Home Buying in Michigan>Question Details

Hudson Lee, Home Buyer in Georgia

We are trying to buy an old school building to live in but are having a hard time getting an appraisal.

Asked by Hudson Lee, Georgia Sat Apr 5, 2008

Mortgage companies are telling us that they won't be able to get an appraisal of the property because there are no similar residences in the area to compare it too. Any advice on how to accurately and successfully get the property appraised as a residence (not a commercial property)?

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What you need to do is contact a certified or certified general appraiser to determine the highest and best use of the property and its value as commercial and residential. You also need to check if the property can be rezoned as residential. I get the impression the "old school building" is a stand along single structure or are there additional structures on the property? Other factors that need to be taken into consideration for an appraisal would be the location, lot or site size, square footage of the building(s), the market area, replacement cost, value of the land itself, and renovation/rehab/remodeling costs. As for finding comparables, there are always properties that can be used based on certain search criterias and necessary and appropriate adjustments. After checking on the zoneing and consulting with an appraiser, then you can decide if it is worth it and how much financing you can get if you decide to do it. Most likely you will have to put up more than 20% down.
0 votes Thank Flag Link Sat Apr 5, 2008
Hudson, Is the property zoned residential now? If not, that may be part of the problem. I would have to agree with Missy, this takes the right local appraiser.

Lenders are very conservative right now and it may be that there are no similar properties. How old is this building?
0 votes Thank Flag Link Sat Apr 5, 2008
Honestly you have the wrong mortgage company. Any licensed appraiser can appraise the property. There are commercial appraisers and residential and some do both. My advice find a new lender. Lenders work with certain ones and perhaps one of theirs doesn't want to take the challenge on.
Web Reference: http://MissyCaulk.com
0 votes Thank Flag Link Sat Apr 5, 2008
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