? I think of a man and I take away reason and accountability : ) LMAO