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Duplex As A Single Family
- Thread starter Adam Bell
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Randy Beigh
Senior Member
- Joined
- Jan 16, 2002
Adam
Maybe, you should read some of the other threads.
What is the highest and best use? What is the current use? Is it going to be converted to SFR?
The idea of appraising a duplex without understanding the above questions could land you in front of your state board for producing a false and misleading appraisal report. In other words, I don't care what the customer, what is the situation in real life?
Maybe, you should read some of the other threads.
What is the highest and best use? What is the current use? Is it going to be converted to SFR?
The idea of appraising a duplex without understanding the above questions could land you in front of your state board for producing a false and misleading appraisal report. In other words, I don't care what the customer, what is the situation in real life?
Randy,
Thanks for the quick response. The lender does not want me to provide false information as to the type of property it is, they simply want it appraised as one unit.
The subject is a vacant duplex(both sides) being purchased by one family to live in as a single family dwelling. This will obviously kill H&B use. I have run into a dead end trying to find comparable duplexes that have sold as a whole. How would you go about finding/using comps?
Thanks
Adam
Thanks for the quick response. The lender does not want me to provide false information as to the type of property it is, they simply want it appraised as one unit.
The subject is a vacant duplex(both sides) being purchased by one family to live in as a single family dwelling. This will obviously kill H&B use. I have run into a dead end trying to find comparable duplexes that have sold as a whole. How would you go about finding/using comps?
Thanks
Adam
Pamela Crowley (Florida)
Elite Member
- Joined
- Jan 13, 2002
- Professional Status
- Retired Appraiser
- State
- Florida
Adam,
It's relatively obvious you are a newbie appraiser or at least not very experienced.
Under that premise, the first advise I'm going to give you is to be very careful when determining what a loan officer is really telling you and what you believe. What you are told by a LO and the actual facts are too often pretty far apart. In appraising, the so called 'client' is not really the loan officer, it ultimately is the actual company or person that is loaning the real money for that mortgage.
Now regarding your dilema, what is the Highest & Best Use of the subject???
It's relatively obvious you are a newbie appraiser or at least not very experienced.
Under that premise, the first advise I'm going to give you is to be very careful when determining what a loan officer is really telling you and what you believe. What you are told by a LO and the actual facts are too often pretty far apart. In appraising, the so called 'client' is not really the loan officer, it ultimately is the actual company or person that is loaning the real money for that mortgage.
Now regarding your dilema, what is the Highest & Best Use of the subject???
TC
Elite Member
- Joined
- Jan 31, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
It's possible that the lender is trying to get the buyers approved for a single family loan, then once they move in, it will be used as a duplex. Most rental property require a 20% down payment and that makes it tough for a lot of people to qualify. Personally, I think the LO is trying to pull a fast one. But then, I'm just occasionally cynical. B)
Pamela Crowley (Florida)
Elite Member
- Joined
- Jan 13, 2002
- Professional Status
- Retired Appraiser
- State
- Florida
Uh oh! TC & I agree on this one!
Otis Key
Elite Member
- Joined
- May 15, 2004
- Professional Status
- Certified Residential Appraiser
- State
- New Mexico
Adam
YOU, alone, can throw him/her HOW FAR?
Well, looks to me that you've just jumped into a situation where you have a real problem. You might want to pull out the from, URAR and 2-4, and look at the site area. IN there is a box that you mark that the "Highest & best use as improved: X Present Use" or "Other." Now, you've already answered the question I believe so why would you take a chance of getting into trouble by saying that the current use, as a duplex, is the highest & best use as improved and then turn around and appraise it as a single family?
It is what it is!
Understand that your friendly, I wouldn't want you to lie, LO has a vested interest to get a commission, make a loan and keep the interest rate as low as possible. As TC said, duplex requires more down. Also, income properties have higher interest rates.
BTW - you could do it but blows the H & BU and would require an EA which is not appropriate for this.
YOU, alone, can throw him/her HOW FAR?
Well, looks to me that you've just jumped into a situation where you have a real problem. You might want to pull out the from, URAR and 2-4, and look at the site area. IN there is a box that you mark that the "Highest & best use as improved: X Present Use" or "Other." Now, you've already answered the question I believe so why would you take a chance of getting into trouble by saying that the current use, as a duplex, is the highest & best use as improved and then turn around and appraise it as a single family?
It is what it is!
Understand that your friendly, I wouldn't want you to lie, LO has a vested interest to get a commission, make a loan and keep the interest rate as low as possible. As TC said, duplex requires more down. Also, income properties have higher interest rates.
BTW - you could do it but blows the H & BU and would require an EA which is not appropriate for this.
Lee Lansford
Elite Member
- Joined
- Mar 29, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Illinois
Adam, others who have posted before me have given you some pretty good advice.
Neither you nor the loan officer can decide to "kill H&B Use".
I can tell you...if you were to provide what the client is asking you to do...ignoring H&B Use...et cetera...I can just about conclude that the end produce is going to be one monumental misleading appraisal report.
You don't need the grief that you would receive subsequent to completing the assignment as requested. Sure, the loan officer would be your pal...but better to receive grief from the LO than your's state's appraiser regulatory agency.
Find another client.
--Lee Lansford, IFA
AQB Certified USPAP Instructor
Neither you nor the loan officer can decide to "kill H&B Use".
I can tell you...if you were to provide what the client is asking you to do...ignoring H&B Use...et cetera...I can just about conclude that the end produce is going to be one monumental misleading appraisal report.
You don't need the grief that you would receive subsequent to completing the assignment as requested. Sure, the loan officer would be your pal...but better to receive grief from the LO than your's state's appraiser regulatory agency.
Find another client.
--Lee Lansford, IFA
AQB Certified USPAP Instructor
Lee Lansford
Elite Member
- Joined
- Mar 29, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Illinois
"PS" to my immediate prior post: I'm really going to have to start to proof-read what I have written before I hit the "send" button.
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