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Fire Damage

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wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Ok here is a fun one figure that I will probably turn it down for a number of reasons. This is a REO property as well.

The subject is a fire damaged duplex found out when going out to the inspection. Exterior boarded up windows doors etal. Exterior on all sides damaged from the fire. Came out the roof in some areas (natural skylights B) ) . Interior gutted almost entirely to studs plast walls gone chared studs. Electrical service disconected. City has placed a do not enter sign on outside due to safety. Also posted lean for property.

Now the problem the subject is high bank sound waterfront with good view property. Also is flag lot so directly in front is commercial property, next door on both sides across street. The zonning is General Business development.

So to me this is no more than a vacant piece of land with a cost to remove the current structure. The highest and best use of the property is commercial vacant land with some sort of commercial building or as additional parking space for one of the existing business (poor parking access for two of the business).

Am I way off on this and this becomes a commercial appraisal for the vacant land? IMHO this being a commercial piece of property with to me the HBU is that it is beyond my appraisal license experince. I am contacting the company tomorow and they will probably not be real happy with me on this but to me a commercial property is a commercial property and beyond me and my license level.

Any other thoughts on this one? If you require more information please let me know. I think I have added everything else that I can add.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
The way you describe it, I agree and think you are headed in the right direction.
But when you call to describe what you have, and the highest and best use issue, I'd bet ya' that everything you said goes in one ear and out the other. You'll know when they ask "but can't you do it on the URAR??" :rolleyes:
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I agree it's a land appraisal as it sits. HOWEVER, the dependent issue is whether the existing home can be rebuilt. IF it can be rebuilt, then you may have an issue to deal with. However, if the home cannot be rebuilt, that solves the issue quite easily.

Roger
 

Damon Young

Sophomore Member
Joined
Jun 15, 2003
Even if it can be re-built, you must consider the cost to do so and subsequently analyze highest and best use. I find it very doubtful that a duplex would be the result.

With the work you have put in, you may find a commercial appraiser to partner on the report for a split fee. I used to charge $600-800 for a vacant land commercial appraisal (summary narrative).

Damon
 
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