Non permitted guest quarters

[CANative]

I think you misinterpreted what Lee in LA meant.

 

[PropertyEconomics]

The question is ... Is it not ALLOWABLE .. or does it simply not have a paper permit???

Vastly two different things in my mind and ones that are confused here a lot.

 

[CANative]

Thanks PE. Finally someone "gets it."

 

[Jason S]

If a room is not permited that means there is no C of O. If there is no C of O then it is not a legal structure. If it's not a legal structure how can you give it value? Greg is this what you mean?

Is this question too Zen?

 

[CANative]

No. That's not what I mean.

 

[PropertyEconomics]

If a room is not permited that means there is no C of O. If there is no C of O then it is not a legal structure. If it's not a legal structure how can you give it value? Greg is this what you mean?

Is this question too Zen?

Jason ... lets try this .... your statement above .. "you give it value". WE dont give things value .. the market does. How about you do your job and find if there are other sales with non "permitted" improvements on them and see if they had a market value. If they did then the ones you are appraising most likely do as well.
I realize no paper permits are a big deal in your market .. in mine no one gives a crap honestly ... but be that as it may .....

GO TO YOUR MARKET FOR THE ANSWER ... its not your opinion that counts honestly .. its that of buyers and sellers.

Learn grasshopper .... Learn.

 

[CANative]

PE... The flaw in your advise is that it is telling someone to go to step 3 in the assignment before completing steps 1 and 2. You can't find "comps" until you know what you have.

 

[PropertyEconomics]

PE... The flaw in your advise is that it is telling someone to go to step 3 in the assignment before completing steps 1 and 2. You can't find "comps" until you know what you have.

I thought we told them what they had .. HAHAHAHAHA...

Your point is very well taken.

 

[Carl Jackson]

Thank you for all the responses. It is in Hollywood, and I believe it adds value, but I have found no comps with similar separate guest room. I have not inspected this property yet. So if I did an adjustment it would be across the board. The home is worth over a million around 1.1 not sure about value on the guest room with no comps to support adjustments.

 

[CANative]

Question: What is the definition of "Transaction Value?"
Answer: The answer, or definition, can be found in federal and state laws and regulations, which all licensed appraisers are required to read, but which are difficult to understand.

First, transaction value limits pertain only to federally related transactions, that is those transactions involving the Office of Thrift Supervision, Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Controller of the Currency, and the National Credit Union Administration. These organizations regulate most lending institutions.

Second, the transaction value varies from assignment to assignment depending on the intended use of the appraisal. In most assignments, the transaction value is the loan amount, but not always. For example, if the assignment involves estimating the value of a foreclosed property, the transaction value is the market value.

We recommend that appraisers subject to limits imposed by their license level expand on their intended use statement when the appraisal is to be used in a federally related transaction. The statement should qualify the limitation of the transaction value (e.g., the intended use is not for loan amounts, or extensions of credit, of a million dollars or more).

Scope of Practice for an appraiser licensed at the AL level:

May appraise non-complex 1-to-4 unit residential property up to a transaction value of $1 million, and complex 1-to-4 unit residential and all non-residential property up to a transaction value of $250,000.

What is a complex property? Your subject sounds like a complex property (no comps in addition to some possible legal issues).


Be careful.