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Home business

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Bamba

Thread Starter
Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I apologize in advance if anybody else asked this question before me (I have a rush report due today and I didn't have time to research all forums...)

So here is my question...subject is a two story dwelling and one of the rooms on the first floor is used as a hair salon by the wife. It's a bonus room off of the family room, with a separate entrance (could be used as a mud room). There is a sign at the end of the driveway that says hair salon, by appts only...it's her home business...zoning is residential...no alterations were made to the structure of the home or to the floorplan or anything...so, if they would move, the new buyers could use this room for whatever purpose they would like...

Does this affect marketability? Could this be considered a commercial property? Should there something be mentioned in the report or I am just gonna muddy the waters...

I appreciate any feedback :)
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Does the Residential zoning allow home based businesses? Some do, some don't.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
And what would a most likely buyer do with the space?

HABU answers the question. Only you can determine HABU.
 

Charles Decker

Sophomore Member
Joined
Nov 16, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
If the HO were to move out, would any damage be caused by removing the items used to conduct this business ? I would disclose this in the report and talk about percieved marketability issues ( if any) and include a photo or two to show what is going on there.

Mr. Rex asked if the Residential zoning allows home based businesses. Well don't we appraisers who work from home have a home based business ? I seriously doubt we have all notified the zoning dept about our doing appraisal work from one of the extra bedrooms.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
If the HO were to move out, would any damage be caused by removing the items used to conduct this business ? I would disclose this in the report and talk about percieved marketability issues ( if any) and include a photo or two to show what is going on there.

Mr. Rex asked if the Residential zoning allows home based businesses. Well don't we appraisers who work from home have a home based business ? I seriously doubt we have all notified the zoning dept about our doing appraisal work from one of the extra bedrooms.

Most appraisers don't have a sign in the yard and cars coming and going all day. :new_smile-l:
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
But .. many lenders will not loan if there's a bidnez use .. had one refuse to continue as the HO was detailing cars in his garage ..
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Mr. Rex asked if the Residential zoning allows home based businesses. Well don't we appraisers who work from home have a home based business ? I seriously doubt we have all notified the zoning dept about our doing appraisal work from one of the extra bedrooms.

My city issues business licenses to approved home based businesses and yes, some types of businesses are excluded. Appraisers and hair stylists are accepted as long as they meet the limits on traffic, parking, etc.

I agree that if the real estate has not been altered as to need a cure, one should report it and consider it residential.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I would appraise it as a single family residential property. If you want to comment on the fact the present owner is conducting a home business do so but it shouldn't affect your appraisal in that you are appraising it as a residence.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
A bonus room with a hair stylist sink. Cool.:new_smile-l:
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Ditto Mike's comments. It sounds like a non issue, unless of course you're the zoning police
 
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