- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
Bear with me, I rarely run into this problem. I was asked to appraise a home sale of a 1945 home. This is a little old couple that has lived in this home since it was built. When I pulled up in front of the property, my "spider sense" started tingling. This is the only residence on this side of the street. Every property to the north and south on the entire block is newer and commercial property. When they first moved in, they were the only house on the street. Across the street is a subdivision, but none of the homes face the street. It is becoming a high traffic street because of the commercial properties. One side of the home has a professional office and the other side has a nursery and landscaping business. My problem, to me, the highest and best use would be a commercial property. I checked with the city and this lot is zoned residential. Every other lot on this block is zoned commercial. I asked the nice lady at the zoning office if there was any "grandfathered" zoning for this property and a re-sale would require commercial use. She stated that it was currently zoned "residential" as each lot is zoned separately and any change would required applications at their office. Now, I don't know the buyer or his intentions, the mortgage company says it is going to be an investment property. I would bet that he intends to make it a commercial property, but I have nothing to support this assumption, but logic and "spider sense". The home looks every bit of 57 years old and the old couple does still live there. I am looking for options to handle this. Can I state the highest and best use as commercial if it is zoned residential? Am I just over analyzing? The loan officer thinks so, but her commission motivates her brain. The property is not worth much ($69,000 contract price) and I am not sure I will get that value, but similar residences in residential areas sell from $80-90,000 in average to good condition. Of course, I have a little old couple that want to move out to country that inhibits my view point. Any helpful advise would greatly be appreciated. I am sure I left some important data out, so please ask me to clarify anything that is not clear. Oh, of course, I have no other sales that are surrounded by commercial properties.