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Two questions for my fellow New Yorkers

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Eli Weiss

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Certified Residential Appraiser
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New York
#1: I am doing a co-op that features a sleeping loft above the kitchen and bath, the realtor includes the sleeping loft within the GLA (but they include basements too, don't they?) and it appears my unit has more shares because of the sleeping loft, would/do you include it within the GLA?

Its similar to this:
http://www.corcoran.com/property/FloorPlan.aspx?Region=NYC&ListingID=938083

#2: I am doing a townhouse in the City, owned by a doctor and he has his practice oh the first floor, resides on second and third levels, and rents the fourth. The lender wants it done as a multi on a 1025 supported by two and three unit comps, it's classified as a S2 but unlike other S2 properties, only a doctors office is permitted, (No retail or other commercial use is permitted) and if I am not mistaken the doctors office has to be the owners practice, which in my case it is.
Now would you do this on 1025 form?

Here is the C of O


I found this Q&A here:
http://query.nytimes.com/gst/fullpage.html?res=9D0CE3DD103EF93AA15751C1A967958260

Question: I own a four-family brownstone in a residential zone where a doctor's office is a permitted use for one of the units. Can this space be rented to another commercial use, such as for an accountant, or be used by the professional as a residence as well as an office? . . .
Elliot Schuman, Brooklyn

Answer: No. Vahe Tiryakian, a spokesman for the Department of Buildings, said the doctor's office cannot be rented to a commercial tenant. "The zoning resolution permits certain non-residential uses in residential areas," said Mr. Tiryakian, "In general they are for recreational, religious, educational or medical facilities. The law does allow doctor's offices but commercial uses like accounting businesses." Mr. Tiryakian said it would be possible to convert the space designated for community use into a residence where certain "home occupations" would be permitted and accounting is not a business that is banned as a home occupation. One requirement of the home occupation law is that the business take up no more than 500 square feet or 25 percent of the total floor area.

If you convert the doctor's office to a residence, you would need permits from the Buildings Department for any alterations and you probably would have to meet the requirements of Local Laws 58 and 87, which pertain to space modifications for use by the handicapped.
 
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Claude From NY

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New York
Mr. Weiss, you are quite active in the wee hours of the day.

would/do you include it within the GLA?

Yes

Now would you do this on 1025 form?

Yes.

I had a similar assignment, because there was previous professional use office it has a taxable status of "S2", store + 2 units. The configuration was a duplex apartment (owner) and a rental.
 

Tony V

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Mar 29, 2005
Professional Status
Certified Residential Appraiser
State
New York
Mr. Weiss, you are quite active in the wee hours of the day.


It probiblly kept him up all night, until you gave him a answer....Hpoefully he wakes up before kickoff...
 

Eli Weiss

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New York
Well, is there even night in NY? come on guys to Times Square, especially on a Saturday Night.......:drinking:
 

Kevin Mc

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Professional Status
Certified Residential Appraiser
State
New York
I believe Claude is correct.

these are fairly common. I'm sure you see many of these with daycare centers on the first floor in the county of Kings. Professional space has to be owner/occupied so just use similarly classed buildings.
 

KenRossman

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Joined
Oct 20, 2004
Professional Status
Certified General Appraiser
State
Florida
The 1st issue could be addressed either way. How I would handle it would depend upon what I had available for comparables and whether the market would value the loft space at the same value per sf as the main level. Consistency is key, as well as in depth description and analysis.

I would have no issue with the use of the 1025 form in the second question. They only "grey" area is whether the state would expect the property in question to be signed off by a CG, since they have previously indicated any non-residential use constitutes a commercial/industrial use (another reason why to add the CG feather to your cap)
 

Mike Kennedy

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Professional Status
Certified Residential Appraiser
State
New York
Ditto Ken - As a Cert. Res., unless under the supervisory direction of a CG Signatory - I personally wouldn't touch that assignment (with emphasis on Medical Doctors Office i.e. COMMERCIAL USE a core value element and clearly a Highest and Best Use issue) with a 20 foot pole and always refer them to GC's i "trade" with.


§1101.2 Scope of practice for certified residential real estate appraiser
(a) The scope of practice for a certified residential real estate appraiser is limited to:
  • (1) the appraisal of 1-4 family residential units without regard to value or complexity; and
    (2) the appraisal of vacant or unimproved land that is to be utilized for a 1-4 family residential unit without regard to value or complexity, or vacant or unimproved land for which the highest and best use is a 1-4 family residential unit without regard to value or complexity.
 
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Claude From NY

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Certified Residential Appraiser
State
New York
Mike

I think we've been down this road before when it comes to the S classification in NYC. In this case the taxable status is S2, not because there is a store but because the Dr. has an office within the residence. It's how NY City gets a few more $ out of the profession office use. The C/O is for two families, the zoning is residential and the office cannot be rented out commercially.
 

Eli Weiss

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Professional Status
Certified Residential Appraiser
State
New York
Most feedback I am getting is that, as long as the office it's less then 25% then it's OK, and in a way considered a home office, just like some of us have the appraisal office at home.
Claude, good point on that S2 classification being basically for tax purposes, (gave you reputation points for that...)

Kevin, using other S2 as comps will not work, this is a totally different situation, it looks residential from the outside, it was built as residential, and can easily be converted back to residential, unlike other S2 properties.
 

Mike Kennedy

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Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Is the highest & best use mixed with a shingle on the door and Income stream or as strictly residential? What Definition of Market Value? Based on the Room Count 10 rooms 4 medical office = 40% no? :) :icon_idea:
 
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