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FHA 1025

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marshallrosco

Freshman Member
Joined
Nov 2, 2012
Professional Status
Certified Residential Appraiser
State
New York
Completing a FHA 1025. Dwelling is a duplex with an accessory unit in the basement that is rented out.
Can this be included as an apt ? If so, can the square footage be included as it is below grade.
The zoning codes department of the township said it was not permitted or legal so can it be included at all?
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
The zoning codes department of the township said it was not permitted or legal
It is not permitted or legal as a rental unit? If it is not allowed to be w rental then it is a single unit residential property with a basement, correct?
 

marshallrosco

Freshman Member
Joined
Nov 2, 2012
Professional Status
Certified Residential Appraiser
State
New York
It is not permitted or legal as a rental unit? If it is not allowed to be w rental then it is a single unit residential property with a basement, correct?
It is a duplex with 2 units that are legal but the basement accessory unit is not.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Completing a FHA 1025. Dwelling is a duplex with an accessory unit in the basement that is rented out.
Can this be included as an apt ? If so, can the square footage be included as it is below grade.
The zoning codes department of the township said it was not permitted or legal so can it be included at all?

If not allowed per zoning, I would not be including the rent nor this as a rentable unit.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
the basement accessory unit is not.
The basement as a separate illegal living unit is not what I would classify as an accessory unit. nevertheless, since it is an illegal unit should not be counted into the GLA )i.e. below grade and illegal use) nor should the rent be counted in the valuation. However, I'd imagine that the existence of a basement is allowed and and should be counted and addressed in that manner as part of the valuation process.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
The basement as a separate illegal living unit is not what I would classify as an accessory unit. nevertheless, since it is an illegal unit should not be counted into the GLA )i.e. below grade and illegal use) nor should the rent be counted in the valuation. However, I'd imagine that the existence of a basement is allowed and and should be counted and addressed in that manner as part of the valuation process.

Good advice, from everyone. Note what and where it is in the report. I would not give it any value. Since it is outside the use of either unit, it is simply a basement beneath the 2 units and no more than any other basement. i would not give it any value since it is not a legal use. It is simply part of the foundation of the Duplex.
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
You now have a duplex with a finished basement. Not sure how FHA would want the basement handled. But it could result in making subject to possible removal of kitchen so it cannot be rented. Also have the issue of the current tenant in the basement. Purchase or refi?
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Appraisers don't give value. They determine what the market considers contributory value.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Appraisers don't give value. They determine what the market considers contributory value.

You are correct oh learned one.:clapping:

And, just one question.....to what unit does the basement belong.? Do you split it in half and attempt to address that for each of the 2 units? Or, do you simply note it's presence and it's not being a legal use.?
 
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