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Financing proves an obstacle for ADUs

Housing Wire

Specifically, there is a high cost in constructing accessory dwelling units – or ADUs – which are secondary residences on a land parcel zoned for single-family housing. Homeowners constructing an ADU – whose total build costs run over $150,000, according to the report – use cash out refinances, home equity loans, and renovation loans.

Finance 367
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Helping Lenders Navigate the Commercial Real Estate Appraisal Process

Simonson Real Estate

In 2022, Simonson Appraisals completed a steady stream of financing assignments with planned new construction or significant proposed renovations. On several occasions, we were presented information about construction or renovation plans well after the initial assignment was started.

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7 Top-Rated Appraisal Job Aids (Free for Members)

McKissock

Commercial Real Estate Leases In this job aid, you will find a table outlining the five main types of commercial leases and the expenses that landlords and tenants usually bear according to these types of leases. Learn about the benefits of membership. We’ve scoured the internet to share numerous resources and useful links.

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Gross Living Area Discrepancies with Public Data May Differ and How They Occur

Boston Appraisal

Everything from the number of bedrooms to the quality of the construction. This is because construction rules frequently require at least a 7-foot ceiling height for spaces to be considered usable and livable. A small, independent living area constructed on the same property as a single-family home is referred to as an accessory unit.

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Gross Living Area Discrepancies with Public Data May Differ and How They Occur

Boston Appraisal

Everything from the number of bedrooms to the quality of the construction. This is because construction rules frequently require at least a 7-foot ceiling height for spaces to be considered usable and livable. A small, independent living area constructed on the same property as a single-family home is referred to as an accessory unit.

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Eleven Types of Risk in Commercial Real Estate

Property Metrics

Similarly, leased property includes a risk that tenants will not be able to make timely lease payments as expected. Late payments can create cash flow problems for the property owner, but the situation can be worse if the tenant goes out of business and moves out of the space. Inflation Risk. Macroeconomic Risk. Interest Rate Risk.

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Yield on Cost: A Beginner’s Guide

Property Metrics

The development spread tells you how much additional return you are earning in exchange for taking on all of the risk of construction and development. Depending on the context, yield on cost is also commonly referred to as the going-in cap rate, development yield, return on cost, cost cap rate, or build-to rate. Yield on Cost Formula.