condo
493) 1004MC Condo
05/22/09
Dear H2,
On the new 1004MC -- the first one I'm doing is a condo. Should I leave the top completely blank and fill out just the condo section?
Diane Graham dgraham295@comcast.net
Dear Diane,
As I explain in my book, Harrison's Illustrated Guide: How to Fill Out the Market Conditions Addendum to an Appraisal (1004MC-71), for a condo or co-op project you must complete the whole form.
H2
Editor's note: To order your copy of the FHA Handbook, click here.
On the new 1004MC -- the first one I'm doing is a condo. Should I leave the top completely blank and fill out just the condo section?
Diane Graham dgraham295@comcast.net
Dear Diane,
As I explain in my book, Harrison's Illustrated Guide: How to Fill Out the Market Conditions Addendum to an Appraisal (1004MC-71), for a condo or co-op project you must complete the whole form.
H2
Editor's note: To order your copy of the FHA Handbook, click here.
484) Condo vs SFR
05/03/09
Dear H2,
In my neighborhood, there are many multi-families that have been converted to condos. I actually have a single family, but there are very few other single family comps in my neighborhood. Though it is technically a single family, it is attached on both sides and is really more comparable to a condo. My question is, would an appraiser ever use other condos in the neighborhood as comps? Or, since it is technically a single family, would they only look at other single families? Thanks much for your help!
Michelle O'Meara michelle112575@hotmail.com
Dear Michelle,
According to the Uniform Standards of Professional Appraisal Practice (USPAP), the final decision as to what are the best comparable sales to use and what weight to give them, as well as what adjustments to make, is always up to the appraiser. From your description, your home is a "townhouse" style single family residence. A condo is actually not a "style" at all, but rather, a form of ownership. The fact that adjacent townhouses are condos may significantly affect their value, and render them unsuitable as comparables to your home in fee simple ownership, despite their similar appearance to your home. That is something the appraiser would have to research, consider and comment on in their appraisal. It is a rare neighborhood where you cannot find any single family house sales (except in Moscow, Russia). I suggest that you expand the area where you are searching for comparable sales.
H2
In my neighborhood, there are many multi-families that have been converted to condos. I actually have a single family, but there are very few other single family comps in my neighborhood. Though it is technically a single family, it is attached on both sides and is really more comparable to a condo. My question is, would an appraiser ever use other condos in the neighborhood as comps? Or, since it is technically a single family, would they only look at other single families? Thanks much for your help!
Michelle O'Meara michelle112575@hotmail.com
Dear Michelle,
According to the Uniform Standards of Professional Appraisal Practice (USPAP), the final decision as to what are the best comparable sales to use and what weight to give them, as well as what adjustments to make, is always up to the appraiser. From your description, your home is a "townhouse" style single family residence. A condo is actually not a "style" at all, but rather, a form of ownership. The fact that adjacent townhouses are condos may significantly affect their value, and render them unsuitable as comparables to your home in fee simple ownership, despite their similar appearance to your home. That is something the appraiser would have to research, consider and comment on in their appraisal. It is a rare neighborhood where you cannot find any single family house sales (except in Moscow, Russia). I suggest that you expand the area where you are searching for comparable sales.
H2
462) Taxed Land
03/06/09
Dear H2,
I was checking out questions regarding how to determine if a property is a condominium. Other than checking the deed, I believe a good indication is to see if the land is being assessed/taxed since condominium ownership doesn't include land but rather a percentage of interest in the common areas. What do you think?
John
Dear John,
Your method is not as good as checking the deed since the subject could also be a cooperative or on leased land.
H2
I was checking out questions regarding how to determine if a property is a condominium. Other than checking the deed, I believe a good indication is to see if the land is being assessed/taxed since condominium ownership doesn't include land but rather a percentage of interest in the common areas. What do you think?
John
Dear John,
Your method is not as good as checking the deed since the subject could also be a cooperative or on leased land.
H2
425) PUD or CONDO
10/25/08
Hi H2!
I would call this question "to PUD or not to PUD?" I have never found a satisfactory way to determine if a townhouse is a condo or a PUD. The latest go-around was when the Zoning office and the management agent said it was NOT a PUD, but a CONDO. The client said that since the title report had its description as metes and bounds, it was a PUD. I wrote up that the client declared this as part of their statement regarding the scope of work. Any advice on this "cloudy" issue?
