Converted Garage

[notsmith]

What is the difference between the gain in living area and the loss of the garage (including the cost to convert?) HBU

Thanks. I was mulling it all over in my sleep (I'm thinking that is a hazard of being an appraiser).

I can address HBU... I can address value. Do I make an extraordinary assumption that Twp will not require new owners to rip out finished space?

 

[notsmith]

What is the difference between the gain in living area and the loss of the garage (including the cost to convert?) HBU

Thanks. I was mulling it all over in my sleep (I'm thinking that is a hazard of being an appraiser).

I can address HBU... I can address value. Do I make an extraordinary assumption that Twp will not require new owners to rip out finished space?

"If the loss of garage impacts value more than the gain in living area,"

Then the HBU is to reconvert the new living area back to a garage.

If there needs to be a replacement garage in order to be a legal, conforming use then that's additional HBU analysis.

In terms of HBU couldn't it just be that since it is NOT legal based on no permit (not that it is illegal zoning because it is legal to convert) It would be Highest and best use is to convert back to garage - although the cost to convert back WOULD NOT, in this case, be reasonable. Shoot, my head slightly spinning again.

 

[notsmith]

What is the difference between the gain in living area and the loss of the garage (including the cost to convert?) HBU

There are use permits and there are building permits. Almost all construction stuff needs a building permit. Not all construction stuff needs a use permit.

here was no building permit pulled from Twp...I'm 99.9% sure that zoning allows this type of conversion and that we don't need a use permit. So for arguments sake we are saying that zoninig it is legal, BUT no building permit from Twp. I don't intimately know this TWP, but I know some others and they would make you rip it out....Would they make a new buyer rip it out??? no clue. I'm thinking extraordinary assumption for value that includes this as GLA is necessary. Can I put HBU as with a garage, but value without...seems to make sense as I write it.

 

[CANative]

and they would make you rip it out...

I find that difficult to believe in the literal sense. If it's a legal use then why would they make you rip it out except as punishment of some kind? Isn't it more likely they would make you apply for a permit retroactively, make you pay the permit and inspection fees and a penalty, and then require inspection to make sure it meets building codes?

 

[notsmith]

I find that difficult to believe in the literal sense. If it's a legal use then why would they make you rip it out except as punishment of some kind? Isn't it more likely they would make you apply for a permit retroactively, make you pay the permit and inspection fees and a penalty, and then require inspection to make sure it meets building codes?

We have one city and one twp in this area who are mean...and yes more as punishment. I've heard the horror stories first-hand. However, I've never known anyone who bought a property that wasn't properly permitted that had to rip anything out.

 

[CANative]

However, I've never known anyone who bought a property that wasn't properly permitted that had to rip anything out.

For discussions like this we have to be more precise about the words and phrases used. What do you mean, exactly, by "properly permitted?"

 

[J Grant]

="CANative,]"If the loss of garage impacts value more than the gain in living area,"

Then the HBU is to reconvert the new living area back to a garage.

You are trying to make this into a HBU issue and it is not. We can't make a property owner reconvert their living area back to a garage because the house will be worth more with a garage. For an "as is" appraisal, if market analysis shows there is a loss of value of X $ due to loss of garage utility despite gain of living area, then the subject is worth X $ less. .

If there needs to be a replacement garage in order to be a legal, conforming use then that's additional HBU analysis.

That's a different matter.

 

[CANative]

You are trying to make this into a HBU issue and it is not. We can't make a property owner reconvert their living area back to a garage because the house will be worth more with a garage.

Why do you write things like this when you don't have to?

 

[debbiejohnson]

I need some help regarding building permits- SFR converted from Commercial Building, owners added two bathrooms, kitchen, bedroom (no walls) that was not permitted. City changed zoning from Commercial to SFR approx. 1 year ago, the owners have moved out and it is under contract to the current tenants. Do I need to pull permits if I am appraising "as is"

 

[Terrel L. Shields]

Do I need to pull permits if I am appraising "as is"

Why not? Is it legal or not?

owners added two bathrooms, kitchen, bedroom (no walls) that was not permitted.

Looks like an issue to me.