Questions about outbuilding value

[Zoe]

correct...they are to rely on the appraisal report deemed most credible.

If I was first appraiser, I would seriously reconsider based on what little I know about the situation.

 

[Zoe]

That first appraiser is way better off reconsidering now than later. If the lender emailed me for ROV, I would move it to front of line. Be way better choice although I don't like ROVs. I would be back on phone with seller and agent and buyer if I could.

You can do a bunch of things on 7.5 acres with the improvements that are existing. Especially if you are a veterinarian.

 

[Terrel L. Shields]

hat first appraiser is way better off reconsidering now than later.

I think most of us who do rural property are very familiar with the idea that outbuildings are usually contributing some value so long as they have a utility, are in good condition, and especially if low age.

 

[brokenokie]

Update: The original appraiser accepted the comps I provided and revised the value upward to 450k. Thank you all for your help!

 

[Sadie]

What if I wanted to buy a McDonald's and live in it as my residential home? We, as appraisers, have what's called 'highest and best use'. Just because the Mcd's is being marketed as a residential doesn't mean that's the best use, most valuable use, the legal use and maximally productive use. Just saying it is residential doesn't automatically make it residential.



9 stalls? "Office"? Quonset hut? I could see one of those on a property, standalone, but having several buildings, supporting the 'use' of the property.......not a typical 'residential' property.......



It's all adding up.

I don't consider it commercial- there are lots of properties like that here that are not commercial. No license needed to have an over improved property that includes a super nice barn. Some even have indoor arenas with a full caretakers quarters.

 

[Sadie]

I haven’t read thru the thread so this may have already been said/covered. In my area a “horse property” has special meaning in the market. It is very important to compare a legit “horse property” to other horse properties and not just similar homes on similar acreage with outbuildings and no adjustments for the horse property utility.

Same here, I bet horse property means the same most places.

 

[Vermonter]

Same here, I bet horse property means the same most places.

Yes. It means horse people will pay more for them....and no one else will

 

[Mike Ault]

Yes. It means horse people will pay more for them....and no one else will

Similar to swimming pools. The pool of buyers interested in properties with those is considerably smaller, and they take longer to market. The right buyer will pay more for them eventually, though.

 

[Zoe]

Update: The original appraiser accepted the comps I provided and revised the value upward to 450k. Thank you all for your help!

I knew the buyer and lender were not going to let that first appraiser get away with it and especially since you had to get another appraiser to help.

 

[Zoe]

the first appraiser made a wise choice.