Many thanks,
Larry Kowitt KowittL@aol.com
Dear Larry,
A condominium is not a style -- it is a form of ownership. A townhouse is a style, but it can be owned in a variety of ways. Sometimes it seems confusing because a condominium can be within a PUD. All 50 states have condominium laws which are very similar to each other. As far as I know, all of them require that the deed to the property indicate that it is a condominium. Therefore, if the deed is silent, the property is not a condominium.
It is not quite as simple for a PUD, but generally the deed will also indicate if the property is located within a PUD. Any real estate attorney in your state should be able provide this information.
H2
I would call this question "to PUD or not to PUD?" I have never found a satisfactory way to determine if a townhouse is a condo or a PUD. The latest go-around was when the Zoning office and the management agent said it was NOT a PUD, but a CONDO. The client said that since the title report had its description as metes and bounds, it was a PUD. I wrote up that the client declared this as part of their statement regarding the scope of work. Any advice on this "cloudy" issue?
Many thanks,
Larry Kowitt KowittL@aol.com
Dear Larry,
A condominium is not a style -- it is a form of ownership. A townhouse is a style, but it can be owned in a variety of ways. Sometimes it seems confusing because a condominium can be within a PUD. All 50 states have condominium laws which are very similar to each other. As far as I know, all of them require that the deed to the property indicate that it is a condominium. Therefore, if the deed is silent, the property is not a condominium.
It is not quite as simple for a PUD, but generally the deed will also indicate if the property is located within a PUD. Any real estate attorney in your state should be able provide this information.
H2
354) Community Apartment
06/23/08
Dear Henry,
I recently did an appraisal in which the subject's County Use is listed as "Own-Your-Own-Apt". The original Title report stated the subject as a Condominium. Now 1 week later I have received a new report from the Title company stating the subject is a "Community Apartment Project". What form would I use as the description still states it is an undivided interest?
Wendy Kramer wendy@kramernet.com
Dear Wendy,
In many ways a "Community Apartment Project" is similar to a condominium or a PUD, but they are not the same. I can find nothing in the Fannie Mae regulations about them. They seem to be quite popular in California. I think it is up to the client to decide -- as part of your scope of work discussion with them -- which form you should use. My first choice would be the URAR.
H2
I recently did an appraisal in which the subject's County Use is listed as "Own-Your-Own-Apt". The original Title report stated the subject as a Condominium. Now 1 week later I have received a new report from the Title company stating the subject is a "Community Apartment Project". What form would I use as the description still states it is an undivided interest?
Wendy Kramer wendy@kramernet.com
Dear Wendy,
In many ways a "Community Apartment Project" is similar to a condominium or a PUD, but they are not the same. I can find nothing in the Fannie Mae regulations about them. They seem to be quite popular in California. I think it is up to the client to decide -- as part of your scope of work discussion with them -- which form you should use. My first choice would be the URAR.
H2
353) Community Apartment
06/22/08
Dear Henry,
I recently did an appraisal in which the subject's County Use is listed as "Own-Your-Own-Apt". The original Title report stated the subject as a Condominium. Now 1 week later I have received a new report from the Title company stating the subject is a "Community Apartment Project." What form would I use since the description still states it is an undivided interest?
Wendy Kramer wendy@kramernet.com
Dear Wendy,
In many ways a "Community Apartment Project" is similar to a condominium or a PUD, but they are not the same. I can find nothing in the Fannie Mae regulations about them. They seem to be quite popular in California. I think it is up to the client to decide -- as part of your scope of work discussion with them -- which form you should use. My first choice would be the URAR.
H2
I recently did an appraisal in which the subject's County Use is listed as "Own-Your-Own-Apt". The original Title report stated the subject as a Condominium. Now 1 week later I have received a new report from the Title company stating the subject is a "Community Apartment Project." What form would I use since the description still states it is an undivided interest?
Wendy Kramer wendy@kramernet.com
Dear Wendy,
In many ways a "Community Apartment Project" is similar to a condominium or a PUD, but they are not the same. I can find nothing in the Fannie Mae regulations about them. They seem to be quite popular in California. I think it is up to the client to decide -- as part of your scope of work discussion with them -- which form you should use. My first choice would be the URAR.
H2
318) Condominium Or Not
05/14/08
Dear Henry,
A lender wants me to use a 1004 form for a dwelling zoned condominium. I am refusing to do this because of the pertinent data that will not be included. Who is correct?
