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Can I use condo comps for a PUD?

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laurielutton

Sophomore Member
Joined
Apr 8, 2008
Professional Status
Licensed Appraiser
State
California
Hello all and Happy Friday!
This is my first post so I sure hope this works. I am working on an appraisal for a property that indicates on the tax record that it is a condo ( looks like a condo located in a condo development ). However, the apn # ends in 00 and it has lot and tract for the legal discription. There is an HOA. I have put this report on the SFR form with the PUD box checked. There is only 1 closed sale in the past 3 months inside this development that I can use as a comp, the other comps are from the development down the street. These all show signs ( apn # and legal discription ) as being a condo. Can I still use these as comps for my subject even though my subject appears to be a PUD?

Thanks in advance for any help!
 

Jalexi

Sophomore Member
Joined
Dec 30, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
If they own the land it's a Town House not a Condo. Are you using the 1004 form or 1073?
 

laurielutton

Sophomore Member
Joined
Apr 8, 2008
Professional Status
Licensed Appraiser
State
California
No, its not a condo. Although it resembles a condo, it is located in a PUD, so I have it on a SFR form. What I am asking is if I can use "condo" comps from down the street.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Yes, if the "condo" comps have the same characteristics. I would make a lengthy explanation as to why you had to use them rather than PUD comps from a competing project. I have written in similar situations......."The market in this area does not recognize any value difference between a condominium and a PUD unit."
 
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laurielutton

Sophomore Member
Joined
Apr 8, 2008
Professional Status
Licensed Appraiser
State
California
Thank you Mike. That is the info I was needing. I will move forward with your advice and make great comments.
 

Tom McDowell

Member
Joined
Jan 19, 2003
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
North Carolina
First you need to confirm what your subject is. Condominium (Condo) is a form of home ownership, a Planned Unit Development (PUD) is an overlay zoning district that permits land developments on several parcels and contain both residential dwellings and commercial uses. In NC the Condominium Declaration must be recorded so you can go to the register of deeds office and look them up. The deed for the property would indicate what type of ownership the owners have. If you are relying on the tax card you are wrong.

As far as comparing Condos to Townhouses or SFR's I would say no. If there are no other condos available in the subject condo complex then go to another condo complex and find sales in there. You may need to make a location adjustment but a location adjustment is a lot easier to justify than a WAG or even a SWAG.

In answer to your question yes if they are both the same type of ownership. But there are exceptions to every rule. You as the expert must know your market.
 

Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Ever seen a single family detached home zoned condo? I have. Ever seen an attached townhome zoned condo? I have.

If the end user/buyer perceives the improvements as providing the same 'functional utility' what difference does it make as to the legal zoning? That said, you might want to compare the monthly dues for each and take a close look at that.

I have often used two properties that are nearly identical with one being zoned condo, the other SFR AND CLEARLY EXPLAINED why it was used. Usually, it's mostly because there is an extreme absence of sales, pendings OR LISTINGS within the same PUD or condo project.
 

Tom McDowell

Member
Joined
Jan 19, 2003
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
North Carolina
But don't confuse zoning with ownership. Condominium and Townhome is a type of ownership. The zoning laws zone areas that allow or prohibit these types of ownership. Usually this is a minnimum standard and you can find SFR's both detached and attached in these zoning areas.

The appraiser needs to confirm the type of ownership they are appraising and the tax card is not the the final legal answer.

I would prefer to use the same type of ownership when appraising. But as I said there is an exception to every rule.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Please do not use "zoning" or assessor data to determine if a property is a condominium or a PUD unit.........in California. Apparently, per this forum, some other states have a different definition of what a condo is. You have done the right thing in examining the legal description to make this determination.

Oops. Tom beat me to this warning.
 

Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Sorry, in Florida - it's usually zoning and often makes the distinction between a condo and SFR. And we are generally appraising the fee simple bundle of rights, with some exceptions.
 
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