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What to do - Commercial?

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Ultraviolet

Thread Starter
Senior Member
Joined
Dec 31, 2002
Professional Status
Retired Appraiser
State
Arizona
The subject property is zoned commercial and is surrounded on all sides by small commercial (office, small retail, worship facility and another older SFR with C-1 zoning).

The subject is being used as a group home and is under a 5 year lease with automatic 5% increases each year.

The SFR adjacent to the south is used as an administrative office for the organization running the group home next door.

The client has instructed me to appraise the property under the hypothetical condition that it is an SFR located on a minor thoroughfare, surrounded by commercial.

My opinion is that the only residential aspect of this property is how it looks from the street - like a house! :leeann2:

What would you tell your client?
 
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CANative

Elite Member
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Jun 18, 2003
Professional Status
Retired Appraiser
State
California
The client has instructed to appraise the property under the hypothetical condition that is an SFR located on a minor thoroughfare, surrounded by commercial.

:rof: :rof:
 

Randolph Kinney

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Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
The subject property is zoned commercial and is surrounded on all sides by small commercial (office, small retail, worship facility and another older SFR with C-1 zoning).

The subject is being used as a group home and is under a 5 year lease with automatic 5% increases each year.

The SFR adjacent to the south is used as an administrative office for the organization running the group home next door.

The client has instructed to appraise the property under the hypothetical condition that is an SFR located on a minor thoroughfare, surrounded by commercial.

My opinion is that the only residential aspect of this property is how it looks from the street - like a house! :leeann2:

What would you tell your client?
Residential may not be the HBU and the existing use would be a value in use, not market value.

Who is the client and intended users? What is the intended use?
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
The client has instructed to appraise the property under the hypothetical condition that is an SFR located on a minor thoroughfare, surrounded by commercial.

My opinion is that the only residential aspect of this property is how it looks from the street - like a house! :leeann2:

What would you tell your client?
:rof: I'd say I don't do fraudulent reports. :rof:
 

Fred

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Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
What is the intended use?
Fooling the secondary market into buying the mortgage.
 

George Hatch

Elite Member
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Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
The property rights you are appraising are affected by that lease. For your client to ask you to ignore that lease isn't one of their options.
 

Ultraviolet

Thread Starter
Senior Member
Joined
Dec 31, 2002
Professional Status
Retired Appraiser
State
Arizona
The property rights you are appraising are affected by that lease. For your client to ask you to ignore that lease isn't one of their options.


What if the client is my employer and can make notes in my permanent file? :icon_mrgreen:
 

Mike Boyd

Elite Member
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Jan 18, 2002
Professional Status
Retired Appraiser
State
California
A SFR can be leased with those same terms and the second house could be a guest house.............right? But the zoning would likely mean H&BU would be commercial since it is already surrounded by commercial, small retail and a church.
 

Ultraviolet

Thread Starter
Senior Member
Joined
Dec 31, 2002
Professional Status
Retired Appraiser
State
Arizona
Thanks for the helpful comments.

My position is that I'm not qualified to do this assignment due to the commercial nature of the property and complexity.

There are other houses on the same street that are zoned residential and other houses in the area with similar commercial influences. But there are no similar properties that have all the same characteristics that aren't being used in a commercial capacity.

I haven't been asked to mislead anyone or leave out details, only to use a hypothetical condition that I don't think is reasonable.

What I'm worried about is the AZ Board of Appraisal - not the client! :icon_mrgreen:
 
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