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When Does Residential Become Mixed Use?

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SJ GLO

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Joined
Mar 12, 2014
Professional Status
Licensed Appraiser
State
New Jersey
I just inspected a 1800 sf 3 BR ranch with an attached 2 car garage and detached 60x40 pole barn. The owner has a variance to use 18x40 of the pole barn for office space for a 'home based office business'. Variances allows only 1 employee, no signage, 2 business vehicles, no storage of materials and no deliveries. The business has to be operated by the home owner. The zoning is residential and its located among other residential properties.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
Some variances stay with the property and some are issued to the owner. When the owner sells the variance goes away.

From the sounds of your property, it doesn't matter which scenario applies. There is not enough of the property used for the very limited home-based office business to be considered a mixed-use property.
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Hunt for a proxy use (ADU, workshop, dressage area) as comps.
 

Michigan CG

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Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
I just inspected a 1800 sf 3 BR ranch with an attached 2 car garage and detached 60x40 pole barn. The owner has a variance to use 18x40 of the pole barn for office space for a 'home based office business'. Variances allows only 1 employee, no signage, 2 business vehicles, no storage of materials and no deliveries. The business has to be operated by the home owner. The zoning is residential and its located among other residential properties.

Imagine this:

Ranch house, typical of the market,
Pole barn, typical of the market,
Part of the pole barn is finished for man cave area with finished room and beer frig.

That is the market (in my area).

Who is the typical buyer?
 

Rlong

Member
Joined
Jan 31, 2002
Professional Status
Certified General Appraiser
State
Colorado
Tou'll need to do an actual H&BU analysis for this report. Describe the (residential?) zoning and allowed uses. I'm assuming this is not in an actual commercial or mixed-use district, but that will be in your analysis. The preprinted text on the 1004 doesn't cover this.
 

BRCJR

Elite Member
Gold Supporting Member
Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
Stand in the road looking at the property. Ask this question, "who would buy this property and why"?
Is it really a mixed use or just a residential property with a customization pole barn?
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
Imagine this:

Ranch house, typical of the market,
Pole barn, typical of the market,
Part of the pole barn is finished for man cave area with finished room and beer frig.

That is the market (in my area).

Who is the typical buyer?

Sounds like my area (and my house).
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I just inspected a 1800 sf 3 BR ranch with an attached 2 car garage and detached 60x40 pole barn. The owner has a variance to use 18x40 of the pole barn for office space for a 'home based office business'. Variances allows only 1 employee, no signage, 2 business vehicles, no storage of materials and no deliveries. The business has to be operated by the home owner. The zoning is residential and its located among other residential properties.

It is what you described, residential property with a pole barn with a variance to use the pole barn for a one employee home based business. That does not make it " mixed use", it makes it residential use with a variance for the detached pole barn to be used as a home owner run office business...note it says OFFICE business with no deliveries no material storage etc. Just because zoning allows that does not mean every buyer would use the pole barn for that purpose. Keep in mind many owners use part of their house or detached building as a r home office use even with plain residential zoning and no variance ( I do)
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
I just inspected a 1800 sf 3 BR ranch with an attached 2 car garage and detached 60x40 pole barn. The owner has a variance to use 18x40 of the pole barn for office space for a 'home based office business'. Variances allows only 1 employee, no signage, 2 business vehicles, no storage of materials and no deliveries. The business has to be operated by the home owner. The zoning is residential and its located among other residential properties.

Does the Variance transfer on sale to a new owner?
 
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