If you live in York or Lancaster Counties, or the surrounding area, you’ve probably heard of The Accomac Restaurant. The Restaurant was popular among locals but closed in 2018. The property has been on and off the market for the last 5 plus years, but yet nothing has reopened in its place. Recently our office received a call from not one, but two potential buyers asking if we thought the property could be converted to a residential use, and this got us thinking. If a property has been marketed as a commercial use, with multiple price drops, and the only people who seem interested in purchasing it want to use it has their primary residence, is the highest and best use really commercial? The answer is most likely no! The property lacks a kitchen on the main level, and there isn’t a tub or shower anywhere on the property, but this certainly doesn’t mean that it couldn’t be converted. Both of the potential buyers we spoke with indicated that they would be doing a construction loan and would hire a contractor to redo the floor plan of the property to turn it into a more traditional layout.
The next challenge then becomes how do you appraise a converted, river front, restaurant?? The answer isn’t as simple as just declining the appraisal and hoping someone else does it. It is a meticulous process that proves appraising is both an art and a science. The most important part about appraising unique properties is making sure that the appraiser is well versed in the market that the property is located in. Does the market put value water frontage; how will the market react to the extra square footage that was previous warehouse space? These are all questions the appraiser must answer.
No matter what type of property you are appraising there are always going to be some unique aspects. The key is understanding market reactions to these aspects (the art), and then using appraisal methods for determining the appropriate comparables and accurate adjustments (the science). When appraising unique properties comparables might not be close by and they might not be recent sales, but so long as an educated and competent appraiser can determine the appropriate adjustments, you will be able to have a good understanding of what these unique properties are worth to buyers in the market.
If you have questions about a unique property you have, call us, we love to answer these types of questions!