Residential Property In A Commercial Zone.

[Debra]

Hello!

There is probably an obvious answer to this question but...I received another request for a single family residential property in a Commercial Zone today. There is a sports store right beside it. It would be better for a Commercial appraiser to do this assignment-don't you think??? I've been sending all properties back to be reassigned that are in Commercial Zones since I'm a Residential only appraiser. Debra

 

[deturner]

To me the answer is: It Depends

If it is residential and used as residential. What is the "Highest and Best Use"?

If the answer to that question is Residential, Do it as such.

If the answer to that is Commercial, then ask: Does it fall within my limits as a Residential appraiser?

Otherwise get someone else to do it because it may fall outside of competency.

IMHO

Dave in NC

 

[Michigander]

I think you are looking at a highest and best use issue no matter what the client wants. Are you competent as a residential appraiser to determine H&BU for a commercially zoned property? That is the first and foremost question to ask yourself.

best on this, Rachel

 

[Debra]

Hello again!

No...probably not...at least not in the county that this property is in. I'm playing it safe. I called and got voice mail and told them that it's in a Commercial Zone and they should reassign it. Thanks. Debra

 

[Mike Garrett RAA]

IN MY MARKET....we have lots of residential properties that are zoned commercial. Doesn't mean that is the highest and best use. I am a fan of the theory of "Highest and Best Use as Improved"....unless there are other factors.

 

[Debra]

Hello again!

The client just left me a message while I was out stating that the Highest and Best Use of the property is Residential (how do they know - they aren't even in this state)? It is in a Commercial Zone and "samwhiched (probably spelt that wrong) between 2 businesses" and there is a business across the street from it also. They really want me to do it - I don't. It's not even in my county. They probably just don't want to pay a Commercial appraiser-it would cost them more.

They'll just have to get mad I guess...Debra :blink: :wacko: h34r: nfire: :sniper: :gunfire: :batangel:

 

[Michigander]

It is in a Commercial Zone and "samwhiched (probably spelt that wrong) between 2 businesses" and there is a business across the street from it also.

if it looks like a duck....

They probably just don't want to pay a Commercial appraiser-it would cost them more.

They'll just have to get mad I guess...

bingo! I think you nailed it! This sounds like something you could get yourself into serious trouble over, and obviously your 'gut' is telling you to stay away from it. This is one of those instances that I would listen to your instincts.

best on this! Rachel

 

[Lee SW IL]

If the home is sandwiched between two businesses, property across the street is a business. How is a residential appraiser to know if the properties highest and best use? I would take the stance only a commercial appraiser could determine the highest and best use.

Just my thougts.

 

[Debra]

Hello!

That is exactly what I'm trying to tell them. Thanks!!! Debra

 

[Walter Kirk]

Don't reject a residential order just because the area is zoned commercial. Some governments use zoning as a wish list, hoping that areas will be developed in the way they want. You must analize the highest and best use.