NonConforming Apt Zoned Comp versus Residential Zoned Comp

[sputnam]

If comparables meeting the reviewer's claim about the Lender's guidelines don't exist in your market... there is nothing you can do to make him/her happy.

I agree with George Hatch. Support your adjustments or lack of adjustment for the issue the reviewer raised. Show him or her how you got to your conclusions.

 

[George Hatch]

I'd still be interested in knowing what town this property is located in.

 

[J Grant]

The two A10 zoned properties used as comps in the appraisal are both 7,000 sf lots approx. 60'W x 117'L, both are currently improved with an SFR. An A10 zoned property requires a minimum lot size of 10,000 sf and minimum of 70' wide frontage. After taking int account of 15' frontyard setback and 5' sideyard and 5' rearyard setbacks, the buildable area is 50'Wx97L' = 4,850 sf. Current zoning requires on site parking facility at least 1 parking stall per 2 units, which reduce the buildable lot area even further. . Even though the grandfathered Apartment zoning allows high density apartment improvements, it does not necessarily mean the highest and best use is an apartment building because it must meet the HBU's 3 creteria of legally allowable, physically possible and financially feasible. My question is when can an appraiser justify to use an Apartment zoned property to value a residential zoned property and how to justify it?

i would almost never do it - apartments are one thing SFR or duplexes ( still not sure what yours is ) are another thing. Older sales than six months of course we can use them !! so make a time adjustment if need be - same for a further distance comp, use the location adjustment indicated (if there is one)

 

[BRCJR]

"The reviewer responded that using different zoned comps are not in compliance with Lender guidelines."

It may be their specific policy but, it is not a regulated item. Ask them to provide you the source for their position.