Derp. Our Appraisal. UPDATED

[mrs.jacinthe]

For the new house (not actually new):

Appraiser determined that the home is a commercial property because it (despite being in an HOA and in a residential area overall, as well as being ZONED residential) would not be allowed to be rebuilt as residential by the county ... since it is on a busy street. As well as was used as the sales office for the community in the past. So it is clearly commercial.

Huh?

We're looking into our options, but dang. If it isn't one thing, it's another.

(Also - FTR, I am PISSED at the appraiser. I don't think he even went inside before he determined it was commercial. Just drove by.)

They also wrote that it is in a "predominantly commercial" area. Really? I'm sure the 100+ homeowners in the HOA would be interested to know that.

[kaylie]

I get really annoyed by lazy appraisers. Appraisals are not cheap so they could at least do the job they're paid for.

I hope you can resolve it - it definitely looks like a residential house on the inside. I think the zoning should clear that up, no?

[Deleted]

Sorry for my ignorance but what does that mean for you?

[mrs.jacinthe]

At the moment, it means our mortgage won't go through because a commercial loan would be required.

We're trying to resolve the issue, by talking to the seller. Honestly, something's fishy here.

[kaylie]

Are you working with a big mortgage company or a local place?

[pitterwoo]

too weird!

[mrs.jacinthe]

It's a local mortgage broker. I am just beyond confused.

[wawa]

well shit...that sucks. There has to be a way to clear this up. Developments use houses as sales offices during the building phase ALL THE TIME. And then they sell them. As houses.

so the "previous commercial use" stuff is total bullshit.

Unless the house was under a special exception or conditional use permit of some sort then it's still just a house. But I really doubt it was because "sales office for surrounding development" is usually a permitted use under most residential zoning codes.

[Deleted]

Appraisers seem to be gun shy lately & totally being irrationally low/strict....I hope you figure something out. Good luck!

[mrs.jacinthe]

Jan 15, 2013 15:59:50 GMT -5 wawa said:

well shit...that sucks. There has to be a way to clear this up. Developments use houses as sales offices during the building phase ALL THE TIME. And then they sell them. As houses.

so the "previous commercial use" stuff is total bullshit.

Unless the house was under a special exception or conditional use permit of some sort then it's still just a house. But I really doubt it was because "sales office for surrounding development" is usually a permitted use under most residential zoning codes.

I've looked all over and I cannot find the documentation that the appraiser referenced as regards "commercial use". It's residential. In a residential, HOA-controlled neighborhood. Commercial use my ass.

[hbomdiggity]

Aren't you in ca? I know in my county I could look up the zoning for my address. This should be readily ascertained information based on county records, not what the appraiser thinks.

[mrs.jacinthe]

It's zoned residential-multiunit planned development.

(FTR, it's a single-family neighborhood, I'm guessing multiunit was used because the development was subdivided from one large property)

[Deleted]

That sucks, but if it's listed in the county records as residential, doesn't have to be residential? I don't think an appraiser just gets to walk in and change that designation.
I hope it all works out for you!

[mrs.jacinthe]

Me, too, Dairy. I'm all stressed out over it. Our REA went down to the county to see if he could find ANY record of a commercial variance being granted.

Fortunately, the lender herself is on our side. We may be able to just accumulate documentation and move past this with another appraiser, depending on what the REA finds.

[mrs.jacinthe]

I agree, sbp. I keep repeating to R, "something's NOT right" ... we're fighting. The seller, our REA, and the lender are on our side. If we can find documentation to support our opinion, we're good to go, I think.

[mrs.jacinthe]

Also, thanks for letting me vent about this ... I'm home alone and obviously the cats just don't care. LOL

[sjh722]

This happened to my cousin since his house is on a busy street with a bunch of commercial properties nearby.

If your lender will let you get another appraisal, that might be the easiest way to clear it up. Hopefully this one hasn't gone to underwriting yet!

[mrs.jacinthe]

sjh, we're actually THROUGH underwriting ... except for the appraisal. Our mortgage officer just cancelled it after seeing the appraiser's preliminary - I think to PREVENT the appraisal from carrying through to underwriting.

[mrs.jacinthe]

UPDATE: Our REA just spent literally the entire afternoon at City Hall. He has a note from the location file that the home cannot be sold commercial and must be sold residential and was only permitted non-conforming commercial until all development lots were sold.

So ... I *think* this means we're back on. Tentative hooray?

[sjh722]

Jan 15, 2013 20:11:45 GMT -5 mrs.jacinthe said:

So ... I *think* this means we're back on. Tentative hooray?

Keep your fingers crossed. I spent 3 weeks on a deal this spring battling with an underwriter about iron content in the well water. It was so little the water didn't even need a softener and it was hardly detectable on a test. I had to track down our state's standards on drinking water from a water lab, prove that another municipality's standards did not prevail and that there was not city water, and hassle them about it every.damn.day for the next 2 weeks to get them to clear it.

[mrsemilys]

Fingers crossed!!

[TBM]

Finger's crossed...maybe a few paws too.

I may or may not have done a 'tentative hooray' dance for you. HTH. lol

[sierramist03]

Fingers crossed

[pitterwoo]

good, glad you are back on track. stupid appraiser.

[kaylie]

Good, I'm glad it sounds like it's going to work out. I can't see how one idiot appraiser can just sink a deal in such a stupid way. It makes no sense.

[wawa]

That makes SO much more sense. Sale offices are such a common temporary commercial use in an otherwise residential unit that I'm shocked the appraiser was such a douchemonkey about it.

Fingers crossed that it all goes smoothly from here.