Residential/commercial

[baseballfan]

I'm currently a trainee doing a desktop appraisal. At the subject property there is a residential home and three steel bldgs. Two of them are either used as or leased out to commercial business. Can this property be appraised as a residential property? Also, is a drive-by enough for this kind of property, should it be a 1004?

Thanks

 

[George Hatch]

You're kidding, right?

 

[Joe Flacco]

Who is your supervisor?

 

[George Hatch]

What difference does it make? Whomever it is they're not doing their job.

The OP should never have even seen this address as an assignment. Which, BTW, is in no way a criticism of the OP, but is rather a criticism of their supervisor.

 

[hastalavista]

I'm currently a trainee doing a desktop appraisal. At the subject property there is a residential home and three steel bldgs. Two of them are either used as or leased out to commercial business. Can this property be appraised as a residential property?

Maybe but there is a lot of things to research first.

Also, is a drive-by enough for this kind of property, should it be a 1004?

You didn't say what the intended use is of the appraisal? I'm going to assume it is for a mortgage-lending decision.
This property (if residential) should not be done on a drive-by form.

I see your forum status is "trainee". I'm glad you came here and asked your question. I hope you are getting good advice form whoever is training you.

The property, with the minimal description you've provided, screams that there has to be some additional analysis done regarding zoning and H&BU. If you have been trained how to do that kind of analysis for this type of property, you should do so and tell us what the results are (so that we can provide you with more relevant advice).
If you haven't done so or are have not been trained to do so (no shame there; what you describe is complex) you should stop and go back to your supervisor.

Your status may not be "trainee" any longer, and you may have your license upgrade (if so, congrats!).
If you are "license level", then this is a complex assignment and in my state, the "license-level" wouldn't cover it for a FRT. You'd have to be a certified-licensed appraiser.
If you are certified, do yourself a favor and turn down the assignment.

Good luck!

 

[George Hatch]

The OP said they're a trainee in their initial post. It's clear that appraising non-res properties has not been within the scope of practice their supervisor has exposed them to and that they have little/no exposure to HBU analysis, which most likely means this is an SFR shop where even a 2-4 would be considered advanced work.

The very least a supervisor could do is screen the assignments they're handing off to their trainee to ensure they're working on a progression rather than being thrown into the deep end of a pool in which even the supervisor is also (probably) unable to swim.

 

[timd354]

You're kidding, right?

This is so ridiculous that you have to wonder whether some of these types of post are fictional, designed just to get a reaction.

 

[baseballfan]

Maybe but there is a lot of things to research first.


You didn't say what the intended use is of the appraisal? I'm going to assume it is for a mortgage-lending decision.
This property (if residential) should not be done on a drive-by form.

I see your forum status is "trainee". I'm glad you came here and asked your question. I hope you are getting good advice form whoever is training you.

The property, with the minimal description you've provided, screams that there has to be some additional analysis done regarding zoning and H&BU. If you have been trained how to do that kind of analysis for this type of property, you should do so and tell us what the results are (so that we can provide you with more relevant advice).
If you haven't done so or are have not been trained to do so (no shame there; what you describe is complex) you should stop and go back to your supervisor.

Your status may not be "trainee" any longer, and you may have your license upgrade (if so, congrats!).
If you are "license level", then this is a complex assignment and in my state, the "license-level" wouldn't cover it for a FRT. You'd have to be a certified-licensed appraiser.
If you are certified, do yourself a favor and turn down the assignment.

Good luck!

This report is for a HELOC. The zoning is RR Rural Residential.

Thanks

 

[hastalavista]

I'd say this is a complex assignment. I wouldn't do it on a 2055 (although I recognize that a HELOC is not a GSE loan).

Also, I'll add this: The biggest mistakes, short of fraud, I've ever seen in residential mortgage appraisals is when the report incorrectly does its H&BU analysis. With the property you describe, it may be residential and the two buildings' income is not the primary value of the real estate. But that entire dynamic needs to be analyzed and correctly addressed. In theory, one could do it with a drive-by (no requirement for an inspection) but the 2055 form... designed for a specific purpose... is not the best way (IMO) to communicate those results. IMO, one would be creating an unnecessary and imprudent level of appraiser-risk for doing something like this as a drive-by for an extension of credit.

So, no drive-by if you ask me.
Complex assignment if you ask me.
May or may not be residential.
I agree with the others; not one I'd let a residential trainee work on (watch me do it, yes. Work on it, no.).

Again, good luck!

 

[The Warrior Monk]

I'm currently a trainee doing a desktop appraisal. At the subject property there is a residential home and three steel bldgs. Two of them are either used as or leased out to commercial business. Can this property be appraised as a residential property? Also, is a drive-by enough for this kind of property, should it be a 1004?

Thanks

I don't like to view properties as strictly "residential" and "commercial," simply because that is not that way the AQB or the states view them. For example, a 100-unit apartment building (with no commercial space) is a residential property; however, a certified general credential would be required to appraise the property (with the usual state-dependent exceptions for non-FRTs).

When it comes to appraising, the appraisal of improved residential properties (for the CR credential) is strictly limited to 1-4 residential units. A property that also includes commercial units is outside of the practice of a CR credential. Unless your supervisor is a CG, you should decline this assignment. If your supervisor is a CG, a discussion with the client is in order to discuss the assignment; if the client is asking for a residential form report, the client may not know what the property is.