1/2 Duplex Vs. Townhouse

[444nutman]

I have a 1/2 duplex in an area without any recent half duplex sales. Their is one, over a year ago. The only thing I have working in my favor is the one next door has been listed for the last 4 months. So I have an idea what is not worth. I have found some single story townhomes similar in age, condition, community features, 1 car garage, lot size and GLA which would be good comparables. I could go out further for 1/2 duplexes but don't want to make a location adjustment. Has anyone used a townhome compared to a 1/2 duplex? BTW the 3 townhomes I found were end units as well. I think I know how to handel it but looking for some conformation.

 

[Joyce Potts]

I have a 1/2 duplex in an area without any recent half duplex sales. Their is one, over a year ago. The only thing I have working in my favor is the one next door has been listed for the last 4 months. So I have an idea what is not worth. I have found some single story townhomes similar in age, condition, community features, 1 car garage, lot size and GLA which would be good comparables. I could go out further for 1/2 duplexes but don't want to make a location adjustment. Has anyone used a townhome compared to a 1/2 duplex? BTW the 3 townhomes I found were end units as well. I think I know how to handel it but looking for some conformation.

If they're both attached, I wouldn't get hung up on the one story vs. two story architectural styles, floorplans, design/appeal or whatever you want to call it. Put yourself in the shoes of a typical, knowledgeable buyer. Are the two products SIMILARLY perceived?

I would also put the listing in CLEARLY STATING IT'S A LISTING and provided to set the 'high end' of the value range. I would also use it to reiterate the days on market, listing price history, etc.

And kudos on realizing that the next door listing may not be closed sale that indicates what your subject property is worth, but it most certainly indicates what it's probably not worth.

In situations like this where good comps are scarce, I'd use both the listing as a 4th comp, at least two sales of the 'similar' townhomes that don't require a location adjustment and then use one of the other attached duplexes, even if it requires a location or some other adjustment.

Given the details, I'd say you're on the right track.

 

[PropertyEconomics]

I have a 1/2 duplex in an area without any recent half duplex sales. Their is one, over a year ago. The only thing I have working in my favor is the one next door has been listed for the last 4 months. So I have an idea what is not worth. I have found some single story townhomes similar in age, condition, community features, 1 car garage, lot size and GLA which would be good comparables. I could go out further for 1/2 duplexes but don't want to make a location adjustment. Has anyone used a townhome compared to a 1/2 duplex? BTW the 3 townhomes I found were end units as well. I think I know how to handel it but looking for some conformation.

Serious Question ... what is 1/2 a Duplex? That appears to maybe be a regional term and I dont know what it is.

 

[444nutman]

Thanks Joyce that was the route I was going to take just wanted to hear someone else say it.
PE: A 1/2 duplex is considered an attached SFR. Each half of the duplex has its own parcel # and own the land underneath. Each unit is owned seperately. The local college UCF they are doing that with Quadplexes. They buy the quadplex and split it 4 ways. They are worth more individually than as a quadplex. Not always the case but it is over by UCF.

 

[PropertyEconomics]

Thanks Joyce that was the route I was going to take just wanted to hear someone else say it.
PE: A 1/2 duplex is considered an attached SFR. Each half of the duplex has its own parcel # and own the land underneath. Each unit is owned seperately. The local college UCF they are doing that with Quadplexes. They buy the quadplex and split it 4 ways. They are worth more individually than as a quadplex. Not always the case but it is over by UCF.

Here we call those patio homes or townhouses ... duplexes here are rentals .. nearly always .... I was just curious.
Its intersting to learn regional differences. Thanks for answering.

 

[Wendy]

I concur with Joyce.

You have to use what is available, and if that is a townhouse, so be it. I'd just be extra careful to fully explain why you used them.

 

[Lee Lansford]

The market dictates what is a substitute property for your Subject property.

If the townhouses are the logical choice of the market as a substitute for your Subject, then your choice is obvious.

 

[Webbed Feet]

Serious Question ... what is 1/2 a Duplex? That appears to maybe be a regional term and I dont know what it is.

P.E.

YOU don't know? Well by golly it's the same as a 1/4 Fourplex or 1/100 of a 100 unit apartment complex!

It's also the same as in commercial when asked to provide the market value of the real estate of only one little store in a strip mall. You know..... 1/12 Strip Mall?

What's the matter with you? All the rest of us know this.



Webbed.

 

[Charles Knutson]

You're on the right track -- but rather than excluding comps for one reason or another, include them all. Use the dated and distant and active listing 1/2 duplexes as comps 4, 5, & 6, and use the most recent most similar townhomes as comps 1-3.

One thing to be aware of -- some townhomes are condo ownership, and some are attached SFR ownership. (Check the legal descriptions -- are they lot and block, or unit and building?) The market doesn't seem to penalize condo ownership townhomes, but the lending industry does. Also, duplex and triplex townhomes often have a party wall agreement and no HOA fees, which can enhance their market appeal.

If possible, try to use small project townhomes instead of comps from large townhome complexes. The market appeal of a 1/2 duplex is similar to the appeal of a 1/3 triplex or 1/4 fourplex, instead of the mega development townhome. I normally adjust unit location (end unit vs interior unit) at $2k -- sometimes more, sometimes less.

Unless there is an obvious value difference between the communities for your subject and a distant comp, a location adjustment is not necessary. If there is a significant difference in market appeal of the locations, it probably isn't really a comp.

 

[Don Clark]

I have a 1/2 duplex in an area without any recent half duplex sales. Their is one, over a year ago. The only thing I have working in my favor is the one next door has been listed for the last 4 months. So I have an idea what is not worth. I have found some single story townhomes similar in age, condition, community features, 1 car garage, lot size and GLA which would be good comparables. I could go out further for 1/2 duplexes but don't want to make a location adjustment. Has anyone used a townhome compared to a 1/2 duplex? BTW the 3 townhomes I found were end units as well. I think I know how to handel it but looking for some conformation.

I have several areas where a dupex has each side seperately owned. If there are not any sales of similar properties I have used townhouses as that is the type property to the subject property. No one has ever questioned that. We also have a lot of "Twin" homes. Same thing. Since most of our twin homes are most similar to single family detached homes except for the fact they are attached to the house next door, I use single family detached homes with any adjustment indicated by the market. We also have semi attached, which is the same thing as a semi detached. They are usually attached only at a small part of the roof line, or in the middle, or even at a garage roof line. Best advice I can give is compare apples to apples. Some are attached by a limb, some are not. They are still apples.