Music Lover
Freshman Member
- Joined
- Nov 20, 2013
- Professional Status
- Certified Residential Appraiser
- State
- Wisconsin
I am working on an appraisal of a 1.5ac parcel of land with a 2 story farmhouse. The appraisal is to determine market value for a divorce.
When researching the property I find that the assessor has assessed the home as a storage building, I talk with the assessor and he states that the owner has had the water turned off to the house and is not using it as a home therefore, has requested to have the home assessed as a storage building, the assessor complied. The assessor became quite concerned (obviously he should) that the owner was going to use it for residential use again and he would need to reassess the subject as a home. (of course I did not tell him shy I was appraising it) The assessor stated he had no reason to consider the home inhabitable outside of the fact that the water had been turned off to the home.
I get to the property and the owner's father (the owner could not be there) tells me the following. The gfa furnace needs to be replaced, it does not work and the gas wall furnace in living rm does not work. The water has been turned off since 2009 and water lines in the house were winterized in the fall of 2009. Only a portion of the first floor is heated by the gfa furnace, when it was working. The first floor family rm has a traditional gas space heater (which works) and the living rm has a gas wall furnace. He is also pointing out to a sagging roof on a portion of the home. In my eyes I had to look extremely hard to see it sagging. However, the shingles are near the end of their life cycle. I did not see any fresh water stains in the interior of the home. Just the typically very old brown stains on the interior chimney.
The father is obviously not a disinterested third party, because he owns the property next door, and the subject is part of the father's original homestead, and the appraisal is for his son.
The situation takes another twist, the well is on the father's property next door with a shut off valve for the water flow to the subject in the father's basement. There is not a well on the subject property. The propane tank to heat both homes is located on the son's property. There are no written agreements for the well or propane tank.
When I go into the home I find that a portion of the home has been updated. It has a 1960-70's kitchen, newer bath, one bedroom and a bedroom converted to a first floor laundry rm. There is a permanent heat source to half of the first floor which includes these rooms - gas forced air furnace, with auxiliary wood burning furnace (which supposedly don't work), and a gas space heater. The living room has a gas wall furnace which the owners father says is no longer in working condition. There is a second bedroom and a room which could be used for storage or an office. If the gas wall furnace were working in the living room and between the other heat sources I would presume the heat would travel to these other 2 rooms which would make these liveable areas also.
The second story has no heat and is being treated as an attic for the appraisal. there is a room which could be a bedroom if there were a permanent heat source.
Outside of the kitchen, laundry rm, and bathroom the balance of the first floor is a typical farmhouse needing cosmetic updating it has painted wood floors, some very old linoleum, fair amount of wallpaper, etc. The house is void of all of the telltale signs that it has gone a Wisconsin winter without heat ie; cracked/missing plaster, excessive peeling paint, water stains from excess moisture around windows, etc.
Here is my question after all of this.....I have done the appraisal as a typical residential appraisal and as a land appraisal with a value assigned to the house, which I had one land sale with a home on the property with similar attributes and condition, where I was able to derive a value of the home as said "storage building". These appraisals are for my own use to determine which way to appraise the property. I have plenty of comparable residential sales to support the dated condition of the subject.
I guess I am being thrown of by how it is assessed, no well on property, or that supposedly the furnace & wall heater are not working. The home was lived in until 2009.
I am strongly leaning towards appraising it as a residential home "subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair."
I would also require a written well and propane tank agreement. Would these comments be appropriate for a divorce appraisal?
I am not a newbie appraiser and I have been in the business for 16 years. This is the first time I have had a divorce appraisal situation like this and I want to be sure I am handling it correctly.
I apologize for the lengthy description but, I am trying to cover all of the bases and possible questions to make it easier for people to respond to.
When researching the property I find that the assessor has assessed the home as a storage building, I talk with the assessor and he states that the owner has had the water turned off to the house and is not using it as a home therefore, has requested to have the home assessed as a storage building, the assessor complied. The assessor became quite concerned (obviously he should) that the owner was going to use it for residential use again and he would need to reassess the subject as a home. (of course I did not tell him shy I was appraising it) The assessor stated he had no reason to consider the home inhabitable outside of the fact that the water had been turned off to the home.
I get to the property and the owner's father (the owner could not be there) tells me the following. The gfa furnace needs to be replaced, it does not work and the gas wall furnace in living rm does not work. The water has been turned off since 2009 and water lines in the house were winterized in the fall of 2009. Only a portion of the first floor is heated by the gfa furnace, when it was working. The first floor family rm has a traditional gas space heater (which works) and the living rm has a gas wall furnace. He is also pointing out to a sagging roof on a portion of the home. In my eyes I had to look extremely hard to see it sagging. However, the shingles are near the end of their life cycle. I did not see any fresh water stains in the interior of the home. Just the typically very old brown stains on the interior chimney.
The father is obviously not a disinterested third party, because he owns the property next door, and the subject is part of the father's original homestead, and the appraisal is for his son.
The situation takes another twist, the well is on the father's property next door with a shut off valve for the water flow to the subject in the father's basement. There is not a well on the subject property. The propane tank to heat both homes is located on the son's property. There are no written agreements for the well or propane tank.
When I go into the home I find that a portion of the home has been updated. It has a 1960-70's kitchen, newer bath, one bedroom and a bedroom converted to a first floor laundry rm. There is a permanent heat source to half of the first floor which includes these rooms - gas forced air furnace, with auxiliary wood burning furnace (which supposedly don't work), and a gas space heater. The living room has a gas wall furnace which the owners father says is no longer in working condition. There is a second bedroom and a room which could be used for storage or an office. If the gas wall furnace were working in the living room and between the other heat sources I would presume the heat would travel to these other 2 rooms which would make these liveable areas also.
The second story has no heat and is being treated as an attic for the appraisal. there is a room which could be a bedroom if there were a permanent heat source.
Outside of the kitchen, laundry rm, and bathroom the balance of the first floor is a typical farmhouse needing cosmetic updating it has painted wood floors, some very old linoleum, fair amount of wallpaper, etc. The house is void of all of the telltale signs that it has gone a Wisconsin winter without heat ie; cracked/missing plaster, excessive peeling paint, water stains from excess moisture around windows, etc.
Here is my question after all of this.....I have done the appraisal as a typical residential appraisal and as a land appraisal with a value assigned to the house, which I had one land sale with a home on the property with similar attributes and condition, where I was able to derive a value of the home as said "storage building". These appraisals are for my own use to determine which way to appraise the property. I have plenty of comparable residential sales to support the dated condition of the subject.
I guess I am being thrown of by how it is assessed, no well on property, or that supposedly the furnace & wall heater are not working. The home was lived in until 2009.
I am strongly leaning towards appraising it as a residential home "subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair."
I would also require a written well and propane tank agreement. Would these comments be appropriate for a divorce appraisal?
I am not a newbie appraiser and I have been in the business for 16 years. This is the first time I have had a divorce appraisal situation like this and I want to be sure I am handling it correctly.
I apologize for the lengthy description but, I am trying to cover all of the bases and possible questions to make it easier for people to respond to.
