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Mixed Use

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CKrinsky

Freshman Member
Joined
May 29, 2003
Professional Status
Certified Residential Appraiser
State
New York
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

Freshman Member
Joined
Jan 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
If it is zoned commercial & you are a residential appraiser..can you do this appraisal???
 

CKrinsky

Freshman Member
Joined
May 29, 2003
Professional Status
Certified Residential Appraiser
State
New York
My understanding is I can appraise it if subject use is more than 50% residential.
 
Joined
Jan 28, 2003
Professional Status
Certified General Appraiser
State
North Carolina
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

Freshman Member
Joined
May 29, 2003
Professional Status
Certified Residential Appraiser
State
New York
Is there any situation where a residential appraisal can appraise a mixed use (commercial/residential) property?
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
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
 
W

walt kirk

Guest
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.
 
Joined
Jan 28, 2003
Professional Status
Certified General Appraiser
State
North Carolina
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

Freshman Member
Joined
May 29, 2003
Professional Status
Certified Residential Appraiser
State
New York
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.
 
Joined
Jan 28, 2003
Professional Status
Certified General Appraiser
State
North Carolina
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.
 
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