2 Condo Units, Or One Duplex?

[Midwest Guy]

I have an assignment to appraise a two unit property for a client. Problem is that the two family building has been divided into two seperate condos, by the developer.

One buyer has a contract that includes both units. I am not sure if I can combine the two units into one property or if I must insist on two seperate assignments. The two units make up the entire building!

The more I think this one out, the more I believe that I need this to be two assignments. :glare:

 

[Dean McMillan]

...The more I think this one out, the more I believe that I need this to be two assignments. :glare:

Seems you are on the right path. Think in terms of how it is legally owned/defined (2 separate units) and HBU.

 

[Marcia Langley]

Each single family condo unit appraised one at a time is residential appraising.

The entire condo project appraised as a whole is commercial appraising.

The sum of the two residential appraisal opinions should never be assumed to be equal to the commercial appraisal opinion.

 

[Kevin A. Spellman]

Was the subject’s property marketed as a two separate condominiums? A specific buyer has chosen to buy two units, was there a discount for buying two units? Most developers profile the buyer and typically profiles two buyers and not just one for two units. If the buyer of your assignment has the ability to sell one unit the next day, then I would appraise two condominiums and not a two-family. I would also discount the second appraisal report if each unit were identical. I would charge slightly more than a two family report for the two condominium reports.

 

[Midwest Guy]

Thank You everybody!

Sometimes just need to bounce something off our peers!

 

[PropertyEconomics]

Each single family condo unit appraised one at a time is residential appraising.

The entire condo project appraised as a whole is commercial appraising.

The sum of the two residential appraisal opinions should never be assumed to be equal to the commercial appraisal opinion.

Appraisal of two condo units is NOT commercial appraising in my opinion .... but its just my opinion.

 

[Couch Potato]

Analyze HBU

Appraisal of two condo units is NOT commercial appraising in my opinion .... but its just my opinion.

Nice to get to agree with you for once. With a condo, the land is not divided. Up to a four unit condo complex would still be a 1-4 unit residential property.

Jim, you need to investigate the condo documents a bit to have all the details (as well as know your state laws on condo's) but likely the market would view it as a duplex and the HBU is a duplex if that is how it is being sold by the developer.

 

[PropertyEconomics]

Nice to get to agree with you for once. With a condo, the land is not divided. Up to a four unit condo complex would still be a 1-4 unit residential property.

Jim, you need to investigate the condo documents a bit to have all the details (as well as know your state laws on condo's) but likely the market would view it as a duplex and the HBU is a duplex if that is how it is being sold by the developer.

Will Wonders Never Cease .....