Difference Between 2 SFR On A Lot And Duplex

[ruth li]

What 's the difference between 2 SFR on a lot and duplex?
I ran into this few times now, but puzzled on what to do on this one. Which form to use----URAR or the multi units?

This is in San Bernardino county, California, the county use of the subject is 2 single family residences, and the land use is SFR. In this case, what comps should I use to comp it out. The 2 SFR in a lot is scarce here, should I treat the subject as duplex even thought the land use is for SFR? or should I pull the comps using SFR? Anyone please advice. Thanks.

 

[wyecoyote]

What is the highest and best use? What does zonning state? What does the Land Use & zonning regulations state?

The answer is it depends on your area and what you have. For example in my area some of these are treated as SFR with the largest, best condition, best quality of the two is the "house" the other is a ADU/MIL. However, there are cases where they both are legal and thus would be treated as detached duplex. Not an easy answer. But you should check into the regulations for the answer. Maybe even going to the local building and planning/zoning/governing authority and see what they say.

 

[ruth li]

Ryan,

The zoning is SFR, but the subject has two on a lot legally permitted. It is an 1941 built.

 

[Charles Witt]

In our market a duplex means there is one common wall, i. e. semi-detached. What is your situation?
Sounds to me like you have a single family with an accessory unit....?.....

 

[ruth li]

Charles,

This one is like two detached units. But the zoning is 2 single family instead of duplex. Zoning is SFR. I will call the city and county on Monday to find out more about the zoning.

 

[Gerard Donelan]

If 2 SFR's on a single lot is permissable and also the highest & best use, then the challenge would seem to be finding "comparable 2 SFR's on a single lot" sales.

If one SFR per lot is the highest & best use perhaps you can consider appraising the better of the two SFR's as the subject. You could then ignore or assign minimal value to the second SFR as appropriate.

 

[Ann O'Rourke]

This is a 2 unit residential rental property. Whether or not the units are attached or detached doesn't affect what it is. I have appraised these regularly over the past 20 years. Sometimes buyers will pay extra if the units are detached, sometimes not. Look for any data on detached 2 unit properties. Go back in the past, use listings and expireds, or an agent survey. If you can't get any info, just use what you have - two attached units.

 

[ruth li]

Ann,

What's the trick to search in for comps? Use duplex? How to search two SFR in MLS? Do you have to go thru each listings?

I enjoy reading your news letter every time. See you next year in SF.

 

[Ann O'Rourke]

I search for 2 units on the MLS. In my market now there is a difference between 2 units and 3-4 units. 2 unit properties are being purchased by owner occupants (particularly extended families). 3-4 unit are typically investors.

You are looking for 2 units, attached (duplex) or detached (2 houses). See what your market says. If you have any 2 units with 2 detached homes, call the real estate agents (selling and listing) and ask what they think about the difference between duplexes and 2 homes on the same lot.

Yes, I look at all the 2 unit listings, pendings, and sales. Go far back in time if you have to, say over the past 2 years. Some MLSs allow for searching for key words. If you can't find any data on 2 detached homes on one lot, there are always the duplex (attached units) data to look at. I usually use duplex (attached) sales and whatever sales of 2 homes on one lot that I can find. There are a few each year in my city.

What are the buyers looking for? There is a big difference in the market between a house on a lot and 2 houses on one lot. There may or may not be a difference between attached and detached units in your market.

Think of it as a 2 unit property, not a duplex.

Sometimes the local agents here get confused and price them as if they were 2 separate homes on separate lots and add the prices together. Of course, they don't sell.

See you next August at the Appraisal Today conference!!

 

[Patrick McCurry]

I work in San Bernardino County. What your seeing is very typical for San Bernardino County. I have used a legally permitted 2 on a lot as having similar utility as a duplex. Attached/detached has never presented as relevant. I use a multi-family 1025 for both types of properties. The key is legally permitted. I will not use an SFR with any type of guest house, granny unit or the like that is not on public record as comps. for this report type. When I search using FARES(realquest). I build a custom search and specify land use as SFR and res/units as 2. This will give me the legal 2 SFR on a lot properties. I also run Duplex. Be careful and make sure you have the local MLS because San Bernardino County is a very big county and in my experience the public record for legal 2 on alot improvement is typically wrong on the property charachteristics. Also, I ask the Lender or LO for a prelim title to veryify legal land use. This helps in addressing the subject in the appraisal because the prelim title addressing for the subject is almost always different than the known address of the subject. The lender will want the report to match the title. This saves a "condition" to change the address and also confirms the legal use of the improvements.