not permitted but does it add value?

[Restrain]

If you call, be very hypothetical about your subject. Do not inquire about the specific property, etc. You can be sued for disclosing priviledged information (the inspection) to a third part (the city). This can get much worse if they suffer monitary damages from your phone call.

 

[Fred]

If you call, be very hypothetical about your subject. Do not inquire about the specific property, etc. You can be sued for disclosing priviledged information (the inspection) to a third part (the city).

Priveleged information? Priveleged?

Well, I agreed with your first answer. If it can be transferred and the market will pay for it, it has value.

 

[JSmith43]

I understand and agree with the argument that if a property with a bandit rental unit will typically fetch more than a similar property without a bandit unit, then it adds to MV, given the MV definition we use in these lending transactions.

Does it bother anyone that when we (as appraisers) perform the highest and best use analysis, we are limited to what is legally permissible (or likely to be allowed via pending zoning change-reasonably probable approval)?

Perhaps H & B use analysis should be limited to what is legally permissible as well as what it is reasonably probable for market participants to sneak in under the radar of planning/zoning?

 

[Webbed Feet]

I have nonpermitted family room addition. I had a class and the instructor stated just because it is not permitted does not mean it has no value.

Then I ran it by some other appraisers and they told me not permitted, no value.

Is this what was taught in the past? Is there any website that has a good rationale?

thanks

Ms. Borne,

Please explain to me how you can state that an addition has no value without invoking a hypothetical condition it does not exist. Or proving it has no value per the market.

Webbed.

 

[Webbed Feet]

What country in what legal system do we live in? Next I'll see posts claiming pedophiles will sue people for damages for reporting them for raping children.

Webbed.

 

[jay trotta]

Your question I believe has a dual answer;

a contribution to value for an income producing property is not the same as a single family non permitted use.

if the city or town has been "informed" by a third party, it could actually Cost your Client money for the "Non Permitted Use", by way of brining it into Conformity.

So...does it really add Value....maybe !

Also, "Privledged Info".....that may fall onto the "Confidentility" issue more than anything else, along with Your agreement to follow the GLB Act noted on your order form in the form of a "Private Property Issue". After all rembrandt, if you weren't allowed into & on the property by the Owner, you would have never known of the default. Ownership rights of interest to allow or not to allow......alot don't let Tax Assessor's into the property or on it.

snowglobe enterprises......somewhere over da rainbow........ROFL

 

[Carnivore]

If it can be transferred and the market will pay for it, it has value.

No argument from me(although I am not sure how one can transfer an illegal agreement(lease)), but the trick is proving it.

Come to think about it in the eyes of the law there would not be an enforceable lease, thus there are no lessee/lessor rights. Since we appraise real property rights I dont see how you could include that leasehold portion of the value in the assignment results.

Now if your appraising a property that happens to have a finished basement as part of the improvents!

 

[loug56]

When you venture outside your scope of work, you open mouth and insert foot. Calling in a violation opens the door to alot of liability as you just made an assumption based on your opinion or expertise. Sounds a little like an invasion of their privacy. Is the addition typical of the market area and if so, what is the market generally paying for a similar addition? Can it be contributory value and not included in GLA?

 

[J Grant]

Even FHA handbook talks about what is typical for neighborhood adds value...I would not call zoning and report an address. That is way outside your scope as an appraiser.

I always ask the owner, did you pull a permit? If they say no, or they bought the house that way ( with illegal addition) I simply disclose it in my report. I will give the addition value, if the market seems to indicate it has value ( most of the times it does) then I will state though the addition was done in a workmanlike manner, appraiser cannot verify if it was permitted, and is making the extraodinary assumption that the addition was not permited. Let the lender decide whether or not they want to lend on it. That is not our responsibility.Our repsonsiblity is to come up with a value for the subject. If the market /paired sales shows value for additions/garage conversions etc, most of which were not permitted, then they have value. But we also need to disclose, so lender can't come back later re if a permit was pulled. Many counties simply increase the owner's property taxes once they discover additions to a home.

A statement like this can be made " family room does not appear to be permitted/appraisers cannot verify if a permit was pulled. Appraiser is giving the family room value on the report, as these types of additions on older homes are typical for the area, and paired sales show buyers are paying more for homes with extension/additonal living area added to home."

Again it is what is typical for the area. If your neighborhood is older homes, not high income demographic with lots of cars in driveways and you observe many additions/garage conversions, and some of the conversions look home made/not to code, you might make the assumption they were not permited) sometimes you can tell from property tax records if the taxes are too low for the amount of sqaure feet) But if you are in an area of newer or more expensive homes where it would be typical to get a permit pulled and your subject does not, that can influence your decision whether to add value for it .

 

[Riick]

What country in what legal system do we live in? Next I'll see posts claiming pedophiles will sue people for damages for reporting them for raping children. ....Webbed.

What a question <lol>
You must not remember the plea for lenience by the two Brothers in California who murdered their parents....?
"Be nice to us, we're Orphans!"