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FHA - Storage Sheds

jnjappraisal

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Certified Residential Appraiser
State
Wisconsin
I have been an FHA Appraiser for awhile now (I am a WI Certified Appraiser) and I have come across different opinions on exterior sheds, etc. I recently inspected a home with a large amount of storage sheds, all in pretty poor shape. For a normal appraisal, I'd just consider them personal property and give them no value but I am curious your thoughts on such a situation with an FHA appraisal. Would these sheds needs to be removed due to their condition? To paint a picture for you, this appraisal is for an estate sale, where the son is buying from the estate of his father. His father worked on cars and has a tons of "junk" stored in the rear yard. There are tons of abandoned cars, car parts, etc. stored in and around about 4 personal property type sheds that are just not in good condition anymore. They could almost be considered unsafe, as if you had kids playing around these areas, there would definitely be ways to get hurt (but those exist in wide open spaces.. lol). Anyway I am just looking for your thoughts since I have had different people say different things on this issue.

THANK YOU!
 

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Terrel L. Shields

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May 2, 2002
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Certified General Appraiser
State
Arkansas
The one building appears to be attached and is not "personal property" in my opinion. Contributory value is zero however considering it is not in very good shape. And, I would be reluctant to require it be painted in light of the fact it is worth so little... Value in use at best not value in market.
 

jnjappraisal

Thread Starter
Freshman Member
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Joined
Dec 2, 2012
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Certified Residential Appraiser
State
Wisconsin
The one building appears to be attached and is not "personal property" in my opinion. Contributory value is zero however considering it is not in very good shape. And, I would be reluctant to require it be painted in light of the fact it is worth so little... Value in use at best not value in market.
None of these are attached... the one wood square one actually looks like an ice fishing shanty.
 

jnjappraisal

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Dec 2, 2012
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Certified Residential Appraiser
State
Wisconsin
None of these are attached... the one wood square one actually looks like an ice fishing shanty.
to be more clear, I'm talking about the small wood one.. the larger wood building with the red sign on it was a house at one time but is now a storage shed. I wouldn't require painting for that.. thankfully there is no flaking paint.
 

Mr Rex

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Jan 12, 2004
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Certified Residential Appraiser
State
North Carolina
The large one is likely considered part of the Real Estate regardless of "attachment" it can't be easily removed from the property. All improvements on the site are required to meet FHA MPRs.
 

jnjappraisal

Thread Starter
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Dec 2, 2012
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Certified Residential Appraiser
State
Wisconsin
The large one is likely considered part of the Real Estate regardless of "attachment" it can't be easily removed from the property. All improvements on the site are required to meet FHA MPRs.
I hear ya but in fact that property was moved there from the neighboring property as the previous owner was given it to be used for storage so he moved it over there to his property.
 

Carnivore

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North Carolina
The large one is likely considered part of the Real Estate regardless of "attachment" it can't be easily removed from the property. All improvements on the site are required to meet FHA MPRs.
Boy o boy that owner is not going to like that mpr stuff
 

jnjappraisal

Thread Starter
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Dec 2, 2012
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Certified Residential Appraiser
State
Wisconsin
Boy o boy that owner is not going to like that mpr stuff
Luckily he is a really nice guy and he was already planning to do a lot of the things that will be on the list, so is already working on a lot of it. Whew!
 

Sid Holderly

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Jun 16, 2005
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Indiana
Why did someone recommend an FHA loan for this? For this, the MPR stuff will likely be a big stumbling block.
 

Mr Rex

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Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I hear ya but in fact that property was moved there from the neighboring property as the previous owner was given it to be used for storage so he moved it over there to his property.
They could have moved the house there too and set it on concrete block piers etc. See what I'm saying...:shrug:
 
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