Out of Option, Need Help!

[Mike Ault]

In suburban areas of Texas, probably 25 % of properties on site sizes of 1-10 acres have been improved with similar shop buildings, a smaller percentage would also have pole barns, pens, corrals and other livestock-related amenities similar to yours. The typical buyer for those properties are residential buyers, and no appraiser in this market would classify them as commercial simply because somebody could conceivably operate a some sort of home-based business out of them. The existence of accessory buildings commonly found in suburban neighborhoods does not mean that those properties are viable commercial entities. I have a shop building and accessory structures on my property, and currently operate an appraisal business from it. My neighbor down the street built a large shop building in the rear of his, and is currently operating a wedding ceremony business from it. Neither of those "businesses" will endure beyond current ownership, and the next owners of these properties will be utilizing the accessory structures to store recreational vehicles or throw keg parties in them. I agree with your HBU analysis, and my advice would be to keep the AMC busy looking for another appraiser that agrees with it as well.

 

[Red Flint]

Consider hiring an appraiser to look at the property, assuming you can get access. You may pay twice, but information gleaned from an independent local appraiser could benefit you and be worth the price. Usually, a seasoned appraiser would want 2-3 weeks to deliver the report, which affords enough time to adequately analyze use, and also conformance. It would be worthwhile to know whether you can rebuild after catastrophic fire, or expand the existing building footprints. One source is appraisalinstitute.org >find >search by zip code. Call around, you may find additional local lender information through their experiences.

 

[Dublin ohio]

It is mixed use. Therefore is CG territory. It is not a secondary market type property without a good imagination

Why "mixed use". Sounds like you are assuming that the 30 x 50 building can only be used for commercial purposes. The OP said it had "several" rooms. So what. Can it not be used for a hobby building for antique cars or similar. What type of special features would the building have for an electrical contractor. A few office areas. Maybe they stored a bucket truck or other vehicles. Storage for material and portable tools. Empty out the 30 x 50 building of all of the electrical contractor's personal property and what do you have?

 

[Terrel L. Shields]

Any place that used an AMC for this type property will have many qualification problems. Look to a local bank that holds its own loans and know the area. The rural residential lending arm of Farm Credit is: https://www.fcsamerica.com/products-services/rural-1st-home-loans

Local banks that loan to farmers and contractors (small service businesses) or Rural First are better routes to go. They will work with self-employed buyers. In this area farm outbuildings have little value compared to the house, but that has to be analyzed for your typical area.

Where I am it would not take a CG to do the appraisal, but that depends on State Laws.

exactly. It is not the property you typically finance with secondary market but very typical of Farm Credit rural home loans.

As for mixed use, I know a number of buyers who seek a property for their home business. Often, they are not allowed signage but don't care. I know a guy who hunted far and wide for a house with a detached shop for his leather work. Another that a lady wanted for a loom as she liked to make tapestries. And several with one to five buildings that they restored or collected old cars. Another has a metal fabrication shop, and I bet I can find 10 that are used for woodworking shops.

 

[KHS445]

Google Farm Credit Services of the Virginias. There is an office in Harrisonburg.

 

[Terrel L. Shields]

Why "mixed use". Sounds like you are assuming that the 30 x 50 building can only be used for commercial purposes.

If well over half the value is not in the residence, then a lot of lenders will view it as mixed use. It's like the hair dresser in the back room. So long as not half the value or space, then FHA will accept it in theory. In practice it is hard to qualify it. That's the reason a lot of people want to buy outside of town and outside of zoning rules.

 

[Dublin ohio]

but could permit commercial with certain conditions.

So commercial is a "conditional use". Does the property currently have a conditional use variance? Probably not. So there goes you HBU as commercial. If no conditional use variance in place . HBU as commercial would require a hypothetical condition.

 

[Dublin ohio]

If well over half the value is not in the residence, then a lot of lenders will view it as mixed use. It's like the hair dresser in the back room. So long as not half the value or space, then FHA will accept it in theory. In practice it is hard to qualify it. That's the reason a lot of people want to buy outside of town and outside of zoning rules.

With the exception of the 30 x 50 building. The rest of the outbuildings don't appear to be that impressive. The horse barn appears older with several "patchwork" additions. I assume the building in the upper part of the aerial photo is the riding arena. Which in my experience is just a large open building with a dirt floor.

 

[Hondo]

I am a residential appraiser and I do a few of these a year, have for the past 25 years. This is similar to hobby farms with stables, home professions like beauty/barber shops, etc and since this is a purchase the new owner many not want to operate a business, that is between him and his lender. Like another posted said you should contact a local bank or local credit union that will use a local appraiser, not an AMC. Here is a partial list of approved (permitted) uses for A2 Zoning in Loudoun County, Rockingham is probably similar, there are about 4 more pages of uses allowed.

 

[Dublin ohio]

Found the listing. No interiors of the outbuildings. But considering the sale price. Find it hard to see that the outbuildings contribute more than 50%. Depending on site value

https://www.realtor.com/realestateandhomes-detail/17258-Raders-Church-Rd_Timberville_VA_22853_M69264-31810