duplex
356) Triplex or Duplex
06/25/08
Dear H2,
I have been asked to appraise a property which is recorded as a Triplex. This property was originally built as two buildings, a SFR and a duplex. The owner has removed the wall separating the units in the duplex and made it into a SFR without a permit. Therefore, currently there are 2 SFRs on this parcel of land -- at least in terms of use. A search for sold Triplex comparables returned one sale (10 months old) in a 1.5 mile radius; however there are plenty of duplex comparables in the area. In your opinion, should I be using duplexes as comparables or go to neighboring communities and try to find triplexes. Please advise.
Frank Farahani quickcomps@gmail.com
Dear Frank,
I think you should use both. Keep in mind that the value you estimate is based on the highest and best use of the property and that the highest and best use must be a legal use.
H2
I have been asked to appraise a property which is recorded as a Triplex. This property was originally built as two buildings, a SFR and a duplex. The owner has removed the wall separating the units in the duplex and made it into a SFR without a permit. Therefore, currently there are 2 SFRs on this parcel of land -- at least in terms of use. A search for sold Triplex comparables returned one sale (10 months old) in a 1.5 mile radius; however there are plenty of duplex comparables in the area. In your opinion, should I be using duplexes as comparables or go to neighboring communities and try to find triplexes. Please advise.
Frank Farahani quickcomps@gmail.com
Dear Frank,
I think you should use both. Keep in mind that the value you estimate is based on the highest and best use of the property and that the highest and best use must be a legal use.
H2
331) Duplex Exterior Only Appraisal
05/31/08
Dear Henry,
Can I do an exterior duplex appraisal? If so, which form should I use?
Sondi Eden sondieden@hotmail.com
Dear Sondi,
What form you use is decided by you and your client as part of the scope of work discussion. I assume from your question that the appraisal is not going to be used for a mortgage to be sold to Fannie Mae or Freddie Mac as I doubt they would accept an exterior-only appraisal. If you would normally use a Small Income Property Appraisal Report then I see no reason not to use it if it is acceptable to the client. You could also used a short form narrative or the new AI Residential Summary Appraisal Report form. Keep in mind that no matter what form you use, in order to make a "credible appraisal" which is required by the USPAP, you are going to need information about the interior of the property or base your appraisal on assumptions you make about the interior of the property which is very tricky. (Note: The USPAP does not require an interior inspection) Also remember that it is against the USPAP to make an appraisal that you think might be used to defraud someone.
H2
Can I do an exterior duplex appraisal? If so, which form should I use?
Sondi Eden sondieden@hotmail.com
Dear Sondi,
What form you use is decided by you and your client as part of the scope of work discussion. I assume from your question that the appraisal is not going to be used for a mortgage to be sold to Fannie Mae or Freddie Mac as I doubt they would accept an exterior-only appraisal. If you would normally use a Small Income Property Appraisal Report then I see no reason not to use it if it is acceptable to the client. You could also used a short form narrative or the new AI Residential Summary Appraisal Report form. Keep in mind that no matter what form you use, in order to make a "credible appraisal" which is required by the USPAP, you are going to need information about the interior of the property or base your appraisal on assumptions you make about the interior of the property which is very tricky. (Note: The USPAP does not require an interior inspection) Also remember that it is against the USPAP to make an appraisal that you think might be used to defraud someone.
H2