Julie jrvitucci@ptd.net
Dear Julie,
When the appraisal is being done for Fannie Mae or Freddie Mac you should try to guide the lender to use a form that will be acceptable to them. However, it is up to the Lender/Client, as part of the scope of work, to determine what type of report they want.
Of course, you don't have to agree to do the job if you don't like their decision.
In your specific question I do not think it is the zoning that determines if the property is a condominium. It is how the property is improved and if it is in the condominium form of ownership.
H2
A lender wants me to use a 1004 form for a dwelling zoned condominium. I am refusing to do this because of the pertinent data that will not be included. Who is correct?
Julie jrvitucci@ptd.net
Dear Julie,
When the appraisal is being done for Fannie Mae or Freddie Mac you should try to guide the lender to use a form that will be acceptable to them. However, it is up to the Lender/Client, as part of the scope of work, to determine what type of report they want.
Of course, you don't have to agree to do the job if you don't like their decision.
In your specific question I do not think it is the zoning that determines if the property is a condominium. It is how the property is improved and if it is in the condominium form of ownership.
H2
218) Condo vs. Townhouse
01/22/08
Dear H2:
Condo versus townhome... How do you tell the difference? I was taught if tax records show an undivided interest, plat map says condo or premilinary title shows horizontal regime then it is a condo. I put them on a condo form and about 30% of the time the underwriter requests that I change it to a 1004.
Pat Ryan Platinumappraisals@cox.net
Dear Pat,
A condominium is a form of ownership. A townhouse is type of house. Any type of house (or other type of building) can be in condominium ownership. One sure way is to check the deed. It will always say if the ownership form is condominium. You should ask the client as part of the scope of work discussion what the ownership form is and what kind of a report they require. Most clients will know the ownership form.
H2
Condo versus townhome... How do you tell the difference? I was taught if tax records show an undivided interest, plat map says condo or premilinary title shows horizontal regime then it is a condo. I put them on a condo form and about 30% of the time the underwriter requests that I change it to a 1004.
Pat Ryan Platinumappraisals@cox.net
Dear Pat,
A condominium is a form of ownership. A townhouse is type of house. Any type of house (or other type of building) can be in condominium ownership. One sure way is to check the deed. It will always say if the ownership form is condominium. You should ask the client as part of the scope of work discussion what the ownership form is and what kind of a report they require. Most clients will know the ownership form.
H2
161) Measuring Office Condos
11/22/07
Dear Henry:
I would like to know if the proportion of common area in square feet that a professional office shares of the total common area in square feet of the floor of the building where it is located, should be added to the total office square footage when we compute the total area for sale of the office.
What is the common practice in the States, because I'm doing this in PR and I'm having a dispute with the purchaser's appraiser.
Ramon Caquias rcaquias@hotmail.com
Dear Ramon,
There is no nationally accepted standard for measuring office space. In NYC they include all kinds of common areas in the individual office space measurements. In many other areas, none of the common areas are included. Many other places use some mixture of these customs.
You are going to have to find out what the custom is in the market area where the subject property and comparable sales are located.
Sometimes it is necessary to make an adjustment just for the different way the area (square footage) was calculated for the subject property and a comparable sale. A good source is a Realtor who is active in the office rental market in your area.
H2
I would like to know if the proportion of common area in square feet that a professional office shares of the total common area in square feet of the floor of the building where it is located, should be added to the total office square footage when we compute the total area for sale of the office.
What is the common practice in the States, because I'm doing this in PR and I'm having a dispute with the purchaser's appraiser.
Ramon Caquias rcaquias@hotmail.com
Dear Ramon,
There is no nationally accepted standard for measuring office space. In NYC they include all kinds of common areas in the individual office space measurements. In many other areas, none of the common areas are included. Many other places use some mixture of these customs.
You are going to have to find out what the custom is in the market area where the subject property and comparable sales are located.
Sometimes it is necessary to make an adjustment just for the different way the area (square footage) was calculated for the subject property and a comparable sale. A good source is a Realtor who is active in the office rental market in your area.
H2
160) Single Family on a Condo Lot
11/21/07
Dear Henry:
I've been asked to do an FHA appraisal for a detached single-family property that sits on a 15-lot condominium lot. The property was appraised several years ago by another appraiser for FHA, he disclosed the fact that the land was in fact condo-ed, and FHA went ahead and approved the loan. (The condominium is not on HUD's approved list.) What do I do?
