Multi-Family Dwelling or SFR

[Roger Geisler]

I inspected a property that is zoned R3 with a "Use code" in NDC of Multi-Family Dwelling. What is there is actually a SFR with a two car and a single car garage. According to the current owner the single car garage was used by the former owner as a living quarters. As of my inspection it could only be called a garage. It has a garage door, unfinished walls (open studs) and a concrete floor. It seems that I should appraise it as a SFR and use the 1004 form. That's how I think the market would view it. Am I right or wrong?

 

[Marcia Langley]

From your description I'd agree that the outbuilding is not a living unit.

 

[Mike Kennedy]

as long as R3 permits SFR as well as Multi- ..........(verify)

it IS what it IS as of EDA.

 

[Thomas Fiehler]

Roger-Not sure about your location but in Ohio the Use Code refers to the improvements and the zoning is with the lot so the two may, or may not, be the same.

 

[Mztk1]

What is highest and best use? Would it be worth more as a two family? If so, is the amount it is worth more by greater than the cost to reconvert?

If yes, and legally permissible, than it is a two family.

If no, and legally permissible, than it is a one family.

At least, that is how I would likely handle it. But as you know, once you see the house, all bets on these desktop opinions are off.

 

[CCAAMO]

I inspected a property that is zoned R3 with a "Use code" in NDC of Multi-Family Dwelling. What is there is actually a SFR with a two car and a single car garage. According to the current owner the single car garage was used by the former owner as a living quarters. As of my inspection it could only be called a garage. It has a garage door, unfinished walls (open studs) and a concrete floor. It seems that I should appraise it as a SFR and use the 1004 form. That's how I think the market would view it. Am I right or wrong?

Just because the property is or was zoned R3 does not mean it was ever developed or used as multiple units. Sounds like it is a single family home with a garage. Since there is only one legal unit on the property, appraise it as a single family home. Check out the comps in the area as R3 zoing may increase the value if there is room for other units to be legally built on the property.

 

[Roger Geisler]

Thanks all. This is a big help. It is actually worth more as a single unit although there is no pressure from the client either way.
Roger