Mixed Use

[CKrinsky]

My subject is in a C1/Commercial zone; it consists of three units, one of which is being used as a doctor's office; the other two units are residential apartments. Subject is in zoning compliance as a legal non-conforming use per the city. In performing a residential appraisal, must I use mixed use comps or can I use multi-family residential comps as well?

 

[moecraig]

If it is zoned commercial & you are a residential appraiser..can you do this appraisal???

 

[CKrinsky]

My understanding is I can appraise it if subject use is more than 50% residential.

 

[Serge Paquette]

If you are a residential appraiser, you cannot appraise the entire property, because it's not 100% residential.

Can get a commercial appraiser to help you and she/he must sign also.

 

[CKrinsky]

Is there any situation where a residential appraisal can appraise a mixed use (commercial/residential) property?

 

[wyecoyote]

Connie,

Depends on the level of licensure/certification. A certified appraiser can appraise up to $250K value of non residential property. But what you have is a mixed use property that should be completed on a narrative format not as a 1004 or 2055. Then the competency issue arrises are you competent in completing a mixed use property commercial/residential. This may be one that if you have never completed something like this before to have a commercial appraiser do. Perhaps co op with one to get the experience.

Ok I need speel chekcer.

Ryan

 

[walt kirk]

Connie,
Whether you can do a mixed use property with a residential license depends on your state law and who the intended user of the report is (is this a federally related transaction?). Unless your are experienced in this type of report you shouldn't attempt it alone. Do the appraisal with a commercial appraiser, you won't make much money but the experience will make you a better appraiser.

 

[Serge Paquette]

Ooooops,

Looks like I got it wrong when I said a residential appraiser couldn't appraise commercial property.

I'm a commercial appraiser. Maybe it's that little protectionist part of my brain that made me say that. I apologize.

 

[CKrinsky]

Thanks for all your response. I've done mixed use previously on multi-family forms; a certified USPAP instructor advised me I could do it if the predominant use was residential. But if anyone knows the answer to my original question, it would be very helpful. If it's a three family where one unit is being used as a doctor's office, must I only use comps with similar use or can I use multi-family residential comps. Thanks.

 

[Serge Paquette]

If the highest and best use is mixed use, then you shouldn't rely solely on multi-family comps.

If the highest and best use is 100% multi-family, then you should go straight multi-family comps and account for conversion to multi-family... and more.....

If the highest and best use is 100% commercial, you shouldn't use multi-family comps at all and account for conversion to commercial... and more.....

Of course, determining highest and best use will require consideration of commercial and multi-family values along with the other possibilities which arise in your analysis.

I would avoid using a prepackaged form appraisal.