Thanks!
Thomas A. Tully tully.thomas@alumni.ksg.harvard.edu
Dear Thomas,
Have a heart to heart Scope of Work talk with your client. Tell them what you know and ask them what form they want you to use. Get your instructions in writing so you don't have problems later if things go wrong for the client. Then agree to do the assignment assuming you can find enough comparable sales data to make a credible appraisal.
H2
I've been asked to do an FHA appraisal for a detached single-family property that sits on a 15-lot condominium lot. The property was appraised several years ago by another appraiser for FHA, he disclosed the fact that the land was in fact condo-ed, and FHA went ahead and approved the loan. (The condominium is not on HUD's approved list.) What do I do?
Thanks!
Thomas A. Tully tully.thomas@alumni.ksg.harvard.edu
Dear Thomas,
Have a heart to heart Scope of Work talk with your client. Tell them what you know and ask them what form they want you to use. Get your instructions in writing so you don't have problems later if things go wrong for the client. Then agree to do the assignment assuming you can find enough comparable sales data to make a credible appraisal.
H2
114) Condo Vs. Townhouse?
07/18/07
Dear Henry,
I am an apprentice in SC and am having a problem distinguishing the difference between a condominium and a townhouse. I can't seem to find anything that gives me a definitive answer. In the MLS listings some will show a site size and others will not. Do you show a site size for a condo? Do you show a site size for a townhouse? What is the difference between the two? I am confused.
Thanks for you help. By the way, I love the online magazine [www.revmag.com] and I have several of your books including the Harrisons' Illustrated Dictionary of Real Estate and Appraisal.
Eloise Sullivan esulli8@comporium.net
Dear Eloise,
A condominium is a form of ownership. It can be a single family house, townhouse, apartment house, office bldg. etc. The deed to the property will always indicate that it is in condominium form of ownership. The owner will also know this, as there will be an HOA (homeowners' association) to which they must pay fees (usually assessed monthly).
A townhouse is a type of building with a common wall connected to another unit. The ownership may vary and can be in fee simple, PUD or Condo form.
H2
I am an apprentice in SC and am having a problem distinguishing the difference between a condominium and a townhouse. I can't seem to find anything that gives me a definitive answer. In the MLS listings some will show a site size and others will not. Do you show a site size for a condo? Do you show a site size for a townhouse? What is the difference between the two? I am confused.
Thanks for you help. By the way, I love the online magazine [www.revmag.com] and I have several of your books including the Harrisons' Illustrated Dictionary of Real Estate and Appraisal.
Eloise Sullivan esulli8@comporium.net
Dear Eloise,
A condominium is a form of ownership. It can be a single family house, townhouse, apartment house, office bldg. etc. The deed to the property will always indicate that it is in condominium form of ownership. The owner will also know this, as there will be an HOA (homeowners' association) to which they must pay fees (usually assessed monthly).
A townhouse is a type of building with a common wall connected to another unit. The ownership may vary and can be in fee simple, PUD or Condo form.
H2
108) Doing HUD Appraisals
06/17/07
How are you doing Henry? I just became an FHA
appraiser and I wanted to know what books I can buy
from you which will help me on filling out the forms
and creating my first FHA appraisals.
The forms that I am going to be using are the 1004 URAR, and the 1073 Individual condominium unit appraisal report.
Eddy Del Valle eddyapp@adelphia.net
Dear Eddy,
If you are going to do FHA appraisals, my illustrated guides will help you. They cover these forms on a line-by-line basis and include Model Comments as well as Consistency Checks. You can order them online at www.formsandworms.com or call them Toll Free at 1-800-243-4545.
You will also need HUD's Housing Manual 4150.2 which can be downloaded at www.HUD.GOV or a hard copy purchased from them by calling 1-800-767-7468.
H2
The forms that I am going to be using are the 1004 URAR, and the 1073 Individual condominium unit appraisal report.
Eddy Del Valle eddyapp@adelphia.net
Dear Eddy,
If you are going to do FHA appraisals, my illustrated guides will help you. They cover these forms on a line-by-line basis and include Model Comments as well as Consistency Checks. You can order them online at www.formsandworms.com or call them Toll Free at 1-800-243-4545.
You will also need HUD's Housing Manual 4150.2 which can be downloaded at www.HUD.GOV or a hard copy purchased from them by calling 1-800-767-7468.
H2