Duplex or not Duplex

[Dublin ohio]

But do they call them 'duplex', triplex, or 'fourplex' ?

Tomato, Tomahto. It's a generic term to most people

 

[Terrel L. Shields]

It's a generic term to most people

FNMA does not call them "duplexes".

 

[Dublin ohio]

FNMA does not call them "duplexes".

No kidding. Like I said it is used by most a a generic term. But I would hope that an appraiser doing a 2 family detached would not call it a duplex. I know I wouldn't

 

[John Hassler]

Go through your H&BU tests.

Assuming SFR+ADU and 2-unit income are the only two legal uses, which has the higher market value? You may need to analyze it both ways to make your determination.

 

[sputnam]

I am working on an order that has a regular split level home and then a manufactured home on the same property. The homeowner wants me to consider it as a duplex, and do a small residential income report, and not as a 1004 with an ADU. The manufactured home has its own water, elect meter, sewer, and address. It is also on the same property, same deed, and same owner. What would you do in this case? The order came in as a 1004 from the AMC.

It's not a duplex. A duplex is two dwelling units in the same building. Depending on the particulars, it might be an SFR with ADU... or... it might be a 2-family dwelling. One way you will report on the 1004 and the other you will report on the 1025.

The poster who said that it's not up to the property owner/borrrower is 100% correct.... unless they are also the Client. Then they have some input. You need to chat with your Client about how they want to proceed.

 

[Tom4value]

I am working on an order that has a regular split level home and then a manufactured home on the same property. The homeowner wants me to consider it as a duplex, and do a small residential income report, and not as a 1004 with an ADU. The manufactured home has its own water, elect meter, sewer, and address. It is also on the same property, same deed, and same owner. What would you do in this case? The order came in as a 1004 from the AMC.

Nevermind what the homeowner thinks or the form the AMC specified. You, the appraiser, do a highest and best use test. You already have "physically possible". Next check would be "legally permissible". Check with the Building Department. Then, based upon if it can be rented or not, determine economic test.

On a side note, when the homeowner said how you should appraise it, I would have said, "that shirt doesn't go with those pants. Oh, sorry. Thought we were playing, 'giving advice where we don't belong'!".

 

[Mark K]

If, as stated, it is essentially two stand-alone homes on one site, the HBU may be to split the site and sell them as individual SFR, depending on the configuration of the site/homes and zoning.