Non Functional Garage

[kristofer]

I inspected a home with a two car detached garage that is non functional. The garage door will not open and close, it is missing part of the roof and side walls. Do I report this as having a two car garage and comment that it is non functional or do I write in the report that it has no garage? How do I adjust on the grid? Any help is greatly appreciated!

 

[Judy Whitehead (Florida)]

Doesn't sound like anything that I would want my car or things parked inside of......I think I would not give any value due to the issues it has and simply mention in the report that it is on the site but was given no value because.......etc.

 

[CURT VAN HOOSER]

I inspected a home with a two car detached garage that is non functional. The garage door will not open and close, it is missing part of the roof and side walls. Do I report this as having a two car garage and comment that it is non functional or do I write in the report that it has no garage? How do I adjust on the grid? Any help is greatly appreciated!

It is there so you have to deal with it. Contact your client. Typically, in my area, a garage is expected therefore it would most likely be included with a cost to cure the deficiencies. However, I also work in areas where a garage is not always expected. In such areas, there may not be a distinguishable difference in value between properties with garages and those without. In such areas, you would weigh the cost to cure against the cost to demo/remove.

 

[Rick Neighbors]

Just tell the truth. Determine the cost to cure. If garages are typical for the area you will have to make a market reaction adjustment. That's where you file full of paired sales comes in handy.

Rick

 

[Webbed Feet]

I inspected a home with a two car detached garage that is non functional. The garage door will not open and close, it is missing part of the roof and side walls. Do I report this as having a two car garage and comment that it is non functional or do I write in the report that it has no garage? How do I adjust on the grid? Any help is greatly appreciated!

Kristofer,

Welcome. Kindly state your client type, the intended use, and any details regarding the SOW that affects secondary market requirements so that you can be answered.

Webbed.

P.S. Since when is it an appraiser's place in the scheme of our duties to "Give" or not give value to any certain items? It is the market that gives or doesn't give value, not real estate appraisers. Cost to cure what? .... And if garages are atypical for the area you STILL have to determine market reaction!

 

[Mztk1]

Sounds like a functional inadequacy problem. The Appraisal Institute's Appraisal of Real Estate gives ways of determining a functional inadequacy adjustment that are from the text book point of view acceptable when you do not have market evidence to support a reaction.

Without seeing it my gut feeling on it would be it is superior to a two car carport but inferior to a workable two car garage. But of course, you would know best having seen it.

 

[Farm Gal]

Hi Kristofer:

In addition to all of the above feedback you may need to consider communicating to your cleint the garage condition particulalry if they are a repeat cleint who you want to keep!...

At least make a roundabout 'general' inquiry as to the lenders preference for handling 'health and safety concern' issues... (Did you get paid yet?)

Is this thing closer to falling down (needs to be removed) or closer to being repairable? In any case I'd consider making my analysis based on market value of 'as-is'(repairable) or subject to removal of the hazard! Checkbox the puppy if you don't want to make the call!

 

[Mike Boyd]

Sounds like a garage I rebuilt that was on family property. A giant eucalyptus tree fell on it. First I had to remove the tree, then remove the damaged lumber, then replace and build a new roof structure. That was almost 50 years ago but to this day, I am very proud that I could do this by myself with no previous building experience. I was young enough in those days that I suffered no permanent injuries when I fell off the roof! LOL

 

[kristofer]

Kristofer,

Welcome. Kindly state your client type, the intended use, and any details regarding the SOW that affects secondary market requirements so that you can be answered.

Webbed.

P.S. Since when is it an appraiser's place in the scheme of our duties to "Give" or not give value to any certain items? It is the market that gives or doesn't give value, not real estate appraisers. Cost to cure what? .... And if garages are atypical for the area you STILL have to determine market reaction!

It is a refi for a lender through an AMC.

 

[Joanne Rauenzahn]

I personally never liked to see a cost to cure as I knew my investors would require it either be fixed or demolished. I would call the lender and let them know the situation and see which way they wanted it - most likely subject to repair or subject to demolishment. But that's just my 2 cents!