Corner Case SFR or Duplex Appraisal Question

[George Hatch]

Lol this exactly. My cousin does business appraisals and said something similar lol. The only reason I care is because this is the difference between me putting 5% and 15% down with a conventional loan. If we do a 1025, my lender wont honor my rate lock if i need to go FHA.

So, financing terms. Which that's a valid reason for market participants (and an appraiser) to treat the two differently.

 

[nford]

If I was in your position I would push back. It sounds like an ADU to me.

More info:

What is required for accessory dwelling units (ADUs)?

selling-guide.fanniemae.com

This is perfect! Thanks for the support all, the lender issued a stop and submitted the prior mortgage and county records for review. The property was mislisted as a true duplex but the MLS says SFR. Selling agent didn't know what to list it as.

 

[CGinMN]

Ultimately it is the appraiser's highest and best use that determines which form the appraisal is reported on, so they may stick to their guns.

I would note that the unit is subordinate in size. Also, if only one of the two units can be rented, which is the case in some jurisdictions, that restriction can impact the property's highest and best use.

 

[Tom D]

2-4 family dwellings can many times be frustrating, in that there may be very few, or none, such similar sales to do a 1025 form, 2-4 family. as a single family with adu, i agree it is, the value may come in higher because there are more sales to pick from. with zoning approved you only need 1 adu comp, without zoning approval you need 2 adu comps, as per fannie guidelines. FHA somewhat follows fannie guidelines. you can always have the electric meter removed for that adu, thus no utilities provided. if you want it so badly, put the interior entrance back in, or remove the kitchen.
if you love the house, do you really need that adu for now, at least.