Can 2 contiguous parcels deeded together with the same owner be sold separately?

[ZZGAMAZZ]

My assignment is for a private individual seeking market value for a fourplex she might wish to purchase.

The property is improved with four total, identical units located in two buildings with a parking area between the two buildings.

My research reveals that what appears to be a 4-unit residential income property actuall is comprised of two contiguous parcels each with 2 units, on two lots that per title are "deeded together."

Of course the individual wants two values, for a duplex and also a quadrplex, although that conceivably could require 3 assignments...

However, I'm stumped by the basic HBU, based presumably on the question whether either of the two, existing, legal duplexes can be sold individually if deeded with the other?

Thannks.

 

[Terrel L. Shields]

In my opinion, 2 duplexes do not make a quadruplex. If deeded together, then it is 2 duplexes, each straddling 2 lots? Or each duplex is on a separate lot? It's HBU relates to either "as is" or "as if vacant" - I would argue that "as is" it is 2 duplexes on 2 (4?) lots. That's all. It's HBU is "as is." Now as if vacant then it might be the same, or it might be to build just one building of 4 units. Might depend upon zoning. Or what else is around? Say build up and have an 8 plex apartment (if zoning allows) - anyway the difference is HBU from the ideal to the existing gives you a hint of the obsolescences involved, if any. The land if allowing an apartment is generally more expensive to buy than land that is for SFR or duplex

 

[ZZGAMAZZ]

In my opinion, 2 duplexes do not make a quadruplex. If deeded together, then it is 2 duplexes, each straddling 2 lots? Or each duplex is on a separate lot? It's HBU relates to either "as is" or "as if vacant" - I would argue that "as is" it is 2 duplexes on 2 (4?) lots. That's all. It's HBU is "as is." Now as if vacant then it might be the same, or it might be to build just one building of 4 units. Might depend upon zoning. Or what else is around? Say build up and have an 8 plex apartment (if zoning allows) - anyway the difference is HBU from the ideal to the existing gives you a hint of the obsolescences involved, if any. The land if allowing an apartment is generally more expensive to buy than land that is for SFR or duplex

The two buildings are located on two separate, contiguous parcels. Sooooo, HBU isn't affected by the deed? As an aside, based on results of my pending interview with City Planning tomorrow, my review of the interactive city website reveals that the properties are zoned either Commercial Manufacturing, or Administrative Professional--neither that allow residential improvements, even as a conditional use. [Ywp I neglected the HBU analysis as the first stage of the appraisal process, and now I'm trying to salvage the assignment. My client who is a long-term friend is also a seasoned broker who also is property manager of the duplexes, who I "Presumed" was familar with the property, forgetting that the appraiser provides expertise above & beyond the knowledge of virtually any appraiser...]

 

[Terrel L. Shields]

HBU isn't affected by the deed?

No. But zoning does impact the potential value "as if vacant" even if they exist- so are the properties grandfathered? Should find out tomorrow.

 

[ZZGAMAZZ]

No. But zoning does impact the potential value "as if vacant" even if they exist- so are the properties grandfathered? Should find out tomorrow.

I'd kinda like to open a discussion about the difference between "Legal non-conforming" and "Illegal," based upon the original status of an improvements when built, but I got enough challenges to figure out at present....ike an upscale attahed SFR near the Ocean, built in 2024, originally sold in early 2024, and now under contract as a re-sale in a development where virtually all comp info emanates from the Sales Office that can't understand why I'm appraising a property already sold a few months ago.

 

[J Grant]

If half of the parcel can be legally separated, then they can be split from the deed - if the property is encumbered by a single mortgage, teh mortgage would need to be paid off if one half was severed from the whole ( such as one half of the parcel contained a duplex)

 

[Dublin ohio]

My assignment is for a private individual seeking market value for a fourplex she might wish to purchase.

The property is improved with four total, identical units located in two buildings with a parking area between the two buildings.

My research reveals that what appears to be a 4-unit residential income property actuall is comprised of two contiguous parcels each with 2 units, on two lots that per title are "deeded together."

Of course the individual wants two values, for a duplex and also a quadrplex, although that conceivably could require 3 assignments...

However, I'm stumped by the basic HBU, based presumably on the question whether either of the two, existing, legal duplexes can be sold individually if deeded with the other?

Thannks.

So are they 2 separate parcels with their own PID. Or are they 2 "parcels" with the same PID. Just finished one where there were 2 "parcels" on the deed but they had the same PID. So in reality it was only one legal parcel

 

[ZZGAMAZZ]

Two different parcel numbers...

 

[alebrewer]

neither that allow residential improvements, even as a conditional use.

So, then, are we to assume that the properties were grandfathered? IOW - if residential use isn't even allowed as a conditional (or permitted) use, then they would have had to have existed prior to the zoning change, right? So, then, one question is: can they be rebuilt if destroyed (assuming they are, in fact, legally non-conforming). If they can't be rebuilt if destroyed, it's gonna be hard to analyze the improvements as anything but an interim use (until such time as they are abandoned or destroyed). WRT building a case for H&B as improved (and, again, assuming they can be rebuilt if destroyed), generally speaking two individual improved parcels would have more value than one larger parcel - but that's a general statement. You'd have to look at what your market tells you. Are duplexes more in demand than quads? If so - easy answer. If it's tough to tell, then that could be an argument for considering both uses as potential H&B as improved.

 

[ZZGAMAZZ]

Yea, rebuild is always a potential boogaboo although most every jurisdiction I've ever encountered simply define it with the same textbook functionality. [If built with legal permits, it is assumed that the improvements were legally conforming on the construction date, and OK to be rebuilt to the existing configuration, with consideration for current mandatory garages, etc, if damaged or parially destroyed, if rebuilt within zzz months...