mix use appraisal question

[AMappraising]

does anyone know how to proceed with a appraisal where there is a barber shop on the first level and the two top levels are residential.
what form to use?

Any help would be really appreciated

 

[Doug Meyer]

Sounds like a narrative assignment.

 

[Edward OConor]

does anyone know how to proceed with a appraisal where there is a barber shop on the first level and the two top levels are residential.
what form to use?

Any help would be really appreciated

First I would check with your state board. In New York ANY commercial use requires a General.

Second I would check with the lender to see which form they want it on. That said, I have seen them done on a 1025.

 

[The Warrior Monk]

I don't use preprinted forms on such an assignment. Strictly MS Word, and MS Excel if I need spreadsheets.

 

[Mike Boyd]

There are lots of new developments like that nowadays. First, you have to check with the planning Department. They may have special requirements. On one I did the zoning regs stated in no uncertain terms that the project and individual buildings were required remain residential in nature. AND, that of the two residential units, the owner/operator of the lower commercial unit had to be owner occupied. Furthermore, the 2nd residential unit had to be reserved for an EMPLOYEE of the business. Therefore, it could not be considered as a rental unit. I did the report on a 1004 and considered the other two units as ACCESSORY units. My report was accepted by the lender with no problems. The loan did not go through as the buyer did not qualify.

 

[Joe Booth]

How are you at Income Valuation of Small Mixed-Use Properties?.... Narrative.

 

[Joe Booth]

You should also perform an analysis of the commercial lease.

 

[Restrain]

If it's going through the secondary market, the GSEs will buy the loan, but there's specific language. Check AllRegs or links through the specific sites.

 

[GCJim]

Most likely a narrative report with SC & Income Approaches, possibly a Cost Approach as well, done by word processor and spreadsheets. I have seen them done on form 71-B. Will also most likely need a certified general license.

 

[The Bob]

You might want to check with your E&O carrier and make sure you are covered for this. My E&O ins does not cover any commercial work.