Out of Option, Need Help!

[Zoe]

from the listing

"This nearly 9 acre property has a lot of features that make this the perfect place for someone who loves to work with horses and loves to work from home! The 1st Floor of the home features an open kitchen with a Family Room, Living Room, Full Bath, Laundry & Enclosed porch. The 2nd Floor has 4 bedrooms with a large Master Bathroom, walk-in master closet, Sitting Room off the Master with a deck and a 2nd Floor balcony. There is a 60'x30' multi use barn that was solidly built by Stoneburner, and is ready for the next visionary to come in and use it as it fits their needs. Another barn is an indoor riding arena set up great to show and ride, or can be used for storage. The farm has 10 different pasture areas that are fenced, an outdoor riding arena with an observatory, stable barn and tack rooms, run in shed, and a 40'x60' indoor riding arena. This setup is great for someone wanting to board horses, train horses, or to have an equine therapy operation at which is what this setup was used for."

OK, why is it "residential"? It is mixed use - agri, commercial AND residential by any measure.

That tells me that big building with offices has a bathroom. The horse stable has water to it.

 

[Zoe]

I can't imagine a welder having subdivided areas like that. But I don't know the welding business.

I am lost, but if there were that many cubicles (let's say). They were not there for no reason. People have to go potty.

Before you heated and cooled it, you would put a potty in. Common sense.

 

[Dublin ohio]

from the listing

"This nearly 9 acre property has a lot of features that make this the perfect place for someone who loves to work with horses and loves to work from home! The 1st Floor of the home features an open kitchen with a Family Room, Living Room, Full Bath, Laundry & Enclosed porch. The 2nd Floor has 4 bedrooms with a large Master Bathroom, walk-in master closet, Sitting Room off the Master with a deck and a 2nd Floor balcony. There is a 60'x30' multi use barn that was solidly built by Stoneburner, and is ready for the next visionary to come in and use it as it fits their needs. Another barn is an indoor riding arena set up great to show and ride, or can be used for storage. The farm has 10 different pasture areas that are fenced, an outdoor riding arena with an observatory, stable barn and tack rooms, run in shed, and a 40'x60' indoor riding arena. This setup is great for someone wanting to board horses, train horses, or to have an equine therapy operation at which is what this setup was used for."

OK, why is it "residential"? It is mixed use - agri, commercial AND residential by any measure.

It's a marketing schpiel. Nothing more, nothing less and the buyer it drew does not intend to use it for any of the above. Except a home based business that could be run out of an extra bedroom, finished basement or a finished garage. How many listings have I seen where they say "Nice den that could be used for a home office". Does that make it mixed use. Many of the rural properties around here are marketed with similar verbiage. Nice 1200 sf outbuilding that could be used for this, that or the other. Does that make them "mixed use". Would you call a property with an outbuilding that a small landscaping contractor stores his equipment in "mixed use" BTW the OP already said that most truly commercial uses are conditional.

 

[Zoe]

It's a marketing schpiel. Nothing more, nothing less and the buyer it drew does not intend to use it for any of the above. Except a home based business that could be run out of an extra bedroom, finished basement or a finished garage. How many listings have I seen where they say "Nice den that could be used for a home office". Does that make it mixed use. Many of the rural properties around here are marketed with similar verbiage. Nice 1200 sf outbuilding that could be used for this, that or the other. Does that make them "mixed use". Would you call a property with an outbuilding that a small landscaping contractor stores his equipment in "mixed use" BTW the OP already said that most truly commercial uses are conditional.

MV is not based on one buyer and one seller. Remember that.

 

[Zoe]

MV is only value definition that requires H&B use analysis as far as I know. I could be wrong but........

 

[Terrel L. Shields]

The improvements are specialized for a horse operation. And the other improvements are a large shop building. HBU, as found on a form, only determines if it is worth more vacant or improved. Obviously, it is worth more as is. But the ideal improvement may not be a horse arena barn, who knows? Clearly, (again think HBU) what was the PAST use? What is the most PROFITABLE. And using as a horse training operation might well be just that which is the maximally productive use. It is not merely a residence or a house.

 

[andrew81]

Based on the photos provided by the original poster, in my market, I would say the most likely buyer is residential.

We can discuss any value and number of uses. It really comes down to:
(a) what are the likely uses for the property
(b) if there is more than one use
- which use (or competing uses) will result in the highest value
- and then
(c) based on the use, who will be the likely buyer

Knowing the answers to A, B, C will tell you what kind of sales to use as comparables.

In two minutes, a local experienced appraiser can understand the highest and best use and correctly solve the valuation problem.

 

[Tiffany Gibbons]

30 year. No points. origination fees are standard. I suspect they will sell the loan.

I think we'd all like to know what happened on this one. How did the AMC finally handle it? As the closing was supposed to be last week.

 

[djamesgoodwin]

I think we'd all like to know what happened on this one. How did the AMC finally handle it? As the closing was supposed to be last week.

Funny, I just logged in to see if there were any more replies.

Current status: I pressured the lender to get the AMC to use a local appraiser and pay a 'real' and legitimate amount to appraise. They agreed, however the lender changed the terms based on the first appraiser's HBU analysis, requiring an even larger downpayment. So....I changed lenders to a local lender that uses local appraisers. Appraisal fee will be higher, of course. But we're still getting that together. Our contract was extended, naturally. I'll report back as to what happens.

 

[The Bob]

Technically we are supposed to do the H&B use first since that will determine the comps we use (i.e. a tear down with all value is the land, etc...) That's why it's the first analysis on the 1004. In this case I would probably want to see who is buying these type properties and how are they then being used to confirm the H&B use.