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Residential AND commercial property - HELP!

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thomasm

Thread Starter
Freshman Member
Joined
Nov 26, 2007
Professional Status
Certified Residential Appraiser
State
Alabama
I've been asked to appraise a parcel of land for someone who just inherited it. It is about 2 acres+/- with a small house (recently renovated) on it. It is all one parcel and about 1.3 acres of it is being leased out by a man who has a car wash/detail on it (portable building). The subject property is across the road from the city limits, thus there is no zoning. On either side of the subject there are businesses, but across the street and behind the subject is residential property.

Any suggestions on how I should handle this? I am the 3rd appraiser she has contacted and the other 2 said they didn't know how to handle it....

Thanks in advance!
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I've been asked to appraise a parcel of land for someone who just inherited it. It is about 2 acres+/- with a small house (recently renovated) on it. It is all one parcel and about 1.3 acres of it is being leased out by a man who has a car wash/detail on it (portable building). You will need to establish the HBU first. The subject property is across the road from the city limits, thus there is no zoning. On either side of the subject there are businesses, but across the street and behind the subject is residential property. No zoning for those either??

Any suggestions on how I should handle this? I am the 3rd appraiser she has contacted and the other 2 said they didn't know how to handle it....

Thanks in advance!


I depending on the value of the Land and the SF on it. It could be just a land appraisal. Does the home contribute to the value of the land? What else can be built there. What is going on in the area, more commercial then residential or more residential then commercial? Can the area be zoned? Lots of questions to answer first.
 

thomasm

Thread Starter
Freshman Member
Joined
Nov 26, 2007
Professional Status
Certified Residential Appraiser
State
Alabama
Thanks, Ray. Yes, the homes are zoned R-2 residential and the commercial property is zoned C-1 commercial. It's really split about 50/50.

I think she should split the property, but I'm not her consultant, and she needs to know what it was worth when she inherited it 3 months ago....

The house itself is actually in great coondition. It was just remodeled completely this summer....
 

Caligirl

Senior Member
Joined
Jan 27, 2006
Professional Status
Certified General Appraiser
State
California
The subject property is across the road from the city limits, thus there is no zoning.

Sorry, might be a stupid question but are you sure there is no zoning? Is it in an unincorporated area and thus under zoning constraints from the county?
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Sounds like a SFR that has a lease that needs to be considered in the value? (Like one of Greg Boyd's typical assignments!)

Unless the property would be more valuable as a commercial site? :shrug:
 

Caligirl

Senior Member
Joined
Jan 27, 2006
Professional Status
Certified General Appraiser
State
California
Sounds like a SFR that has a lease that needs to be considered in the value? (Like one of Greg Boyd's typical assignments!)

Unless the property would be more valuable as a commercial site? :shrug:

I agree-that is why the zoning issue is so important. HBU must comply with existing zoning restrictions (legally permissible).
 

thomasm

Thread Starter
Freshman Member
Joined
Nov 26, 2007
Professional Status
Certified Residential Appraiser
State
Alabama
Thanks for all the help, everyone. After going through numerous channels I found out that the subject is under NO zoning constraints. The best way to complete the assignment is as SFR and consider the lease in the value.

This is quite an odd circumstance....and I obviously undercharged ;)
 

Doug Trites

Junior Member
Joined
Oct 17, 2007
Professional Status
Certified Residential Appraiser
State
Michigan
Go back and change your fee. This is a complex property and should be billed with this in consideration. Is it better as one large SFR or on many buildable sites would there be to make this into a plat or pud? Does cost of road eat up profit. You may want bill under consulting and show the highes and best use be researching the differnt options.
 
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