Det SFR is condo

[Michigan CG]

How will you measure the difference--if any--between the subject's condo status and improved properties where the land is owned?

Around here the people own the land of their site condo. Sometimes there is absolutely no commonly owned land. YMMV.

 

[Kristina Ledesma]

I once again have run into a lender wanting a conventional site condo to be changed from 1004 to 1073...where was that nifty verbiage from FNMA/FHLMC that addressed this?? I have scoured the internet and not found it...

 

[sputnam]

It's attached or it isn't. That's pretty easy to determine. It's a condo or it isn't. That's pretty easy too. Look at the deed.

 

[J Grant]

The form is not the critical element, it is the comps and value development (which is true all the time anyway). I believe that site condos can be on a 1004 form, but if it were my report I'd tend to do it on a1073 form...just more clear as there is a line for HOA fees etc.

As far as if there is a discount for SFR homes vs the subject...(first of all, does subject own land or not, needs to be determined). This is a case where calling area RE agents can help. Survey and ask them. I have done a few of these years ago...and found that some buyers don't care and would buy either, other buyers do care and want a SFR for the simplicity of ownership and lack of regs. So imo, the prices might be similar but marketability different....the marketing time for subject might be 6 months, single family 2 months, for example.

Are there any listings in subject subdivision? Any expired or cancelled listings? If so, look at the agent names..if the same name crops up multiple times that agent may live in the complex or specialize in it and is worth a call.

Are there old sales in subject subdivision you can compare to sales of SFR back in time to see if there was a discount, can apply same % today, or if marketing times differed.

Imo, the best SFR comps would be those in communities with HOA fees/Puds, but that is not always possible either. Use the best comps and best info you can, will take additional research for sure.

 

[Kristina Ledesma]

Perhaps I strayed from the thread, I shall start a new one...

 

[Tim The Enchanter]

Detached condos can be a real PITA.
I've compared them to detached PUD homes when I had to.
They both have their own lot, are detached and have an HOA.

Almost the same. Kind of comparing Apple juice drink to Snapple.

 

[Kristina Ledesma]

My particular case isn't a detached condo, but a site condo (they own the plot of land and the house and are responsible for all maintenance) which is viewed as equal to platted SFR.

I have NEVER seen one on a 1073 for a conventional loan....I know there is verbiage out there to support that it belongs on a 1004 I just can't find it.

 

[Lee Lansford]

The project surely has a sales history that can be used to identify adjustments (if any) between these condos and other condos of attached design/construction or freestanding SFRs on their own lots.
...

Yep.

I think that some appraisers do not want to make the effort (or, don't know how) to do the necessary research and analysis to do as you rightfully suggest.

 

[VolcanoLvr]

Take a look at the other separate post about doing 'site condo' on a 1073 Form, vs a 1004 Form.