Today I saw an end-unit, 2-story TwnHm built in 1981....and the client wants a C.A. There is another 6-unit building to north, and an 8-unit building to the south. I did NOT get to also see the inside of the other 5 units in the subject's TH building. Interior units experience the common-wall with a neighboring unit. Each owner gets to update and improve the INTERIOR of their homes as they wish, even as to have differing window quality from one's immediate neighbor. Flooring materials, fixtures, counter tops and utility units (age and quality) can all differ by nature of any owner's choices and rights to improve. The land area "with" the subject TH is .0227 acres....not very much ! There are no .0227-acre "site" sales in this 25-yr. old neighborhood.
We all know why the client makes such a C.A. request......and so I asked the h/o to provide for me his current hazard insurance policy statement page so that I can refer to its numbers/data as other input within my report.....as I also will direct the client to Fannie's Q&A #12 from Nov. 1st of 2005. (I ask all h/o's now to share their (current !) insurance coverage data just the same as to ask about HOA fees, or age of furnace or roof, etc. Just another piece of data to gather.) Some of the phrase-wording in that ?#12 is useful to repeat in one's report, especially when the client does not reveal the purpose/use for their C.A. request. It appears this insurance policy is collective of the 6 units of their building, with a component of one's monthly HOA $fee being acknowledged by h/o as "being for hazard insurance". I will suggest to the client that they have a pow-wow with the insurance provider AND the h/o to determine if the CURRENT amount of coverage meets all of THEIR needs. No....I am not going to attempt to re-build the 6-unit building......as I do NOT know the interior finish details nor conditions of the other 5 units......and not likely or reasonable to determine a "land value" for just the subject unit !
Basically, the C.A. is NOT applicable to this subject property, while the recent sales of other very similar TwnHms on this street and nearby will be VERY supportive in concluding a current MV for the subject. Sometimes it's reasonable and applicable......and other times not. I will likely express what needs to be expressed, and see if the client can accept adapt knowing that a requested component of "information" they sought lacks any reliability to support the MV opinion which is shared.