Doozie of an assignment

[c w d]

Good luck Mike. This sounds like a tough one. I hope you're billing hourly and not settling on a fixed fee. There is no way to gauge the time and depth required to complete an assignment like this upfront. You may have to do analyses for multiple areas in order to determine a contributory value.

We completed a doozy a couple of weeks ago. Had I known then what I know now I would not have agreed to assist my employer for the fixed fee he decided on charging and he agrees with me. In doing the research and documenting the analyses we filled up two folders both of which are approaching a couple of inches thick.

 

[Mike Boyd]

Good luck Mike. This sounds like a tough one. I hope you're billing hourly and not settling on a fixed fee. There is no way to gauge the time and depth required to complete an assignment like this upfront. You may have to do analyses for multiple areas in order to determine a contributory value.

We completed a doozy a couple of weeks ago. Had I known then what I know now I would not have agreed to assist my employer for the fixed fee he decided on charging and he agrees with me. In doing the research and documenting the analyses we filled up two folders both of which are approaching a couple of inches thick.

I am charging and he has agreed: $400 for a basic report PLUS $100 per hour for any consultation. I probably quoted too low of a fee for the basic because I now think there is sufficient data to demonstrate the value of the elaborate granny unit. Depends on what the city says and I'm not going to do anymore work on it until I do the inspection and pick up the check for the BASIC work.

 

[Mike Boyd]

Can they subdivide??? If not I suggest they just all move in there and be happy together in their lovely new homes!

No, they cannot subdivide. Yes, too bad the family cannot make a mutual agreement.

 

[Nate2]

I was bored today and scanned the Santa Rosa zoning ordinances; I know 2 different dwellings on the same lot are allowed via secial permit, but no mention of whether that 2nd unit could be rented. My interest is peaked due to my wife's interview with Medtronic in Santa Rosa last week.....we may need a place to say!!!

 

[Mike Boyd]

I was bored today and scanned the Santa Rosa zoning ordinances; I know 2 different dwellings on the same lot are allowed via secial permit, but no mention of whether that 2nd unit could be rented. My interest is peaked due to my wife's interview with Medtronic in Santa Rosa last week.....we may need a place to say!!!

The subject is in the City of Windsor which is adjacent to Santa Rosa. However, I think they have adopted the COUNTY zoning ordinances. There were other circumstances that existed wherein the city allowed a larger than would otherwise be allowed granny unit. Future research will be necessary.

So, you might be moving to Santa Rosa? Or would this be a temporary assignment for your wife? Medtronic seems to be a good company. I remember when they first started but it was another name then.

 

[Nate2]

So, you might be moving to Santa Rosa? Or would this be a temporary assignment for your wife? Medtronic seems to be a good company. I remember when they first started but it was another name then.

They got back to her very quick and told her they thought she would get bored....she is currently in hospital administration and wants to get into clinical research...it is a drastic change, they didn't want to go through the relo process and then have her quit. They also have a presence in the Boston area, so we'll wait and see. We got married in Calistoga, if we ever HAD to leave New England wine country would be our #1 pick!

 

[aussie ken]

Somewhere, at some point in time, a property similar to your Subject sold. Such a scenario has likely been repeated multiple times.

An opinion of MV can be developed but I would suspect that the research might involve a considerable amount of time and effort.

And, as Greg offers, I, too, suspect that $25K for the legally permitted unit is probably a wee bit on the conservative (aka, "unrealistic&quot side of things.

Politically this is a great answer. And Mike I envy you as this assignment offers the opportunity to do what all appraisers are trained to do .......to enquire and generate a logical train of thought and method. I would suggest approaching this problem on a "practical appraisal basis" using a well illustrated, individual, speaking style report. What I'm suggesting is a that although sales evidence is limited or Nil your years of experience enable you to express a practical method to a possible range of values. This is not perfect but you need to think outside the box. For example a summation approach of land and insitu depreciated value of all the improvements could be derived and against this generate a capitalized rental approach. These two approaches will generate differant figures. As an experienced appraiser it would be quite correct and proper to present these two results in your report and to then interpolate between them to select a single Market Value. The initial assessment of the rear Granny Flat only adding $25,000 to the overall value has to be seriously questioned. Not because the Granny Flat has cost $300,000 but because the Granny Flat is almost the same size as the existing main house. And in effect the property is offering two houses on the one block. Sure the market value won't double with the Granny Flat but logic alone would indicate it would certainly be greater the the ~8% increase noted by the 1st appraiser. Good luck Mate I look forward to reading your postings on how it went