Duplex Appraisal

[donjun]

In general, would a duplex or a house be appraised higher? Considering that square footage, location, style of building, etc. are the same. The neighborhood is mostly single family.

At this time I have a choice. The property is being used as single family, but it looks like a duplex. It would be very easy to close up a couple doors. and make it a true singly family dwelling.

 

[Walter Kirk]

You must do a highest and best use analysis, there is no hard and fast rule. I have seen older SFR's that were converted to duplex sell for less than similar style SFR's in the same market area.

 

[realbiz]

You must do a highest and best use analysis, there is no hard and fast rule.

Very good answer. But, if you want a random opinion. In most cases I have seen in Southern California the SFR is worth more than a duplex in the same neighborhood. They are viewed different, the typical homeowner wants a SFR. Most do not want rental property, unless it will be used by family members. Also, you can not just closed up doors and call it a duplex. The zoning would have to allow, and city should approve its use as a duplex. I suggest you pay a local appraiser to given you the correct answer, it may be well worth the money spent.

 

[PropertyEconomics]

In general, would a duplex or a house be appraised higher? Considering that square footage, location, style of building, etc. are the same. The neighborhood is mostly single family.

At this time I have a choice. The property is being used as single family, but it looks like a duplex. It would be very easy to close up a couple doors. and make it a true singly family dwelling.

What are your investment goals?

 

[Lobo Fan]

You might want to start by looking at the zoning. Is the second unit legal? Often an SFR with an accessory unit will appraise for more than a duplex. There are a lot of variables to your question. Also is the square footage typical for the neighborhood? Will absorbing the second unit make iit much larger than everything else? There is a law of diminishing returns.

 

[toddmallard]

What is the zoning?