Mix Condo With Fee Simple

[Gregory Beck]

I am appraising a townhouse condominium. I have only one inside sale However outside
I have 2 exact matches except for the title the 2 matches are fee simple town houses
not condominiums. These are 2 different type ownership and the fee simple goes on a 1004
and the condo townhouse goes on a 1073 My question is can I mix these properties and put
them all on a 1073? 1 condo 2 fee simple all townhouses

 

[Tom D]

as long as you explain any differences in marketability, or buyer appeal i think you're fine. puds would be a good choice. i would suggest some older sales as support of you value. also, did you go out 5 miles.

 

[Gregory Beck]

as long as you explain any differences in marketability, or buyer appeal i think you're fine. puds would be a good choice. i would suggest some older sales as support of you value. also, did you go out 5 miles.

The last time I went 5 miles for comps I was turned in to DBPR by Solidifi. I stay under a mile now.

 

[hastalavista]

The last time I went 5 miles for comps I was turned in to DBPR by Solidifi. I stay under a mile now.

I agree with Tom D and his advice.
I'd get a new client if I were "forced" to stay within a mile.

I'm doing a townhouse right now (fee simple) in Silicon Valley. This is a smaller infill development (less than 20-units). These types of projects are not "grouped" together in a nice, SFR-suburban neighborhood. It is absurd (and unacceptable) for a client to put an artificial limitation on distance-to-comparables when the market data doesn't fit within their requirement.
It is not absurd or unreasonable for the client to expect an explanation of why their requirement cannot be met (which should trigger an exception).

 

[bnmappraisal]

I am appraising a townhouse condominium. I have only one inside sale However outside
I have 2 exact matches except for the title the 2 matches are fee simple town houses
not condominiums. These are 2 different type ownership and the fee simple goes on a 1004
and the condo townhouse goes on a 1073 My question is can I mix these properties and put
them all on a 1073? 1 condo 2 fee simple all townhouses

Short answer, YES, you can mix the properties on the 1073. As the others stated, you will have some explaining to do in the addendum (no boilerplate here!) But if a FS Townhouse is comparable in your market to your Condo TH, then you can use it. Expanding your search should be fine too, again, as long as you explain. Most clients (including AMC's) are fine with that as long as you explain your search criteria and the reason for expanding "outside 1 mile."

Maybe when you search outside the 1 mile, you'll find 2 other comp Condo TH?

 

[Gregory Beck]

True story I had a villa/condominium it was totally renovated I had one inside sale. I then went over 3 miles to find
2 more villa/condominiums that were renovated. my final opinion of value $175,000 which was the sale price.
Because 3 of my for comps were over a mile it went to review With Solidifi and Flagstar. The review came back
the reviewer stayed within 1 mile did not use the one inside sale. Did not use renovated sales used a fee simple, not condo townhouse, a garden condo that was an REO sale and another mid rise condo that was not updated the reviewer said I came in $50,000 over value.
Flagstar promptly black balled me. Solidifi turned me into my state DBPR. I then had to hire a lawyer $2,000. Sloidifi also black balled me I was getting $3,000 a month from them before this incident. PS I also filed a complaint with DBPR on Solidifi.. End of Story Both of us were deemed to be innocent. This took 6 months. And I still am out $2,000 for the lawyer and $3,000 monthly income.
NOW ASK ME AGAIN WHY I WON'T GO OVER A MILE. Now I'm considered a cherry picker Ha! And finally both Flagstar and Solidifi can rot in hell for all I care.

 

[hastalavista]

True story I had a villa/condominium it was totally renovated I had one inside sale. I then went over 3 miles to find
2 more villa/condominiums that were renovated. my final opinion of value $175,000 which was the sale price.
Because 3 of my for comps were over a mile it went to review With Solidifi and Flagstar. The review came back
the reviewer stayed within 1 mile did not use the one inside sale. Did not use renovated sales used a fee simple, not condo townhouse, a garden condo that was an REO sale and another mid rise condo that was not updated the reviewer said I came in $50,000 over value.
Flagstar promptly black balled me. Solidifi turned me into my state DBPR. I then had to hire a lawyer $2,000. Sloidifi also black balled me I was getting $3,000 a month from them before this incident. PS I also filed a complaint with DBPR on Solidifi.. End of Story Both of us were deemed to be innocent. This took 6 months. And I still am out $2,000 for the lawyer and $3,000 monthly income.
NOW ASK ME AGAIN WHY I WON'T GO OVER A MILE. Now I'm considered a cherry picker Ha! And finally both Flagstar and Solidifi can rot in hell for all I care.

(my bold)

So an idiot reviewer, an idiot client and their idiot agent have convinced you to that you need to follow their idiot rules going forward?
That is a shame.

 

[Gregory Beck]

(my bold)

So an idiot reviewer, an idiot client and their idiot agent have convinced you to that you need to follow their idiot rules going forward?
That is a shame.

Whats that saying he who has the gold rules. Once burnt badly twice shy You know how how it is if you don't follow there rules you lose the work. I turn down work now.

 

[hastalavista]

Whats that saying he who has the gold rules. Once burnt badly twice shy You know how how it is if you don't follow there rules you lose the work. I turn down work now.

Here's my saying:
If I cannot do it the right way, I won't do it.

 

[hastalavista]

Gregory:

Here is my point and you can take it for whatever worth you think it may be:
In your situation, you completed an appraisal using the appropriate process and had an unwarranted complaint filed against you. I can say with certainty that you did it appropriately because your state board told you so.
I understand the cost + lost business + the anxiety that a complaint can cause (IMO, the anxiety is the worst of it). I get that.
But now, because of that, you have allowed that incident to modify the way you might complete the appraisal process. Not in all cases (I presume) but in some. That (IMO) is allowing a business concern to trump an appraisal-practices process. That is never a good thing to do and it increases the risk of a complaint (with merit) being filed, it does not eliminate the risk of unwarranted complaints being filed.

In the specific (current) case you've posted, I think a non-condo townhouse can be used as a comparable for a condo townhouse if the market reacts to it in the same manner. I have no problem with that and I do it myself. But what I don't do is keep the search to a mile and use whatever I happen to find within that 1-mile radius to value the property. What I do (and recommend) is to find the best comparables and use them. In your current situation, if there is something better that is located outside of a mile, I'd use it. You can use the inside-a-mile non-condo townhouses as well if you think it is necessary to have the magic 3-comps within a mile. But what I wouldn't recommend to you or anyone is to exclude what may be better comparables just because they are outside of an artificial one-mile boundary.