John J. Phillips
Freshman Member
- Joined
- Feb 1, 2013
- Professional Status
- Certified General Appraiser
- State
- Texas
You have to appraiser a property to it's highest and best use, and H&BU says it has to be legally permissible, so therefore H&BU is SFR and it has to be appraised as a SFR. So I guess it would actually be much more complicated if the zoning actually allowed a duplex. The functional issues dictate that it should be comped as a property in need of a total interior renovation, and luckily I have such comps. I'm not at all worried about value or USPAP, more compiling with FNMA. H&BU in the absence of comencing a renovation (i.e. for an as is value) is not very useful assuming the improvements have any contributing value, and I don't think anyone expects the appraiser to take it beyond general property type. I doubt any appraiser anywhere anytime has said on their own the H&BU it to replace all the original windows with replacement windows, or that the improvements should have been built 200 SF larger. Even the selling guide ends the H&BU instructions by saying so long as the improvements add value to the land the appraiser should report the existing improvements as the H&BU. The improvements are not illegal, just the current use of the improvements, and zoning regulations definitely distinguish between structures and uses. I think it is just a question of if it is FNMA eligibility as is, or does owner need to anything to be FNMA eligible, and I think that has to come from the lender.PLEASE don't take this person's advice. She has an opinion about everything, many being unsupported.
If you were appraising a property and there was a converted house to a liquor store would she state "Since liquor store use is not legal, this is still a single-family home"?
Her above statement is ludicrous to be nice. It is currently A DUPLEX and what are you going to do about the Highest and Best Use section of the 1004? I don't want to even think about what she would do in this situation.
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