detached
358) Two Family Detached
07/11/08
Dear Henry,
Every now and then an appraiser runs into a situation where there are two houses located on one parcel. The definition of a single family dwelling is that of one dwelling unit. In a case where you have two houses on one parcel, it seems to me that it has to be appraised as either a two-family dwelling or a single family dwelling with an accessory unit. In the case where it is appraised as single family with an accessory unit, on the URAR form, a single line adjustment is usually made in the sales comparison grid reflecting the accessory unit. Of course the contributory value is nowhere near what it would be if the second house were located on its own parcel. Almost every residential appraiser I've spoken with has stated this but some commercial appraisers I know think that you should just add the square footage of both dwellings together. I don't see how you could do that. What are your thoughts? Do you know of any printed material that addresses this situation?
Ed Bedinotti efb803@aol.com
Dear Ed.,
I know of nothing that directly addresses your question. However, in many areas the zoning ordinances spell out what type of an accessory unit can be put on a lot that is zoned for single family residential use. Also, I know of nothing that says that a two family house requires a physical connection. The USPAP says that the value that is estimated is the highest and best use and that one of the parts of the definition of highest and best use is that it must be a legal use. It seems to me if the property is zoned to permit a two family house and this is the highest and best use, then it ought to be appraised as a two family house using the Small Income Property Appraisal Report form (Fanne Mae 1025). On the other hand, if the zoning only permits single family houses with an accessory unit, then the highest and best use could not be a two family house and the URAR would be the appropriate form to use. Another possibility is that the highest and best use would be to divide the parcel into two sites and then it could be appraised as two single family houses. The bottom line is that as the appraiser, you need to explain all this to the client as part of the scope of work dialogue, and have them decide what type of report they require.
H2
Every now and then an appraiser runs into a situation where there are two houses located on one parcel. The definition of a single family dwelling is that of one dwelling unit. In a case where you have two houses on one parcel, it seems to me that it has to be appraised as either a two-family dwelling or a single family dwelling with an accessory unit. In the case where it is appraised as single family with an accessory unit, on the URAR form, a single line adjustment is usually made in the sales comparison grid reflecting the accessory unit. Of course the contributory value is nowhere near what it would be if the second house were located on its own parcel. Almost every residential appraiser I've spoken with has stated this but some commercial appraisers I know think that you should just add the square footage of both dwellings together. I don't see how you could do that. What are your thoughts? Do you know of any printed material that addresses this situation?
Ed Bedinotti efb803@aol.com
Dear Ed.,
I know of nothing that directly addresses your question. However, in many areas the zoning ordinances spell out what type of an accessory unit can be put on a lot that is zoned for single family residential use. Also, I know of nothing that says that a two family house requires a physical connection. The USPAP says that the value that is estimated is the highest and best use and that one of the parts of the definition of highest and best use is that it must be a legal use. It seems to me if the property is zoned to permit a two family house and this is the highest and best use, then it ought to be appraised as a two family house using the Small Income Property Appraisal Report form (Fanne Mae 1025). On the other hand, if the zoning only permits single family houses with an accessory unit, then the highest and best use could not be a two family house and the URAR would be the appropriate form to use. Another possibility is that the highest and best use would be to divide the parcel into two sites and then it could be appraised as two single family houses. The bottom line is that as the appraiser, you need to explain all this to the client as part of the scope of work dialogue, and have them decide what type of report they require.
H2
347) Detached vs Attached
06/16/08
Good Morning Henry:
Could you please clarify what the definition is for a property type classified as DETACHED versus a property type classified as ATTACHED? For an appraisal assignment of a 2 unit duplex on two levels, what would be the accurate property type on the appraisal?
Sue Erzinger serzinger@baylake.com
Dear Sue,
Attached means that the units have at least one common wall or floor/ceiling. Detached means they have no common walls or floors. Since the floor of the upper unit is the ceiling of the lower unit, they are considered ATTACHED.
