• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Subject: Single Family Home is zoned CL-1

Not open for further replies.

Ray Miller

Elite Member
Feb 20, 2002
Professional Status
Licensed Appraiser
:eek: Subject property is on three lots. Subject property and surrounding lots are zone Light Commercial. In this area there are three homes including subject that were in place before the zoning change. Grand fathered in the zoning. This property is on the back side of the main business belt.

There is a heating and cooling business with shop, storage lot, storage sheds and parking lot adjacent to part of subject property. A new home that has just being built, adjacent to subject and the heating and cooling business. This is there vacation cottage, being built. Dad gave them the land. :roll:

The area is a tourist area with mostly retail recreational business that you would fine in such an t area. Along with the support type’s of business’s for the area. :wink:

I can find no other comparable’s in this small town that have been single family homes, zone LC-1, that have sold in the past year. Or homes adjacent to CL-1 that have sold. :(

Paved streets in this area are only thirty feet wide, no crubs, well water, septic systems. 8O

Which direction do I head with the appraisal. Single family home, highest and best use as commercial. :?

I am calling the lender today to advise of the zoning.

Second set of question's: :?:

Are the types of properties that I am being asigned, with the problems that I runing into, common in the industry? Is this because I am on a learning cruve and little problems seem to be big problems? Is it due to the small town, rural, recreational nature of the area? :?

Mountain Man

Elite Member
Jan 15, 2002
Professional Status
Certified General Appraiser
Check with you lender. If it is an interim use property (one that an investor holds as a rental home until the land values increase) they may not want to touch it. Below is some "homework" reading for you. :wink:

As for receiving odd ball request. Yeap, that is the standard now days. AVM's take the easy ones. Just keep learning from you mentor, because those who develop the skills to handle these tough jobs, will always have a job.






Oops, sorry the hyper link didn't work :x .... so just cut and paste. 8)

Steve Owen

Elite Member
Jan 16, 2002
Professional Status
Certified General Appraiser
Here's your hyper-link:


The short answer is that you always appraise the land, as if vacant and ready to develop, at its highest and best use.

Once you have the land value, if the improvements add value, then the property can be appraised as improved. (It may be an interim highest and best use, especially if land values are increasing.) If the land is more valuable than the improved property, then it is no longer improved at highest and best use.

You have a couple of other issues when you get into zoning questions. Is SFR allowed under the current zoning, or is it a non-conforming, legal use?

Will the underwriter at your client or secondary accept the property as improved? If they won't make a loan there may not be any point in appraising it. (Be sure to collect a partial fee for the work you have already done.)

After you get past the zoning issues, there is the issue of external obsolescence. If you can't find any comps, either in this small town, or in other small towns in the same marketing area, this may become pretty subjective. Basically, you have to decide how much the market will discount for the surrounding uses. (This analysis may help you decide whether the improved property is still at highest and best use.) Don't be afraid to go back several years to find this comparable data. Be sure to tell your client up front that there will be additional fee for this work, based on the complexity of the assignment, and don't be afraid to ask for help from another local appraiser if that is an appropriate course of action.
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks