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

[KHS445]

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.

If you were to use a narrative report, this assignment could be handled as one report. First you would describe the property in its entirety as it presently exists and provide a value. Then you could break out each parcel and provide separate values. By doing it this way you end up only presenting the basics regarding zoning, HBU, neighborhood/marketing area, flood, environmental, assessment, pictures, expansion potential, etc. information one time rather than two or three.

Doing it like this would also provide your client with an idea of what the whole parcel is worth and what each of the individual parcels are worth, which may impact their decision process. Unless the two parcels and the related improvements are absolute model matches, it is very possible that each parcel will have a different stand-alone value.

When developing your HBU would it be possible to construct additional units on either of the parcels if separated and/or on the parcel as a whole. Could a third duplex or larger building be built along the end of the parking area, creating a "U" shaped situation?

 

[Zoe]

Most likely setbacks would not be a problem as the poster has stated there is a parking lot between the two buildings. Additionally, probably the only area that would be affected by setbacks in the event of a split, would be the area between the two parcels that is currently under common ownership. In that case the owner could agree to any infringement on the required setback and it should be a non-issue. At least that is the way it operates in most areas, but who know what kind of regulations are in California.

You can't have any improvements that are located with any improvements on setbacks. Many lawsuits are created from such between property owners.

Zoning and surveys identify encroachments.

I won't even touch a possible easement somewhere between.

I don't want in that fight for my client.

I set SOW.

 

[J Grant]

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.

i see why you suggest three assignments ( 3 appraisals) , one for each duplex and one for the fourplex. Make sense.

 

[Zoe]

i see why you suggest three assignments ( 3 appraisals) , one for each duplex and one for the fourplex. Make sense.

Remember who your client is. The owner is the client in this case. I have no idea what value definition the appraiser is basing appraisal on.

Don't be obtuse girl.

 

[Zoe]

 

[KHS445]

You can't have any improvements that are located with any improvements on setbacks. Many lawsuits are created from such between property owners.

Zoning and surveys identify encroachments.

I won't even touch a possible easement somewhere between.

I don't want in that fight for my client.

I set SOW.

WTF are you even talking about!

The two parcels of property being discussed are under common ownership and control, so if a setback issue were to arise between the two parcels, the current owner of both parcels (same person) could agree to accept any possible setback issues and in most cases zoning and planning would permit the agreed upon setback encroachment. Plus, it would only be a setback issue if the parcels were split and sold to different buyers. Even then if the setback encroachment was of record, it wouldn't make any difference. Also remember a property line adjustment to correct a possible setback encroachment issue does not need to run in a straight line the entire length or width of the property.

Zoning does not identify encroachments. It only stipulates what the required setbacks, uses, etc. that are in place for a particular zoning classification. When it comes to easements that may encroach a portion of the property, that is what your records search should uncover. If something is uncovered, that is when you dig further and review the recorded documents as to the location and purpose of the easement.

A tip as to whether there is a potential easement running between the properties would be if the plat plan shows a platted, but unimproved street, if obvious power or utility lines are observed, or if the property directly behind the subject appears to show evidence of an easement running across it which aligns with the suspected easement on the subject property.

I am glad you set the scope of work, but your scope of work is useless if it doesn't meet your client's needs.

All I said was to consider what are the other possibilities when it comes to this property. If for instance, additional building or multiple buildings that extend across both parcels can be added, financially it might make more sense for the property owner to add the additional structures and sell the property in a couple of years once things have stabilized. Are the rents at market or is there room to increase rents or reallocate expenses to increase the bottom line?

 

[Mark K]

HBU? What do the comps tell you?

In this area a 4-unit will sell for $125 ish/unit. A duplex maybe $140K/unit. In this case, the HBU is to sell them individually, assuming the only cost is the paperwork involved to separate them and they'll be conforming after the split. Selling both parcels together is more of a 'value in use' than MV.
'

 

[J Grant]

Aside from HBU analysis, the client asked for two value opinions- a value opinion for the duplex a valuation for the fourplex.

The client can then compare the results and make a decision to keep or sell one of them, all of them, , split them up to sell or keep as one fourplex property to sell. Assumign the lot and property can be split of course.

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.

I go back to my original thought, assuming the property can be split, it needs two value opinions ( not three )

 

[Zoe]

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.

Look at what you posted. Tell me encroachments may not exist or zoning violations. Tell me.

What is value definition in your appraisal?

You already bit H&B use which indicates you are doing MV appraisal. What is your source for MV definition?

 

[Zoe]

Most likely setbacks would not be a problem as the poster has stated there is a parking lot between the two buildings. Additionally, probably the only area that would be affected by setbacks in the event of a split, would be the area between the two parcels that is currently under common ownership. In that case the owner could agree to any infringement on the required setback and it should be a non-issue. At least that is the way it operates in most areas, but who know what kind of regulations are in California.

Don't get your panties in a wad. Do your job. Who is responsible for SOW?

You