PushinValue
Member
- Joined
- Nov 28, 2011
- Professional Status
- Certified Residential Appraiser
- State
- California
conventional purchase
2.5 acres (cannot be split)
3000’ main home
1000’ 1 bd 1 bath home
Zoning allows two homes
2 addresses
1 set of utilities
Can be and is rented
Land value 250-300
Most value is in the land plus main home (650-750k total value)
Second home contributes roughly 75k
The property is clearly not an investment property due to minuscule ROI. I can’t imagine even 1% possibility an investor buys this property due to being located in a high value semi rural part of town.
I thought this was a simple HBU analysis.... SFR w adu due to a significant portion of the value being in the main home and land. 5 comps, 3 SFR and 2 main homes with ADUs (main homes roughly 2500-3000’ with second homes of 800-1200’.
Lender comes back and says “investor wants this on 2-4 unit 1025. I state simply, this is a single family w ADU. Any “duplex” or investment property in this market are on lots under 1/2 acre. Review appraiser disagrees because “second home can be rented and a second residence is permissible”.
Do I need to elaborate further? What points am I missing ?
I tried to explain over half my comps are sfrs (because that is what is most similar to). My estimate is 90% owner occupied within the market for similar properties due to price point...
Help me see what I am missing (if I am missing something in my analysis).
2.5 acres (cannot be split)
3000’ main home
1000’ 1 bd 1 bath home
Zoning allows two homes
2 addresses
1 set of utilities
Can be and is rented
Land value 250-300
Most value is in the land plus main home (650-750k total value)
Second home contributes roughly 75k
The property is clearly not an investment property due to minuscule ROI. I can’t imagine even 1% possibility an investor buys this property due to being located in a high value semi rural part of town.
I thought this was a simple HBU analysis.... SFR w adu due to a significant portion of the value being in the main home and land. 5 comps, 3 SFR and 2 main homes with ADUs (main homes roughly 2500-3000’ with second homes of 800-1200’.
Lender comes back and says “investor wants this on 2-4 unit 1025. I state simply, this is a single family w ADU. Any “duplex” or investment property in this market are on lots under 1/2 acre. Review appraiser disagrees because “second home can be rented and a second residence is permissible”.
Do I need to elaborate further? What points am I missing ?
I tried to explain over half my comps are sfrs (because that is what is most similar to). My estimate is 90% owner occupied within the market for similar properties due to price point...
Help me see what I am missing (if I am missing something in my analysis).