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SFR On Current Commercial Zoning, But Can't Rebilt As SFR

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ipari21

Thread Starter
Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
Hollo, everyone,
I'm doing SFR appraisal that is currently on commercial zoning, but City advised that the subject can not be rebuilt as-is for SFR at the event of destroyed. Only allow for commercial building, parking lot and 2-4 unit residential dwelling on current zoning compliance.
I'm first time for this situation.
Any advise, helpful for me.
Please advise. Thanks.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
You start with the highest and best use analysis. Are there any SFR properties in existence? Have any sold recently? What happened to them after sale, were they converted to something else? Were they razed and something else was built?

If you are appeasing to market value, you are appraising to highest and best use.
 

ipari21

Thread Starter
Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
You start with the highest and best use analysis. Are there any SFR properties in existence? Have any sold recently? What happened to them after sale, were they converted to something else? Were they razed and something else was built?

If you are appeasing to market value, you are appraising to highest and best use.
 

ipari21

Thread Starter
Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
Yes, there's my dilemma. This assignment is for a short sale asset verification. Ive confused for the highest & best use on this property.
I'm afraid that this be handled by residential appraiser.
Do you think any adjustment needs?

Any advise would be thanks.
 

ipari21

Thread Starter
Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
This is first time that the SFR properties can not rebuilt on a commercial zoning by City.
Please advise your opinion.
Thanks.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
You have to survey the market activity to determine the most likely buyer. SFR buyers purchase homes to live in. Investors purchase properties to exploit market trends and to fill demand.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I suggest you partner with someone who is well versed in HBU determination to help you.
 

ipari21

Thread Starter
Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
I suggest you partner with someone who is well versed in HBU determination to help you.
My confusion is there. It was legally permitted, but not for future. Do you think this property can be marked as HMU on page 1?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
My confusion is there. It was legally permitted, but not for future. Do you think this property can be marked as HMU on page 1?

It is legal non conforming use to existing zoning. Therefore the property is allowed to exist as-is. That may not be its highest and best use. You have to determine who the likely buyer will be and what they will do with this property and the effect on value.
 

ipari21

Thread Starter
Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
It is legal non conforming use to existing zoning. Therefore the property is allowed to exist as-is. That may not be its highest and best use. You have to determine who the likely buyer will be and what they will do with this property and the effect on value.
Thanks for your advice.
 
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