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Residence zoned Commercial

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Maria Burns

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Freshman Member
Joined
Nov 5, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Okay, I am appraising a pre-foreclosure house which is zoned commercial. It is legally non-conforming and if remodeled or destroyed cannot be rebuilt as a SFR.(unless it is attached to a business) It would have to be brought up to commercial building codes. How do I approach this? Can I use other single family residences zoned residential?(Can't find any with commercial zoning?) Should a commercial appraiser be doing this?
Thanks!
 

David Wimpelberg

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Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Okay, I am appraising a pre-foreclosure house which is zoned commercial. It is legally non-conforming and if remodeled or destroyed cannot be rebuilt as a SFR.(unless it is attached to a business) It would have to be brought up to commercial building codes. How do I approach this? Can I use other single family residences zoned residential?(Can't find any with commercial zoning?) Should a commercial appraiser be doing this?
Thanks!

Since you're not familiar with appraising this type of property, I recommend, at a minimum, having a commercial appraiser supervise you. For market value, it's all about Highest and Best Use. The above scenario, which indicates SFR use is allowed only by grandfathering, is an indicator that the use is an interim use.

I would avoid using other SFRs for comparison unless the Highest and Best Use is residential; it's rare, but it happens.
 

Maria Burns

Thread Starter
Freshman Member
Joined
Nov 5, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Maria

Yes, I agree about the highest and best use. I had already added in my comments that the highest and best use is not its present use. I have a phone call in to a Commercial appraiser associate as well. Thanks!
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Overall H&B use may not be residential. However, the interim use as residential may be the CURRENT H&B use as the demand to convert to commercial may not be there. Cities tend to use a broad brush on zoning, sometimes taking in areas that the figure will become commercial or they wish would become commercial, but with no real demand for the area to go commercial. So, don't hang your hat on the zoning as the H&B use. Consider demand, use changes, etc when building your overall H&BU analysis.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Can you say..."complex appraisal assignment"?
 
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