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Gunnel

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Reply with quote  #1 
I am appraising a rental property (no rent schedule or I&O  required).  The main house has an addition and there is a very small guest house occupied by a family member of the renters.  This guest house has no permanent heat, just a portable heater and window A/C.  I do not care about the A/c.  However, is this guest house considered habitable with no permanent heat.  Water, sewer and electricity is billed to the main building, per occupant of the guest house.  Property is located in "historic" Fairburn  Cannot find a comparable sale within miles.  Does this 350+/- sf structure have value?  There is one room and a bath, sort of a kitchen with sink, no stove, a small ref. and a very small dishwasher.  the "kitchen area is no more than 3' by 5'.  I suppose one could use it as guest lodging but not a rental.  I, of course, need an answer quick.
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Nomad

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I would value it as a shed and state that a typical consumer in this market would not pay more for this feature. It’s probably a non permitted POS.
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Gunnel

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Reply with quote  #3 
I just spoke with the City of Fairburn, it is a non-habitable unit.  It also does not have a permanent foundation on all 4 sides.  I am giving it no value.
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Gunnel

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Reply with quote  #4 
Nomad, I forgot to say thank you. It was, most likely, a shed prior to being converted to "living space".  Spoke with an appraiser at the AMC who is always a good resource, and he came, after seeing the photos and the report, to the same conclusion.  The Borrower will not be happy when I render my opinion.  Well, what else is new?
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BillDing

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Reply with quote  #5 
Quote:
Originally Posted by Gunnel
I just spoke with the City of Fairburn, it is a non-habitable unit.  It also does not have a permanent foundation on all 4 sides.  I am giving it no value.


That's fine if it truly has no contributing value.  But even nice sheds can have contributing value.  It could be used as an office. Lack of comps does not mean lack of value.  I suggest you talk to some of the local RE agents to get their take on it.

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RubberStamp

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Reply with quote  #6 
Quote:
Originally Posted by BillDing


That's fine if it truly has no contributing value.  But even nice sheds can have contributing value.  It could be used as an office. Lack of comps does not mean lack of value.  I suggest you talk to some of the local RE agents to get their take on it.


BD its PP

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We argue this: Meanwhile the agent's assistant just did 5 unofficial appraisal inspections they paired with a Zestimate and granted 90% LTV - all guaranteed no buy back.
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Meatloaf

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Reply with quote  #7 
It doesn't have a permanant foundation on all 4 sides??? Does it have a permanant foundation on one side? I am confused.
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Gunnel

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Reply with quote  #8 
Jodi, it has parts of a permanent foundations, parts that "hang in the air" and part with a very poor peeling broken foundation.  I gave it no value and have not heard back. Maybe the lender did not like the fact that it was tenanted.  Besides , if you were pregnant it would be hard to move around, almost. No stove, counter top micro  "kitchen is so small that if you turn around you are in the bedroom area which is abt 2' from the living area.  Cracks in the ceiling  seems.  I'll let you when and if I get any complaints.
By the way, I am still kicking despite a bout with cancer.  So, Jody do not think that I will let up on you.  Love harasining you as much as you love harassing me.  Peace, my friend.
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Meatloaf

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Reply with quote  #9 
If any part of the foundation is "permanent" then all of the foundation is permanent.





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RubberStamp

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Reply with quote  #10 
Quote:
Originally Posted by Meatloaf
If any part of the foundation is "permanent" then all of the foundation is permanent.




 
Interesting.  Please cite your source.

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We argue this: Meanwhile the agent's assistant just did 5 unofficial appraisal inspections they paired with a Zestimate and granted 90% LTV - all guaranteed no buy back.
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MEP

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Reply with quote  #11 
"Jody's Bible on Appraising"...1st addition
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M. E.

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Anna

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Reply with quote  #12 
Gunnel, could it be used as a storage unit? 


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Meatloaf

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Reply with quote  #13 
Quote:
Originally Posted by RubberStamp
 
Interesting.  Please cite your source.


Picture a wheel on a car.  It has 4 lug nuts.  One lug nut is welded down making it permanently attached.  Does it make a crap if the other three are loose?  The wheel is still a permanent fixture although three of the four nuts are not permanent.

Same thing with a house... If one side is determined to be permanent then the whole house must be considered permanent.

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