compensation
407) Adult Care Center
09/12/08
Hi Henry,
I am a certified residential real estate appraiser in Arizona. I have been asked to appraise a single family home that is being used as an adult care home. I faintly remember in one of my classes over the years that if you ever get an order for one of these that you should turn it down! The MLS listing on this property was under "business opportunity" as oposed to being listed as a residential home.
Brad Whitmore dawnwhitmore@qwest.net
Dear Brad,
You probably got good advice back in your class, as the fee you will get will unlikely compensate you adequately for the amount of work involved.
The trouble starts with the scope of work dialogue. Does the client want an appraisal of a going business or a single family house? If it is a going business, you are going to have to determine — as part of your highest and best use analysis — if this is a legal use.
Then you going to have to get comparable sales of other similar properties, with the same use. If it is not a legal use and the client wants it appraised as a single family house, you will have to determine what renovations are needed to convert it back to that use. Keep in mind that the USPAP requires that you be qualified to do the assignment or that you get whatever help is needed. You also should determine what type of report the client needs. None of this is impossible — it is just a question of whether you will be paid for the time and energy it will take to do a good job.
H2
I am a certified residential real estate appraiser in Arizona. I have been asked to appraise a single family home that is being used as an adult care home. I faintly remember in one of my classes over the years that if you ever get an order for one of these that you should turn it down! The MLS listing on this property was under "business opportunity" as oposed to being listed as a residential home.
Brad Whitmore dawnwhitmore@qwest.net
Dear Brad,
You probably got good advice back in your class, as the fee you will get will unlikely compensate you adequately for the amount of work involved.
The trouble starts with the scope of work dialogue. Does the client want an appraisal of a going business or a single family house? If it is a going business, you are going to have to determine — as part of your highest and best use analysis — if this is a legal use.
Then you going to have to get comparable sales of other similar properties, with the same use. If it is not a legal use and the client wants it appraised as a single family house, you will have to determine what renovations are needed to convert it back to that use. Keep in mind that the USPAP requires that you be qualified to do the assignment or that you get whatever help is needed. You also should determine what type of report the client needs. None of this is impossible — it is just a question of whether you will be paid for the time and energy it will take to do a good job.
H2