Attached PUD. Can I use Detached PUD or SFR as a COMP

[Aaron Mikulewicz]

I have a attached PUD, and would like to know if I can use a detached PUD or SFR as a comparable? This is in AZ, maricopa county.

Thanks

 

[wjcole]

A good appraiser probably would not

 

[Bill_FL]

You need to answer that question by examining the data. No appraiser here can answer it for you. The question becomes one of market reactions to attached vs detached. Can you use a condo? Depends doesn't it. Does the typical buyer react differently between condo's and pud? differently for detached?

That is your job as an appraiser. Get the data and go figure it out.

 

[Randolph Kinney]

I have a attached PUD, and would like to know if I can use a detached PUD or SFR as a comparable? This is in AZ, maricopa county.

Thanks

Aaron, welcome to the forum.

How many units are in your attached PUD? How many listings, pendings, and sales within the last 12 months?

If you don't have enough data in this PUD, you will have to develop / extract market reaction to something that is not in your PUD for comparison. For example, comparing units that are similar in size and functional utility in a detached PUD over time with your attached PUD units, you should be able to extract the market reaction as a percentage difference and make adjustment if you use them.

 

[Tony Blackburn]

There is nothing in USPAP that says you can't do that specifically, but you have to answer the question of what data do you have and what is the reliability and relevance of that data. I assume that since you are asking this question, you are in desparate straits for ANY comparables.

If that is the case, look for similarity in design and appeal, to the greatest extent possible. Look at sales in your own development up to two years old or like Randolph said, listings pendings, etc. Examine if there are any expired or withdrawns in your development over the past year. Those can be a great indicator of the ballpark of where you might be, value wise. When you exhaust all those otions, then look outside your development to competing developments. Even ones that may be somewhat distant. Don't forget to address differences in location. Compare any sale over any time period from your development to a sale at the same time period that is detached, and that percentage difference can give you an approx. adjustment amount.

And above all....explain, explain, explain.

 

[George Hatch]

We're assuming you're being forced into using disparate property types as comps because you lack sufficient sales data that are more similar to the subject, not because your client doesn't like the numbers that would result from using the more similar comps.

When appraising orphan properties with insufficient market data of the same type I have sometimes resorted to bracketing my subject with property types that have proved to be less desirable as well as some that are more desirable. So yeah, I've used condo units of comparable construction to bracket the lower end and detached PUDs to bracket the upper end. It also helps to run comparisons using prior sales of the subject's property type to these other property types to see what the market's reaction has been in the past - that lends support to your choice of comps as well as to the adjustments you'd be making for the different property interests or other attributes.

Sometimes all you can do is all you can do.

 

[ttaM kooC]

You should do what the market would do.

If there were no units like your subject available for sale, where would their potential buyers turn? Would they buy similar units in another location, or perhaps a different type of unit (detached vs attached, condo vs PUD, etc.) in the same area?

Talk to agents who have sold units in the subject development and pose that question to them: "If you had a buyer who wanted to by one of the units in this development but none were available, where would you take them as an alternative?"

Maybe we should wear hats, kind of like the WWJD hats: WWTMD?