Not Urgent - Just important

[Mountain Man]

If the town home S/D site is developed, you can appraise it "pad ready". But if they want a subdivision analysis, you've got to have plans and specs of all the townhomes... you can't sell off individual lots in an attached home community.

 

[PropertyEconomics]

If the town home S/D site is developed, you can appraise it "pad ready". But if they want a subdivision analysis, you've got to have plans and specs of all the townhomes... you can't sell off individual lots in an attached home community.

Yes you can. Zero lot line developments occur all the time, and while it is true most are specifically tied to a design style of home, the plans and specs of the homes are not necessary for a subdivision analysis.

 

[PropertyEconomics]

Thanks for the input.

Further info, this is an in-house deal for a small bank, with a owner with excellent credit.

There are other "townhouses" on this same street, that would be almost an exact duplicate of this property.....probably where the owner got the idea.

This is a university town with an abundance of rental properties, and more need for the same.

The bank wants to know the "true" value of the owners holdings. Rent house on small lot is not a problem. The 8 platted lots, which have the correct zoning in place already, is the question. Right now it's a large vacant lot.....but that's where the H&B issue comes up. And, the use as town house lots would render the most return for the investment for this small area. The townhouses that are on the same street went quick! So this owner probably thinks he will have the same sucess, and I am inclined to belive he is correct.

I've lived here for over 40 years, and watched this small town grow. It's been interesting. I've been on our local Community Development Corp. for 6 years and am now it's President, so between that and my appraisal business, I have kept my finger on the pulse so to speak.

Right now I'm trying to determine the best way to handle the platted lots, and provide the best legal appraisal that I can for my client. And, as I am a Certified Residential, I may refer this one to a General. The income potential is not as important to me as doing the right thing!

Thanks again,
Rick

Rick .. based upon this post, and I thank you for all of the clarifications, I believe the best approach, if they want to know the value of his holdings, would be to prepare two appraisals on this "property". One on the rental unit and one on the "subdivision". It would be cleanest and not confuse the two, very separate properties you have to consider.
I admire your willingness to refer this to a general, however, why not ask a general if they will help you in the preparation of the report. You get some very good practical experience, you get to provide your client with a report that is best prepared to show value, and you get to make some money while you learn. Sounds like a win win to me.
Again, best of luck in this assignment.

 

[Rick Neighbors]

Good advice!

I appreciate all the responses!

I think that the advice offered by PropertyEconomics is good advice. I will contact an Appraiser that I know who is a Certified General, and ask for his assistance on this one.

Rick

 

[Bama Bayou]

Rick .. based upon this post, and I thank you for all of the clarifications, I believe the best approach, if they want to know the value of his holdings, would be to prepare two appraisals on this "property". One on the rental unit and one on the "subdivision". It would be cleanest and not confuse the two, very separate properties you have to consider.
I admire your willingness to refer this to a general, however, why not ask a general if they will help you in the preparation of the report. You get some very good practical experience, you get to provide your client with a report that is best prepared to show value, and you get to make some money while you learn. Sounds like a win win to me.
Again, best of luck in this assignment.

This is how I got into commercial appraisals. By the way many CG's do not do houses except when it involves an assignment with multiple parcels with both commercial and residential uses (estate, tax planning, etc). Most have a residential friend they farm it out to. Make yourself that friend and learn something about the commercial side at the same time.