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Permitted Workshop Value?

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timindp

Junior Member
Joined
Jul 6, 2007
Professional Status
Certified Residential Appraiser
State
California
I'm doing a 1004 SFR with a permitted workshop to the rear of the site. Zoning allows for the workshop. Though comps are super limited with similar workshops. How would you value such an area? It's approx 720 sq.ft. Since no comps to compare with, can I simply use an est. cost to build @ $80-$100/ sq.ft. ?
 

gotnoworrys

Sophomore Member
Joined
Mar 2, 2013
Professional Status
Certified Residential Appraiser
State
Florida
Personally, I would not use cost to adjust as the contributory value is most certainly less. Perhaps you could compare it to a shed or a home with an additional garage space as these items can have a similar utility. Any sort of out building may provide a bases for an adjustment.
Once I had an odd amenity that I could not bracket. I adjusted for all known factors and what remained was the final adjustment.

Hope this helps. Good luck.
 

Ken Masla

Junior Member
Joined
Jul 17, 2006
Professional Status
General Public
State
California
I'm doing a 1004 SFR with a permitted workshop to the rear of the site. Zoning allows for the workshop. Though comps are super limited with similar workshops. How would you value such an area? It's approx 720 sq.ft. Since no comps to compare with, can I simply use an est. cost to build @ $80-$100/ sq.ft. ?

How finished is the workshop? Is it just a very large shed? Are there any bathrooms, etc?

Does the market want workshops? I personally don't need a workshop. I would probably use it as additional garage/storage or grow house.

If it is finished w/ bathroom I would probably use it as a studio/office.

I would compare it to something with similar utility and comment.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Perhaps use comps with detached garages ( which can be converted to a workshop_) or guest cottages, though a guest cottage typically has more value. I'd use depreciated cost as well. Look for older comps back 3 years and out of area.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
A workshop, hobby barn, and virtually any out building are a residential amenity for storage and a hobby interest. The space is replaceable at $X a square foot (prices of sheds and metal skinned buildings are available in Nickle Ad papers). The market doesn't pay anywhere close to $50/sf. Spend some time and research to develop a defensible opinion.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
he market doesn't pay anywhere close to $50/sf. Spend some time and research to develop a defensible opinion.
Agree with latter but I have seen several instances where contributory value is in excess of $50/SF, but more commonly the RCN isn't over $40/SF and almost always the discount exceeds the straight line depreciation. I appraised a nearly new shop that was insulated, had Lean to sheds on three sides garage door openers, industrial "Tufco" floor and had central heat and air...nice shop. There is a way to cost these out and I would do that before I arm waved. Go to your California assessor's source book if you don't have a NBC or Means cost book (M & S is worthless)... Thank Can for this link

https://www.boe.ca.gov/proptaxes/ah534.htm
 

timindp

Junior Member
Joined
Jul 6, 2007
Professional Status
Certified Residential Appraiser
State
California
Thank you for the feedback, after further research I did use 2 comparables on my grid and determined a value based on the match paired analysis. Worked out just fine and is supportable. Thanks again.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
$80-100/sf for a workshop? Wow. must be one heck of nice place!
 
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