Home business

[Bamba]

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]

Does the Residential zoning allow home based businesses? Some do, some don't.

 

[Ken B]

And what would a most likely buyer do with the space?

HABU answers the question. Only you can determine HABU.

 

[Charles Decker]

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]

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]

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]

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]

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]

A bonus room with a hair stylist sink. Cool.:new_smile-l:

 

[George W Dodd]

Ditto Mike's comments. It sounds like a non issue, unless of course you're the zoning police