• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

2 Duplexes on same PID

Status
Not open for further replies.

DeeDee Armstrong

Thread Starter
Sophomore Member
Joined
Jun 24, 2002
Professional Status
General Public
State
Minnesota
Here's the situation:
Rural property in MN.
One parcel of land, 2 Duplexes.
County records show 4 plex as currently being on the land. (The parcel is not currently split, and we are unsure as to whether it can be split... this is being looked into).

Loan officer is ordering one appraisal per duplex, and is saying that the underwriter wants the land value split equally between the 2.

Anyone ever encountered this? Is this even possible to do? Advice?
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Dee Dee,

I don't know about your area. I did this with two duplexs on same lot and parcel number. Completed as a four plex they are abundant here. The one thing in you situation I would look at is do you have a current survey and legal desription for the two parcels? What if they don't split the properties equally? You may be able to do this as a Hypothetical appraisal.

Ryan
 
A

Anonymous

Guest
You can do the appraisal as the client ordered however you cannot just split the land value. Your instructions create a hypothetical condition and you should approach the properties as if a subdivision has taken place. If you only have one well or septic system ignore what I have suggested.
 

DeeDee Armstrong

Thread Starter
Sophomore Member
Joined
Jun 24, 2002
Professional Status
General Public
State
Minnesota
Walt,
There is only one well and septic on the parcel. Now what? Please don't give up!!! :)
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
That is why it is caleld a 1-4 family appraisal not a duplex appraisal or fourplex appraisal. It is one property with 4 family utility. You would compare it to other 4 family properties (of fourplexes).
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Begins to sound to me more and more like a 1025 SRIP ..
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Nothing ever said they all had to be connected.....having two duplexes on one lot is somewhat common here, as well, and the county considers them a four-plex, as they will not permit a lot split. In one case, one of the duplexes sat in front of the other.
 

DeeDee Armstrong

Thread Starter
Sophomore Member
Joined
Jun 24, 2002
Professional Status
General Public
State
Minnesota
Thanks for all the replies. As always, when you smell a skunk, you know it cant be far away. I continued to ask questions until finally being able to speak with the underwriter. Shortly after that conversation, the deal went away. Sometimes that is for the best.

I tried early on to go the route of 1-4 units and compare it by using 4-plexes. However, although the number of units matched, the number of buildings was different. That made it a unique property. The underwriter wanted 2 comps that also had 2 buildings and four units that have sold in the last 6 months. That is when the deal finally went away!

There probably is no good way to appraise this property that any conforming lender is going to accept. (At least in this area where these property types are less common.)

Thanks,
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
it is not a fourplex in my market, it is two duplexes on the same parcel. Old Mikie expression...you cant make chicken soup out of chicken poop!!
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks