Condo VS Townhomes

[sputnam]

'Townhome' or 'Townhouse' is also a style of dwelling. It's another one of those terms, like 'PUD' that has multiple meanings that get jumbled. In this area, it's a simple determination. Look at the deed. Attached, single family dwellings have lot numbers, site dimensions, and usually are recorded plat. Condos have unit numbers, recorded condo documents and usually, plans for the unit.

If you are doing work destined for the secondary lending market, it's the ownership that dictates the form you report the appraisal on. Not the style of the dwelling. Does anyone (other than the agent) really care what the agent called the property in the listing?

There may, or may not, be a market reaction for an attached, single family dwelling (townhouse) versus an individual condominium unit...IF EVERYTHING ELSE IS EQUIVALENT. It's a market question. If there's enough data available, current or historic, you can make a pretty good determination about how the market views the two different bundles of property rights and what, if any, adjustment is warranted.

 

[ramrcdk]

Can you report the value pressure from lender to anybody in the bank or AMC rep (if the assignment is from an AMC) It could be a reason to decline assignment.
That said, I have in past reports, where a condo and townhome offered similar amenities and design/appeal, used a TH sale as a 4th sale (or 4th and 5th comp sale) . I included them because I felt it led to credible assigment results, not because anyone pressured me. So if you include them, make sure that you percieve them as good comps and susbsitutes for subject.
You still need 3 closed condo sales...find some older or further away ones with similar sf as subject, maybe 2, and then a smaller one in immediate area to adjust up.
It is not a USPAP violation to mix sale types, but you can't be misleading, so make sure you disclose condo vs townhome and make any adjustments the market indicates between the two.

Hello, Just had the same situation only reversed and I agree with the above. Although 90 day sales were requested...hahaha...I had to use older sale dates of true TH ownership for my assignment: TH, research time-market changes, etc. etc. Also had to use the available "recent" sales of Condo ownership, older condo sales for time adjustments in market, and other typical extractions BUT also to research and extract differences in site value or ownership value with applicable adjustments applied. I was lucky in that the differing market data uses all had the same type and appeal of HOA amenities. Lots and lots of describing...Workfile thick! Good luck!

 

[Lost Cause]

It seems that the issue is more the difference in quality and circumstances between the OP's subject proeprty and the Townhouses that he/she is being asked to use as comparable. The OP has already stated that he/she found a $50,000 or more difference between these properties regardless of the form of ownership. So why can't a couple of these townhosues be included as additional comps with the appropriate adjustments, if for no other reason than to support the original value conclusion? Continuing client issues after that would make it a clear-cut case of unjustifiable pressure for value.

 

[KD247]

...If there's enough data available, current or historic, you can make a pretty good determination about how the market views the two different bundles of property rights and what, if any, adjustment is warranted.

It only takes a couple of simultaneous sales to establish the relationship between the two forms of ownership. If it requires further refining, using distant sales is always an option.

 

[Papoua Jose]

One thing to note is that there are some townhouse style condo complexes with limited common areas directly behind the dwellings that serve the same "backyard" purpose as enjoyed by fee ownership in similar townhouse developments.

These areas have a use assigned to the condo's owner only. (usually a patio, exterior storage closet and a piece of grass for the dog to enjoy)