Out of Option, Need Help!

[George Hatch]

Most forms of media production fit easily into conventional and "creative" office space. It's not the kind of operation that's going to trigger a lot of complaints from the neighbors.

6000sf of barns/stables for an equestrian gig or a workshop, what's the difference?

 

[Dublin ohio]

Most forms of media production fit easily into conventional and "creative" office space. It's not the kind of operation that's going to trigger a lot of complaints from the neighbors.

6000sf of barns/stables for an equestrian gig or a workshop, what's the difference?

Obviously not a recording studio. So probably some high quality playback equipment, editing capabilities, audio processing capabilities. Doesn't typically take up a lot of space in the digital era. A lot different than in the analog times. Some of us probably have home offices large enough

 

[djamesgoodwin]

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.

Indeed - I think comps are a little bit of an issue, mainly because rural properties in general don't come on the market all the time, and they're all so unique due to the nature of rural living and how people use their property. I've tried to develop a list of comps to hand off to someone, and even I admit it's not easy. By that same measure, it's also not easy to find commercial comps either. So it's not like it's just hard to find residential comps.

 

[djamesgoodwin]

Obviously not a recording studio. So probably some high quality playback equipment, editing capabilities, audio processing capabilities. Doesn't typically take up a lot of space in the digital era. A lot different than in the analog times. Some of us probably have home offices large enough

That's right. The most space I use is to house all my instruments. Therefore a workshop type building is perfect. it's not a 'commercial' recording studio in any sense of the word. Just a private workspace that I use alone, when I'm not traveling to work on recordings, which I often do.

 

[Terrel L. Shields]

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

No, if over 50% commercial FHA won't fund it, FNMA doesn't want it, and if CRs are not allowed to value below deminimus property in that state they cannot do it legally.

they could be worth little more than a detached garage or could be worth practically nothing.

Sounds like a typical residential appraiser. Pretend it doesn't exist and lie about the value of the home and land. Then you have the notion of competence. It sounds to me like the appraisers looking at it and saying it is commercial are not simply copping out and avoiding it, they recognize their limits....which seems to be the problem. The approach used is not relevant to whether a property is commercial or not.

 

[djamesgoodwin]

No, if over 50% commercial FHA won't fund it, FNMA doesn't want it, and if CRs are not allowed to value below deminimus property in that state they cannot do it legally.

Sounds like a typical residential appraiser. Pretend it doesn't exist and lie about the value of the home and land. Then you have the notion of competence. It sounds to me like the appraisers looking at it and saying it is commercial are not simply copping out and avoiding it, they recognize their limits....which seems to be the problem. The approach used is not relevant to whether a property is commercial or not.
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Not to be argumentative, particularly because I’m asking for advice… but it does seem like you’re a vast outlier here. It appears that most if not all but you, here, share the feeling that this is not a commercial property, nor would the value of the commercial style building make up 50% of the value of the property.

Being objective, is it not possible that the original appraiser felt this was too complex from the outset, but happily took the $630 and essentially made up an excuse as to not delve further into a more complex report?

Maybe I’m missing something, but it seems the guy got paid to draw up that report, and he certainly did. He drew up one that let him off the hook yet retained his payment.

That seems every bit as likely as the opposite scenario you contend.

 

[Zoe]

I doubt the AMC or lender spent your appraisal fee to the appraiser that turned it down. One of them still has your appraisal fee. The next appraiser may not do it for what you have already paid. The bank or AMC owes you that money back if the appraiser didn't do the appraisal imho.

 

[djamesgoodwin]

I doubt the AMC or lender spent your appraisal fee to the appraiser that turned it down. One of them still has your appraisal fee. The next appraiser may not do it for what you have already paid. The bank or AMC owes you that money back if the appraiser didn't do the appraisal imho.

The appraiser did the HBU, he didn’t just turn it down with no context - would that qualify enough for getting paid for the appraisal?

 

[Zoe]

The appraiser did the HBU, he didn’t just turn it down with no context - would that qualify enough for getting paid for the appraisal?

I don't think so. That was probably just enough for them to say I don't want to do it.

 

[Surf Cat]

Maybe I’m missing something, but it seems the guy got paid to draw up that report, and he certainly did. He drew up one that let him off the hook yet retained his payment.

This type of assignment is certainly out of my wheelhouse and I don't have the competency to pull it off compared to where I am.

Having said that, did you voice your concern to the lender and selling agent, whom in turn could forward your concern to the AMC?

We as appraisers, especially from AMC's, get ROV's (reconsideration of value) all the time.

Bi*ch, moan, complain, run your fingernails down the chalkboard, and don't stop until you get a satisfactory resolution. Tell the lender you want a local appraiser to review the AMC one. Tell them you want another appraisal, tell them the H&BU analysis was unclear and you want an explanation. Keep going and don't stop....the squeaky wheel gets oiled...