Comparing a Triplex to an SFR + ADU + ADU

[Non Sequitur]

OP won't need it this time, but one other strategy I have used in the past when there's no other alternative is to look at recent expired/withdrawns.

And FSBO's.

 

[Fernando]

Or actually drive around the area and see for sale signs.

 

[Fernando]

OP must be young. When I was young, I would go to faraway places (anything over 50 minutes too long for me).
When young, I had a listing in Napa which is almost 100 miles away from my home. In retrospect, I can't believe I did that but I was hungry with money.

Now I wouldn't want to travel too far not just for listing but doing appraisals.
The time lost in driving and possible reviewer conditions and request for additional comps are not worth it unless high fee.
What happens if after effective date, a new listing pops up? Will OP drive back there to take photo or use MLS photo?

 

[ZZGAMAZZ]

You're in the wrong thread. Your MAGA views shouldn't be here.

F, Nah it's cool. We be discussing the 5th H&BI test: Whats best for the community of logical individuals...

 

[Mark K]

F, Nah it's cool. We be discussing the 5th H&BI test: Whats best for the community of logical individuals...

Nando and Grant are the two worst offenders, bringing Trump and/or MAGA into any and all threads. Screw him.

 

[Fernando]

Nando and Grant are the two worst offenders, bringing Trump and/or MAGA into any and all threads. Screw him.

Only in Watercooler in which anything goes.
Outside the watercooler, MAGAtards don't know better. No common sense.

 

[Terrel L. Shields]

This won't fly secondary market so is this a non-conforming conventional loan?

FNMA limits loans on SFRs to ONE ADU, and that ADU must be subordinate in size to the Primary dwelling.

 

[J Grant]

Hi all,

I'm looking for advice as I am currently appraising a triplex for a lender with a severe lack of Active/pending comparables. I am faced with considering utilizing an SFR with 2 ADUs as a comparable and am wondering what considerations I need to address in the potential comparison. Of course the zoning for the SFR is different (R1 vs R4 for the subject). Aside from that the SFR is currently marketed in the MLS under the Small Income search criteria and is emphasized for its income generating potential which of course we know is a primary motivating factor in the purchase of small income properties like the subject.

I don't have an argument why a buyer would not likely consider the purchase of an SFR plus 2 units as similar to a legal triplex, given all other elements (condition, room count, GBA and lot size, rents etc) are similar, espiecially given the lack of active legal triplexes for sale. The SFR plus 2 ADUs is priced within range of closed sale comparable triplexes. I appreciate any thoughts or input

Your thinking is correct - if an SFR plus 2 ADU can be rented and the income and listed rice is similar to the subjec value range and the price of area triplexes, then yes, it is a comp. Esp as a pending the client is usually less fussy. Just explain what you wrote above.

And if need be , add this additional fact: if the appraiser can not find active triplex sales, there is a shortage on the market, so a buyer would be faced with the same thing. Thus, that buyer as of the effective date might seek the next alternative - a SFR with two rentable ADU's

 

[J Grant]

Nando and Grant are the two worst offenders, bringing Trump and/or MAGA into any and all threads. Screw him.

Not true. I avoid bringing Trump into an appraisal topic thread - I only do it in response to a MAGA agenda post bringing him in, which happens frequently. All of us should refrain from political postings in the appraisal topic arena, myself included if I offend.

 

[Tom D]

An investor would probable look in another neighborhood for 2-4. I don't have those issues, so go 5 miles. Multi don't follow the same single family rules. Since they normally represent a very small % of the market, there may not be an abundance of data, or any data. Just state there were no listings in the subject's neighborhood, went further into the subject's marketing area.
2-4 and condo are not my favorite ones to do. I normally would say there were no comparable listings within X miles. Let them come back, but mine have never come back.