How can I appraise a home that is part of an affordable housing program?

[George Hatch]

"Regulatory " related factors into HBU analysis under "legally permissible", just like an HOA or access easement or other legal encumbrance. It is one of the property's attributes.

An example: I appraised a religious use property that was on an R4 zoned lot that would otherwise have allowed 60 units. A lot of those properties do get puchased for their land value, and I originally thought that was how this property would go. However, I came across a door on the 2nd floor that had FCC placards indicating to a cell tower. It turns out they had a cell tower lease and the antenna was on the roof. As a legal encumbrance that lease effectively precluded redevelopment so that sent me back to valuing that property in the existing religious use instead of the (if permitted) high valued use as multi-family land.

If we're appraising an existing condo that will usually be the ONLY HBU due to the prevailing legal restriction.

 

[Zoe]

"Regulatory " related factors into HBU analysis under "legally permissible", just like an HOA or access easement or other legal encumbrance. It is one of the property's attributes.

An example: I appraised a religious use property that was on an R4 zoned lot that would otherwise have allowed 60 units. A lot of those properties do get puchased for their land value, and I originally thought that was how this property would go. However, I came across a door on the 2nd floor that had FCC placards indicating to a cell tower. It turns out they had a cell tower lease and the antenna was on the roof. As a legal encumbrance that lease effectively precluded redevelopment so that sent me back to valuing that property in the existing religious use instead of the (if permitted) high valued use as multi-family land.

If we're appraising an existing condo that will usually be the ONLY HBU due to the prevailing legal restriction.

When you get into places of worship, it can get complicated. Places of worship move sometimes. The congregation grows and they move locations and sell. Steve Gaines just went into hospice. He was pastor of Bellevue Baptist Church in Cordova. He followed the footsteps of Dr. Adrian Rogers. Bellevue Baptist Church is one of the largest Christian Churches in the South. The congregation split somewhat after Dr. Rogers passed. Steve Gaines is in hospice and has kidney cancer.

The Church started in downtown Memphis and relocated. I have took a class under Dr. Rogers. We had a little exchange on divorce and I tried to explain that in old testament, Moses allowed divorce for the woman that had no other way to survive. Moses did not allow divorce for the man who was making the living. Dr. Rogers had a daughter that got divorced due to adultry. Divorce from adultry was allowed for the woman, not the man. The woman had to move on with her life regardless of who committed adultry.

 

[Zoe]

When you get into places of worship, it can get complicated. Places of worship move sometimes. The congregation grows and they move locations and sell. Steve Gaines just went into hospice. He was pastor of Bellevue Baptist Church in Cordova. He followed the footsteps of Dr. Adrian Rogers. Bellevue Baptist Church is one of the largest Christian Churches in the South. The congregation split somewhat after Dr. Rogers passed. Steve Gaines is in hospice and has kidney cancer.

The Church started in downtown Memphis and relocated. I have took a class under Dr. Rogers. We had a little exchange on divorce and I tried to explain that in old testament, Moses allowed divorce for the woman that had no other way to survive. Moses did not allow divorce for the man who was making the living. Dr. Rogers had a daughter that got divorced due to adultry. Divorce from adultry was allowed for the woman, not the man. The woman had to move on with her life regardless of who committed adultry.

 

[Zoe]

I divorced my wife and remarried her. Go figure.

 

[Zoe]

To make it simple, adultry is forgivable sin. Moses allowed divorce for adultry not for the guilty party, but for the person to move on with their life. It doesn't matter who committed the adultry. The person has to move on with their life. Jesus forgave a harlot they wanted to stone. King David committed adultry and murder. He paid for it the rest of his life. One of his sons tried to kill him and he lost the child he had from adultry and murder.

 

[Zoe]

Cost approach is not bad option on place of worship. I have appraised many. I got close with a real estate agent that sold many. Good friend to have. It helped .

I got to meet some great people in the process. I got close with some loan officers that like to finance them and that helped to.

 

[Tom D]

I have done plenty affordable homes. But i had big city comps. You can normally find them by going MLS 0-1 on age, and then look for the 'why is this new house selling for so low'. Then you look at public records and you see it's not a normal seller name. Here, the city gives, or FHA gives, the property to a non profit community development group. You can see the price doesn't come close to the construction costs. And sometimes you wonder why the ghetto location, which tells you affordable housing. And the construction quality is usually builder grade.

Look at this thread poster. If there are no comps, then everybody has a different opinion on how to do it. And when everybody has a different opinion, then you might not have a good answer for the way you did it because they don't like your answer, based on their opinion. Again, don't do appraisals where there are no comps. But, many old timers here will do it figuring they know better.

I would make some reasonable excuse to not do it. You don't survive the long term here by doing stupid.

 

[Zoe]

I have done plenty of them. But i had big city comps. You can normally find them by going MLS 0-1 on age, and then look for the 'why is this new house selling for so low'. The you look at public records and you see it's not a normal seller name. Here, the city gives, or FHA gives, the property to a non profit community development group. You can see the price doesn't come close to the construction costs. And sometimes you wonder why the ghetto location, which tells you affordable housing. And the construction quality is usually builder grade.

Look at this thread poster. If there are no comps, then everybody has a different opinion on how to do it. And when everybody has a different opinion, then you might not have a good answer for the way you did it because they don't like your answer, based on their opinion. Again, don't do appraisals where there are no comps. But, many old timers here will do it figuring they know better.

I would make some reasonable excuse to not do it. You don't survive the long term here by doing stupid.

Yeah but see the bank has income figures. You don't do income approach on a place of worship. That would be bad.

However, agents and bankers know the income numbers. You are privy to it.

If you have a religious bias, you don't do it. I believe a person should be able to worship whatever. If they want to get into religion with me, ,I can tell them about Jesus and what I believe.

I focus on real property but if they want to bring up religion, I am all in.

Everybody worships something.

 

[Zoe]

I have no clue on the subject property if it will even go GSE.

I have heard arguments on both sides. I still don't know. I am not the appraiser.