H2
Could you please clarify what the definition is for a property type classified as DETACHED versus a property type classified as ATTACHED? For an appraisal assignment of a 2 unit duplex on two levels, what would be the accurate property type on the appraisal?
Sue Erzinger serzinger@baylake.com
Dear Sue,
Attached means that the units have at least one common wall or floor/ceiling. Detached means they have no common walls or floors. Since the floor of the upper unit is the ceiling of the lower unit, they are considered ATTACHED.
H2
127) Attached or Detached?
09/02/07
Dear HENRY,
On the 1025 form there is a section under general description asking \"attached or detached.\"
For a two to four unit property with attached units, i have always put \"attached\" because they share a wall or ceiling to floor. I thought that \"detached\" would be a situation where there are multiple units on a parcel that are not attached. Ie: a duplex to the front of the lot and a cottage to the rear of the lot, which would make for 3 total units -- two that are attached and one that is detached.
Please advise as to what is correct.
JOSEPH MAZUREK JMAZUREK@SBCGLOBAL.NET
Dear Joe,
I agree that detached usually refers to two separate buildings, not a typical 2, 3 or 4 family house. There are some gray situations such as the one that you describe. It doesn't really matter which box you check as long as you clearly explain in the comments or in the addenda what you found when inspecting the property. Pictures and sketches are also helpful, especially in such a case.
H2
On the 1025 form there is a section under general description asking \"attached or detached.\"
For a two to four unit property with attached units, i have always put \"attached\" because they share a wall or ceiling to floor. I thought that \"detached\" would be a situation where there are multiple units on a parcel that are not attached. Ie: a duplex to the front of the lot and a cottage to the rear of the lot, which would make for 3 total units -- two that are attached and one that is detached.
Please advise as to what is correct.
JOSEPH MAZUREK JMAZUREK@SBCGLOBAL.NET
Dear Joe,
I agree that detached usually refers to two separate buildings, not a typical 2, 3 or 4 family house. There are some gray situations such as the one that you describe. It doesn't really matter which box you check as long as you clearly explain in the comments or in the addenda what you found when inspecting the property. Pictures and sketches are also helpful, especially in such a case.
H2
26) Attached Vs. Detached Garage
12/14/06
Dear Henry,
Is an adjustment to be made for an attached garage versus a detached garage?
Charlie calkiva@aol.com
Dear Charlie,
You have to make a decision about what different physical characteristics between the subject and the comparable sales need to be adjusted. There is no standard rule -- it is a matter of judgment based on what goes on in your market area.
Often there is an adjustment needed for the difference between an attached garage and a detached garage, but not always.
H2
Is an adjustment to be made for an attached garage versus a detached garage?
Charlie calkiva@aol.com
Dear Charlie,
You have to make a decision about what different physical characteristics between the subject and the comparable sales need to be adjusted. There is no standard rule -- it is a matter of judgment based on what goes on in your market area.
Often there is an adjustment needed for the difference between an attached garage and a detached garage, but not always.
H2
20) Breezeway To Garage
12/11/06
Dear Henry,
Is a garage with a breezeway considered attached or detached?
Linda Phillips lphillips@communityfirstbank.net
Dear Linda,
Where I come from, a garage with an unenclosed breezeway is considered to be a detached garage. It may be different in your market area.
It really doesn't make much difference what you call it, as long as you clearly describe it in the comments and explain what it is. If your comps have attached garages which open directly into the house, however, I'd be careful to adjust for any difference in market acceptability.
H2
Is a garage with a breezeway considered attached or detached?
Linda Phillips lphillips@communityfirstbank.net
Dear Linda,
Where I come from, a garage with an unenclosed breezeway is considered to be a detached garage. It may be different in your market area.
It really doesn't make much difference what you call it, as long as you clearly describe it in the comments and explain what it is. If your comps have attached garages which open directly into the house, however, I'd be careful to adjust for any difference in market acceptability.
H2