2 houses on ONE deed

[Beth Ryder]

If 2 adjacent properties are deeded as one..would that have any impact on my appraisal? I have (2) two-family properties that previously were recorded on one deed and are selling again on 1 deed. The lender believes I should be able to appraise this on one appraisal because they are deeded as 1 property. So instead of two separate addresses, they are noted as 120-122 Murray St. Both have separate lots and separate tax map #'s.
It would be next to impossible to find comps with 2 homes on 1 deed. Am I right in appraising these separately even though they are deeded together?

 

[CANative]

Unless there is some unusual deed restriction, the deed could just be changed so that they can sell separately. Appraise the real property, not the deed. Two appraisal reports for most intended uses.

Score again. Two appraisal fees, one report with a cloned second report.

 

[Marcia Langley]

Along those same lines, (I agree with Greg) does it make any difference if the two lots are currently encumbered by the owner under one loan? I understand that we are not appraising the existing loan, but if so encumbered, they can not be sold seperately (unless simultaneously as is the present case) without the current owner paying off the existing mortgage.

My question is really this: If, because of the existing encumberment, the properties can not be sold one at a time, could you still appraise them one at a time?

 

[Mike Boyd]

2 houses

On your REAL question.....yes, they can be appraised separately. It is THEIR problem to separate them. However, if your client...the lender....wants them both on a single appraisal then one of them would have to be considered as contributory value, or, do the report on a 2-4 form and compare it to a duplex or a SFR with a rented 2nd detached home. Charge accordingly.

 

[CANative]

Client "needs" have no bearing on actual highest and best use. Appraising these properties as a house with an accessory unit or as a duplex may be problematical.

 

[Couch Potato]

I see nothing wrong with a single report for the appraisal of two separate properties, but using a FNMA form for the report would be inherently misleading IMHO. I would give the client a choice of one narrative report or two FNMA forms. The fact that they are on one deed is irrelevant. You could have a single deed for properties in different states or countries for that matter. The deed could even include the transfer of some personal property. A deed is simply a legal document that verifies transfer of ownership. I has no effect on the thing being transfered, but it does specifically identify what was transfered, by whom, to whom and when.

 

[Walter Kirk]

If there are two seperate parcel numbers there are two properties. If they were conveyed on one deed it was don for convenience only. Although you can appraise both parcels on one report I wouldn't. Yoy may have a problem with H&BU as well as present a misleading report. Do two reports.

 

[Baldwin]

Beth, Hi it's Bob Baldwin. I've had this situation before in the PA market. The lender wants 1 appraisal because of 1 fee. I would recommend that the properties be put on their own deed or do 2 seperate reports and explain that there are 2 homes with 2 map #'s on 1 deed and do 2 appraisals. This is a tough one but you just need to explain it in the report..Tell the lender the situation. Hope things work out and hope your doing well.

Bob

 

[Webbed Feet]

To All,

This topic just keeps raising it's ugly head over and over, but only with slightly different circumstances... Normally, it's with two adjacent vacant lots or one improved lot with an adjacent vacant lot... So many people, appraisers included, can't seem to wrap their brains around the fact that simply placing two separate pieces of land on one deed does not combine two legally separate lots into one just because the same person owns them. .. Place the two pieces a mile away from each other and suddenly everyone gets it... Place them adjacent and they can't figure it out.

Barry Dayton

 

[Beth Ryder]

Hi Bob Baldwin...It's good to finally see a local on this site! Your post was exactly what I told the lender. 2 separate properties...2 separate appraisal reports. I knew the answer..just checking with the experts nationally!
Thanks!
Beth