Duplex, ADU, or Just an SFR for Comps

[Terrel L. Shields]

Looked at a "multi-family" property. A building that is divided into 2 units, but it has a door (boarded up) that would allow the two to be one. The one side is 2 bed, 2 bath and the other 3 bed, 2 bath. The occupants are a brother in the smaller unit, and a sister and her daughter in the larger unit. The larger unit has no CHA, but the smaller one does. They are 10 miles out of town on 5 acres. So it is "one" family; two units; and, the units are dissimilar in size and features. So what would you want to use for comps? A 2,400 1½ story house?, a duplex? or a house with an attached ADU. The duplexes are all in town. Any ADU would be spread across the whole county, and the closest homes would be SFR...

Which would make the best comps? 1 of each?

 

[alebrewer]

I feel like this is a test question...

H&BU is most likely NOT 2 family due to location and (possibly) site size. Therefore I probably wouldn't use duplex sales as comparables. You could appraise it as SF with MIL quarters (not technically an ADU since you can access the 2nd unit from the interior). Extract any contributory value for the 2nd kitchen and (as they say on the cooking shows), viola!

 

[J Grant]

Looked at a "multi-family" property. A building that is divided into 2 units, but it has a door (boarded up) that would allow the two to be one. The one side is 2 bed, 2 bath and the other 3 bed, 2 bath. The occupants are a brother in the smaller unit, and a sister and her daughter in the larger unit. The larger unit has no CHA, but the smaller one does. They are 10 miles out of town on 5 acres. So it is "one" family; two units; and, the units are dissimilar in size and features. So what would you want to use for comps? A 2,400 1½ story house?, a duplex? or a house with an attached ADU. The duplexes are all in town. Any ADU would be spread across the whole county, and the closest homes would be SFR...

Which would make the best comps? 1 of each?

Is it a "building", or a house? If it is a regular house, that they split into two units by putting up drywall and two entrances, how much would it cost to retrofit it back to a one dwelling? ( what is CHA?)
You have to evaluate the zoning, and overall character of the dwelling. 5 acres a lot of the value might be in the land ? It does not sound like a duplex - it is either a one family with obsolescence from having been portioned into two areas, or it is a SFR with an ADU created out of it. The workmanship, character of the dwelling and HBU has to decide. I would use SFR and ADU comps within the market area on simlar large lots.

Normally, it does not cost a great amount to partion into two units, nor to remove it, so a buyer for a dwelling on 5 acres in area might consider both.

 

[Terrel L. Shields]

since you can access the 2nd unit from the interior

Actually the door is closed off with a rather ugly nailed on piece of painted plywood

Is it a "building", or a house?

This house is consistent in design and construction to have originally been built for 2 separate living areas. Although the interiors are much the same materials, interestingly, the front is solid brick for one side with brick wainscot while the smaller unit is entirely vinyl clad. Below is a rear view. The property suffered heat damage to the south side due to a nearby storage building fire so that picture isn't very pretty and doesn't show the brick so much.

I agree, I think an ADU is more than duplex. It is a house and was deliberately built in 2 units for a family. First as a mother and a daughter, then a brother moved into the place where mom was. If I understood, she had moved to an adjacent parcel. There are some 4 parcels owned by the son - recently deeded from the mother- but she still lives in a separate house on an adjacent parcel if I understood the daughter correctly. The assessor saying it is a 1998 model. It's had pretty hard use. They enclosed what was a porch in the rear and made into a laundry room - apparently it (the larger unit) didn't have one before, and the other unit has a washer/dryer in the bathroom. Both units have 2 baths, with the smaller having 2 beds, and the larger unit has 3 and a fireplace (with an ugly tall metal 3 lined flue...

The picture of the rear below and I've had trouble getting attachments to show in writing - so it is double posted and I cannot remove it because I cannot see it.

 

[Mark K]

Which would make the best comps? 1 of each?

I lean more in this direction, one or more of SFR and duplexes. Who's the most likely buyer and for what purpose? Duplex, SFR w/ADU, or large family that would remove the door and use the entire dwelling?

Strange property? I put in multiple and various comps and usually a reasonable number is rendered at the end after you correlate towards the value that's the most likely use.