Pole Building Half Storage Half Living Quarters

[Michigander]

Is it possible for you to post the floor sketch that you completed so we can get a more clear picture of what you are describing? Maybe a photo or two as well? Might give us a bit more help so as to help you better.....

 

[Otis Key]

Edit - I read the answer to my first question.

How does the quality of the improvements compare to standard site built houses? What is your perception of the marketability of the house to the public? How will the public view this house? Odd ball? Just another house? Like Serena (I'm gonna have to make I spell that right ) said, without pictures and/or floorplan, it's hard to visualize.

Log houses are not a common thing around here and every now and then I end up getting one to appraise. Of course, the UW wants me to suddenly produce a sale from no where just like it. After pages of explainations that state there are NO KNOWN sales within a 20 mile radius of "Just like it" houses, I also end up giving them the odd ball geo-dome and/or "A-frame" house that's sold.

I still think Greg's idea is the best: 3 week vacation.

The lender is local so they know or should know what the property is.

They should???????? :blink: :blink: You haven't told them yet? :wacko: :wacko: How would you feel if you suddenly had this sprung on you? Oh, yea, you did! Wasnt' fun. Tell the lender before you proceed any further. They may take care of your problem and you could bill for your time.

 

[Austin Martin]

It will probably be at least a week before I actually go vist the property. Longer if Im lucky. I wii try to post a floor plan next week however, it may have changed since the last time my mentor was there. The order mentioned that the owners were making some improvements.
Part of the excess space is used as a garage the rest of the unfinished area is basically storage. Would it be reasonable to treat the unfinished area as a big attached garage? This would leave me with a manageable amount of living area aproximatley 1500-1700 sq.ft. Then I would have to adjust for an oversized garage and quality of construction perhaps.
Thanks for the advice I will try to keep updating as the "problem" progresses.

 

[Pamela Crowley (Florida)]

Part of the excess space is used as a garage the rest of the unfinished area is basically storage. Would it be reasonable to treat the unfinished area as a big attached garage? This would leave me with a manageable amount of living area aproximatley 1500-1700 sq.ft. Then I would have to adjust for an oversized garage and quality of construction perhaps.

How would buyers look at it?

 

[Richard Carlsen]

Austin

Here is a pole construction that I did for a sale in April.

It had one bedroom living quarters up and open pole building garage on the main level. Quality up was M&S Low to Fair. It was water front with 7 acres of land. (Boggy bottom actually with a ROW that passed between the house and the water front). My appraisal came in about 3% under the sales price. One week later, a "better" appraiser was found who agreed with the sales price. Closed at $149,000.

 

[Ray Miller]

Study your state. There are a number of equine operations that have been built with housing in them. All one building. Then when the horse operation flop, bit the dirt. They were convert to storage buildings with housing for the caretaker.

So you have two sources. Current equine operations housing. Current storage buildigns with housing.

I think a company called Storage ALL builds there housing into the storage units.

I would also take a look at HBU and the Cost approach.

Good luck.

I will be in your area this week for a reunion at "The Little Brown Church in The Vail". It starts Thurday and runs through Sunday. It is the 100th year reunion of all of those that have gotten married at the chuch.

 

[Ted Martin]

Check with the local Morton or Butler building dealers I'll bet they can point you toward similar structures in the area.

We're seeing six to ten of these being built in our part of the world. There is one currently listed on the local MLS for $400,000. Hope they don't call on that one if they get a contract because I'm sure I make a lot of people mad with my "value opinion".

 

[Austin Martin]

Ted
Mortons are common in my area as well. We have plenty of the buildings being put up. However, few if any are put up with livings quarters.

 

[Austin Martin]

Good News
I found a comp. 2600 sq.ft pole building smaller then my subject with less concrte floor but newer, does have 800 sq.ft of living quarters sold last year for 55,000 is located 6 miles away in a smaller town. Now I just need 2 more. Ha

 

[VolcanoLvr]

I'm glad we have this forum, and for Richard's positive comments about the pole building valuation evaluation I recommended.

My point about not relying only on the Cost Approach is that if the loan is sold to Fannie/Freddie, they won't take it. They rely only on Sales Approach. However Richard has a positive way to adjust for quality which is reasonable and supportable. Keep your notes, and describe your adjustment procedure in the addendum. Marshall & Swift is a good source for cost info.

Regarding the garage/storage space: On oversize garages, I normally adjust for the number of side-by-side vehicles which can be stored using their own doors, and the rest of the space is allocated to "shop" space as a separate adjustment at the bottom of the grid, with the amount based on the space size and finishes/amenities. I've never been challenged by an UW for doing it this way, and it shows them that some value is attributed to the extra storage/shop space.

Other appraisers will make a larger garage adjustment to account for the extra space. Either way works as long as it's reasonable and explained.

I'm told it is improper to allocate vehicle space adjustments for extra vehicles one-ahead-of-another as total garage parking, since vehicles must be moved out one at a time.

By the way...another important element to inspect: Is the separation between the garage/shop/storage and living space protected by non-combustible wall & ceiling surfaces - typically 5/8" sheetrock, and a self-closing fire door into the living space? If not, do report 'subject to' repair and call for this to be done. On one pole building/residence I did, the entire underside of the floor above the garage had no firestop ceiling, which I reported. It had to be installed before the loan closed.

Dave Towne