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Zoning Rant & Question

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xmtpedprl

Thread Starter
Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
Hello fellow Illini,

I recently (a few months back) did about the most difficult Multi-Family assignment imaginable - a 4 unit in Willow Springs.

This was for a sale, and although I was paid very well for the job (the previous appraiser fell flat on his face, the U/W threw the report out), I was the "bad guy" because I did two things honestly that he did not - I hit it for declining market and stated the zoning properly.

Now, this zoning? Man, what a trip. This building is zoned SFR, not MF in any sense of the word or potential. In fact, NO REBUILD would be allowed. I asked, double asked, and triple asked the Willow Springs guy, (he was not a cheery fellow, either!), wrote the whole thing up, word for word, and figured the owner, buyer and certainly the lender, would have their way with him after my repot was submitted. I honestly thought he'd change it for this owner, at least to 'Legal Nonconforming.'

Ah, but no dice, he didn't budge. NO REBUILD for this building. Nada.

So, the deal didn't close, and back on the market it went. And, to this day, they are STILL lying about the zoning on that listing!! It's stated to be Multi-Family.

So, my question is, how can they get away with that, as ALL PARTIES KNOW. I made that abundantly clear in my refusal to change it. They know, the deal died because of it.

Anyway, the next appraiser might not even check, you know? And the whole thing might go through. It would have the first time if the report wasn't so lousy in other areas.

So, there ya have it! Vent all done.

Dave...
 

Suz-E

Senior Member
Joined
Apr 17, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
Yeah, you're right. The next appraiser might not check. In fact, they'll probably just put "R", like every other report that passes through my hands.

Zoning is one of my pet peeves. It seems no one really gives a [email protected] what they put in the report. :wacko:
 

xmtpedprl

Thread Starter
Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
It's not just that it was stated to be legal, it wasn't even the right zoning. The report said R-1, and legal, it was, in fact, R-4. Had it not been for other (obvious to the U/W) issues that thing would have skated right through.

I dunno, it's just frustrating, that's all.

Dave...
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Dave, I suggest that you contact the MLS and inform them of the incorrect information. I believe that they do not take such things lightly.

Lee
 

xmtpedprl

Thread Starter
Senior Member
Joined
Dec 6, 2005
Professional Status
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State
Florida
Will do, Lee.

What about the appraisers who do them, my friend?

Dave...

Update - Illinois Association of Realtors has been contacted. We'll see what happens.
 
Last edited:

Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I had that years ago with a flood plain situation. The subject had an adjacent extra lot that was in an adverse flood zone. You would have never guessed it, there were no bodies of water nearby and just the extra lot was in this isolated zone. I gave some additional value to the extra lot (surplus) as part of the 'package' with the subject, but it certainly had no value by itself (excess).

The homeowner was extremely upset because they thought this extra lot had the same value as other vacant lots throughout the town. They refused to pay for the appraisal.

These people put their house on the market and sold it to a buyer without disclosing the flood zone AND the appraiser for that deal also missed the flood zone.

These smart homeowners felt vindicated by their sales price and second misleading appraisal until it became known to the buyers that the sellers committed fraud. They eventually got much less for the whole package as a result of losing a lawsuit.

Perhaps the eventual buyers of your subject property will become aware of the zoning after-the-fact and also decide to sue the incompetent parties.

It goes without saying that this sort of data (flood zone, zoning) is all publicly available data that is not considered confidential by any sense of the definition.

Hell hath no fury like an unpaid appraiser....
 
Last edited:

Suz-E

Senior Member
Joined
Apr 17, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
I had that years ago with a flood plain situation. The subject had an adjacent extra lot that was in an adverse flood zone. You would have never guessed it, there were no bodies of water nearby and just the extra lot was in this isolated zone. I gave some additional value to the extra lot (surplus) as part of the 'package' with the subject, but it certainly had no value by itself (excess).

The homeowner was extremely upset because they thought this extra lot had the same value as other vacant lots throughout the town. They refused to pay for the appraisal.

These people put their house on the market and sold it to a buyer without disclosing the flood zone AND the appraiser for that deal also missed the flood zone.

These smart homeowners felt vindicated by their sales price and second misleading appraisal until it became known to the buyers that the sellers committed fraud. They eventually got much less for the whole package as a result of losing a lawsuit.

Perhaps the eventual buyers of your subject property will become aware of the zoning after-the-fact and also decide to sue the incompetent parties.

It goes without saying that this sort of data (flood zone, zoning) is all publicly available data that is not considered confidential by any sense of the definition.

Hell hath no fury like an unpaid appraiser....


THAT is a great story, Pat. I love it!
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I just did a FHA appraisal last week that was zoned BP/TO, Business & technology park/Technology Overlay Zone. I called the zoning office and they said the subject could be used for a SFR and it could be rebuilt as a SFR but it had to be approved by the governing authority. I figure I will be getting a few calls about this.
 

xmtpedprl

Thread Starter
Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
That zoning. It'll kill you dead. At least yours can be rebuilt. Mine was DOA.

I recently did a MF on the Southwest Side (38th Street) where the PRIMARY building was a brick 4 unit, BUT, there was a 2nd building, a Raised Ranch, on the SAME PIN. Owner lived in that building, rented the 4 Unit. The last THREE APPRAISERS overlooked that extra building, appraised the whole property as a legal 4unit (managing to exclude ANY MENTION of that extra home) and allowed this Latin American lady to obtain a residential loan. And here's the kicker:

The whole she-bang was in an M-1 zoning. No rebuild gonna be granted on her buildings. There's a bus company gobbling up land in that area, and they want her property to 'go away' so they can expand parking, or whatever they're up to.

So, she's already over mortgaged, the last three appraisers are to blame, and no one will hep this lady. I did a full review on her last apprasal, and helped her into the hands of Lisa Madigan and Hope Now, BUT BOTH just blew her off.

I am disgusted at this situation, and am seeing it more and more. An actual victim of fraud, and nobody cares.

Dave...
 

xmtpedprl

Thread Starter
Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
Response from the Illinois Asociation of Realtors

This is just incredible:


Thank you for your e-mail.

You have reached a service that is provided to dues paying members of the Illinois Association of REALTORS. If you wish to file a complaint or inquire further about the legal guidelines real estate licensees must follow you can contact the IL Dept. of Financial and Professional Regulation (IDFPR) by phone at 312.793.8704 or www.idfpr.com. Know that real estate licensees who are REALTOR members are also bound by a strict Code of Ethics. REALTOR complaints start at the member’s local association of REALTORS, http://www.illinoisrealtor.org/iar/about/local.html.

I hope you find this information helpful.


I help them out and the advise me to take it elsewhere. There is just no way to do anything easily these days, no wonder there's so much b.s. going on.

Dave..
 
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