Commercial Use?

[Pamela Biggers]

I have inspected a property where the owner is running a dog kennel out of the home. From the information gathered from inspection, owners comments, and the Internet the conclusion is the owner does grooming and boarding of dogs. The property is zoned SFR that allows for some commercial uses but it appears that the property does not meet the minimum requirements for a kennel and so far it appears that this may be illegal use. I have a call to the county on that. I also have called the client and am waiting to see if they just cancel this due to the commercial use. I have a feeling they will cancel.

I am interested in thoughts and opinions about this. My question is.... At what point does this become a commercial assignment? The property without the kennels would be SFR and that would be HBU as improved. The only thing the owner has structurally changed for the kennels is the laundry room and family room (garage enclosure). There are many dog doors (in block construction) leading outside and then there is a special wash tub in the laundry room. There are chain link kennels, but these can be easily removed. The smell of the chemicals may also be of concern as it may be difficult to remove. The chemicals bothered me to the point of physical reactions.

My feeling is that this will end up a cancelled assignment, but I do want opinions. By the way, there was another appraisal done on this property about a year and half ago. The appraiser did this as an SFR on the new 1004 and just mentioned that the lady housed dogs on a voluntary basis for local dog rescue societies. This is not true currently (don't know if it has changed or not) but she was even trying to get me to bring my dogs there if I ever go out of town and her phone number comes up under a business listing.

What would you do? Obviously, another appraiser didn't let it slow him down. The other appraiser has the same license type as mine.

Just looking for opinions...I have NOT said that I am going to continue with the assignment so do NOT say this is beyond my abilities. I know my limits and have no problems canceling an assignment when faced with complex or commercial issues. I would rather keep my license then risk loosing it over one fee. Just because something may be beyond your license does not mean that you cannot be interested in how this would be treated by one with the experience and authority to complete the assignment.

 

[Otis Key]

I have inspected a property where the owner is running a dog kennel out of the home. From the information gathered from inspection, owners comments, and the Internet the conclusion is the owner does grooming and boarding of dogs. The property is zoned SFR that allows for some commercial uses but it appears that the property does not meet the minimum requirements for a kennel and so far it appears that this may be illegal use. I have a call to the county on that. I also have called the client and am waiting to see if they just cancel this due to the commercial use. I have a feeling they will cancel.

I am interested in thoughts and opinions about this. My question is.... At what point does this become a commercial assignment?

Let me guess, her sole income is from this. Not "hubby/wife" income - HER income. IMHO, it already has transgressed the line.

The property without the kennels would be SFR and that would be HBU as improved. The only thing the owner has structurally changed for the kennels is the laundry room and family room (garage enclosure). There are many dog doors (in block construction) leading outside and then there is a special wash tub in the laundry room. There are chain link kennels, but these can be easily removed. The smell of the chemicals may also be of concern as it may be difficult to remove. The chemicals bothered me to the point of physical reactions.

And don't you think it might bother others?

My feeling is that this will end up a cancelled assignment, but I do want opinions.

Walk away!

By the way, there was another appraisal done on this property about a year and half ago. The appraiser did this as an SFR on the new 1004 and just mentioned that the lady housed dogs on a voluntary basis for local dog rescue societies. This is not true currently (don't know if it has changed or not) but she was even trying to get me to bring my dogs there if I ever go out of town and her phone number comes up under a business listing.

And many years ago stock brokers jumped out the 12th floor windows too. Would you?

What would you do?

Already said walk away.

Obviously, another appraiser didn't let it slow him down. The other appraiser has the same license type as mine.

Just looking for opinions...I have NOT said that I am going to continue with the assignment so do NOT say this is beyond my abilities. I know my limits and have no problems canceling an assignment when faced with complex or commercial issues. I would rather keep my license then risk loosing it over one fee. Just because something may be beyond your license does not mean that you cannot be interested in how this would be treated by one with the experience and authority to complete the assignment.

 

[Mike Boyd]

I appraised a property where the owner ran an appraisal business out of a back bedroom. In the bedroom he kept two computers, several cameras, 4 filing cabinets a large desk and it was a mess. His car is parked in the driveway and it has a sign on it that says Boyd Real Estate Appraisers. Otherwise, it is a lovely home. Must I do this as a commercial appraisal? Zoning is residential but home businesses are permitted.

I also did one where a general building contractor ran his business from. Regular house in a residential neighborhood. Home office plus piles of extra materials, a cement mixer, many bundles of roofing materials. Should I have appraised that as commercial property.

My attorney has the entire downstairs as her office. Is that also commercial?
3 or 4 clients a day come to her office.

Etc, etc, etc.

Now, about the lady that boards a few dogs.................

 

[Pamela Biggers]

I do agree with you Mike.

At this point though, I have found out that it is illegal to run this type of business on this property. In your instances, was the use illegal? I run my business out of my home, but it does not affect the overall structure, affect the home in the view of a buyer, nor is illegal use. In the case of my subject all three are a concern.

 

[Vegan702]

Is it in a residential area? The way you make it sound there are numerous dogs there and if so then I would believe that if it is was illegal the city/county would have been out there already and shut it down due to the noise, chemical smells, etc. It is not like a dog kennel is the most quiet business to run. Did you ask for a business license?

 

[Mike Boyd]

If the dogs were moved out and the place cleaned up, would it still be a kennel?

I still think it's residential. There might be a loss of appeal due to its current use and it might need some repairs. But, with the information you have given us, it remains residential. (IMNSHO)

 

[Jungle Boy]

I'm leaning in the direction of what Mike has offered.

The only question I'd have is, are the chemicals leaving a residue which could be unsafe or maybe just a nuisance to clean up, down the road.

 

[Pamela Biggers]

I agree with you Mike. After the confirming with the county that the property could not leagally be used as a kennel (the zoning does allow for commerical uses but must have ten or more acres for this use and the subject only has 1.5) then the influence of the kennel is only that of any structual or functional problems that would influence the market. If the kennel had been legal than it would have influenced the property, would have been outside my license, and I would have had to decline the order.

Of course, the lender did cancel as soon as I let them know the zoning does not allow the type of business being run on the property. Thanks for all the responses. I guess I just had one of those moments where I was questioning myself even though I new how to handle the situation.

 

[Jerry Bone Jr]

Pamela, are the "dog kennels" real property?