Out of Option, Need Help!

[Tiffany Gibbons]

I see. What you wrote makes more sense to me now.

For sure those buildings have value, but it seems easy to conclude that the primary value of the property is the fact that it is a residence with an accessory usage building, no? The horse barns are newer than the house of course, but they're quite cheap pole barn type buildings. The main outbuilding - the workshop - is certainly newer and well built, but seems to me that it has questionable value *without* the residence. In my eyes, it makes the residence more valuable for sure, but without the house, it has pretty limited commercial viability on its own, knowing the area and location, not to mention property infrastructure.

I guess my point is that properties like this are not uncommon in rural Virginia, and I have a hard time imagining non residential buyers for this property. I do understand that this is more complex than a typical residential form appraisal, but I also don't think this an obviously commercial property, based on values. It seems to me, albeit a layperson, that calling that fraud is a tad hyperbolic.

Maybe a better question would be this : considering that I am doing a bank statement mortgage, and unable to do a conventional type loan (I'm self employed, etc), I am stuck with this route. And as a result of that, is there a world in which this property could be appraised as a complex residential property and it not being 'fraud'? And does that simply mean paying for multiple appraisals?

You are self employed. What is your business/trade? Is it something the buildings could potentially be used for? That may be the issue. Mortgage companies hate lending to self employed people. I'm self employed as well, but my business only requires a laptop computer. This type of property would be pretty common where I work, Farm Credit or a local lender would be best. Ask the agent for lender recommendations in the area.

 

[Dublin ohio]

You are self employed. What is your business/trade? Is it something the buildings could potentially be used for? That may be the issue. Mortgage companies hate lending to self employed people. I'm self employed as well, but my business only requires a laptop computer. This type of property would be pretty common where I work, Farm Credit or a local lender would be best. Ask the agent for lender recommendations in the area.

I used to do quite a bit of work for a couple of local lenders that were primarily ag and farm. But did do a fair amount of residential similar to the OPs property. The did not necessarily keep the residential in house. Some went secondary. But they understood the area and so did the appraisers that did the residential work. I would thing that there would be some similar institutions in the OP's area

 

[djamesgoodwin]

You are self employed. What is your business/trade? Is it something the buildings could potentially be used for? That may be the issue. Mortgage companies hate lending to self employed people. I'm self employed as well, but my business only requires a laptop computer. This type of property would be pretty common where I work, Farm Credit or a local lender would be best. Ask the agent for lender recommendations in the area.

I’m a recording producer. Practically speaking, the building Id use for my personal workspace, partly. But my job requires little more than a room with my equipment in it, and I don’t offer my workspace publically.

 

[Tiffany Gibbons]

I used to do quite a bit of work for a couple of local lenders that were primarily ag and farm. But did do a fair amount of residential similar to the OPs property. The did not necessarily keep the residential in house. Some went secondary. But they understood the area and so did the appraisers that did the residential work. I would thing that there would be some similar institutions in the OP's area

Probably every 5th appraisal I do is something like this but since I'm only doing VA work, it's not an issue since VA has clear rules about "Farm Residences", I just put a ton of narrative in the report Highest and Best Use comments about exactly what OP said, 8 acres is not enough for a major horse farm operation, etc. I also add in vacant acreage sales with similar zoning, make sure I have sales with similar outbuildings, etc. I can't imagine AMC's who shop bids out for the cheapest appraiser paying an appraiser enough to do all the research necessary to do a good job.

 

[mp2277]

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

Get a commercial loan from a local bank lender - it is a non-conforming conventional loan you are after.

Totally disagree. In what world does a home based business constitute a commercial HABU and appraisal?

 

[mp2277]

Now the appraiser COULD lie about the value of the buildings, which I bet are worth about as much as the dwelling.

From what approach to value? In a rural residential setting with limited acreage and limited use they could be worth more than the dwelling or they could be worth little more than a detached garage or could be worth practically nothing. My best guess is the original appraiser didn't want to F* with the assignment and rather then just pass they felt a need to explain why even if not a legitimate reason. Looking at the pics I would either pass of request more money not because I feel it is commercial but because it would be a time intensive assignment. I live in SW VA am very familiar with the Shenandoah Valley area and am willing to bet I could find similar non commercial sales.

 

[mp2277]

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

Get a commercial loan from a local bank lender - it is a non-conforming conventional loan you are after.

So a Grandma using her garage to cut hair would be mixed use and require a commercial appraisal? LOL

 

[mp2277]

I see. What you wrote makes more sense to me now.

For sure those buildings have value, but it seems easy to conclude that the primary value of the property is the fact that it is a residence with an accessory usage building, no? The horse barns are newer than the house of course, but they're quite cheap pole barn type buildings. The main outbuilding - the workshop - is certainly newer and well built, but seems to me that it has questionable value *without* the residence. In my eyes, it makes the residence more valuable for sure, but without the house, it has pretty limited commercial viability on its own, knowing the area and location, not to mention property infrastructure.

I guess my point is that properties like this are not uncommon in rural Virginia, and I have a hard time imagining non residential buyers for this property. I do understand that this is more complex than a typical residential form appraisal, but I also don't think this an obviously commercial property, based on values. It seems to me, albeit a layperson, that calling that fraud is a tad hyperbolic.

Maybe a better question would be this : considering that I am doing a bank statement mortgage, and unable to do a conventional type loan (I'm self employed, etc), I am stuck with this route. And as a result of that, is there a world in which this property could be appraised as a complex residential property and it not being 'fraud'? And does that simply mean paying for multiple appraisals?

You know more, or at least articulate better than some appraisers commenting here LOL

 

[Mike Ault]

I’m a recording producer. Practically speaking, the building Id use for my personal workspace, partly. But my job requires little more than a room with my equipment in it, and I don’t offer my workspace publically.

The availability of comparable sales activity will go a long ways in determining whether you qualify for a "conforming loan program," or not. But first, you have to find an appraiser who agrees with your HBU analysis, as most of us on here do.

 

[Dublin ohio]

From what approach to value?

You get 3 guesses and the first 2 don't count