HBU Multi-family Or SFR

[Tom4value]

The scope of work says appraise “as-is”, I am presuming the effective date being the date of death (not necessarily so check on that). Therefore, you must appraise it as a two family. The opinion of value will be the present use as a two family.
However, in your HBU analysis, you will explain that your value is not for the highest and best use, if you are indeed sure that it is not. That way, you can be sure that you are USPAP compliant and giving your client what they are asking for.

 

[Terrel L. Shields]

your value is not for the highest and best use

"As is" it would be the HBU because conversion requires modifications ("as if" or "subject to"), regardless the HBU as if vacant is SFR. All that is telling you is you probably have an obsolescence...i.e.- the cost to cure.

 

[J Grant]

The scope of work says appraise “as-is”, I am presuming the effective date being the date of death (not necessarily so check on that). Therefore, you must appraise it as a two family. The opinion of value will be the present use as a two family.
However, in your HBU analysis, you will explain that your value is not for the highest and best use, if you are indeed sure that it is not. That way, you can be sure that you are USPAP compliant and giving your client what they are asking for.

Just because a dwelling is USED as a 2 family, does not mean that it IS a 2 family-it was built as a SFR and divided into 2 units but if it retains the essential floor plan and facade of the SFR and HBU is SFR, then it is a SFR with a cost to cure issue of lack of access between units retrofit it back. .

If a buyer wants to keep it a 2 unit they can , however from what OP wrote sounds like a duplex buyer would be competing with SFR buyers with the more likely typically motivated for a SFR as a fix and flip or renovate to live in..

 

[J Grant]

"As is" it would be the HBU because conversion requires modifications ("as if" or "subject to"), regardless the HBU as if vacant is SFR. All that is telling you is you probably have an obsolescence...i.e.- the cost to cure.

I agree. People are getting all hung up on the fact that this SFR was divided into 2 units. The dwelling is in fair condition THAT is the big issue here. Try finding fair condition comps in a fancy area like this, are they being renovated or torn down?

IT is more germane to ask is HBU as vacant, or as improved. If OP concludes as improved, then it is existing HBU since zoning allows either, and he believes the typical buyer would renovate it as a high end 5000sf residence..and such a buyer would not blink at the relatively low cost of opening up the access where it was divided up .

 

[Tom4value]

"As is" it would be the HBU because conversion requires modifications ("as if" or "subject to"), regardless the HBU as if vacant is SFR. All that is telling you is you probably have an obsolescence...i.e.- the cost to cure.

I stand corrected.
I would amend my HBU analysis and say that the SOW, the present use is the highest and best use. However, your second point confuses me. The OP says that it is currently set up as a two family, not a SFR. Why are you saying that the present use is a SFR?

 

[J Grant]

I stand corrected.
I would amend my HBU analysis and say that the SOW, the present use is the highest and best use. However, your second point confuses me. The OP says that it is currently set up as a two family, not a SFR. Why are you saying that the present use is a SFR?

I did not mean to say its prsent use is a SFR, but that the HBU is a SF ( assuming that is the case), and if HBU is a SFR, and the structure is still as SFR even with being divided up, then " as is", it is a SFR, being "used" as a 2 unit. The OP would of course disclose and describe.

 

[Terrel L. Shields]

Why are you saying that the present use is a SFR?

As if vacant, OP suggests the buyers are looking for SFR lots to buy teardowns. So I would assume if the lot was vacant, someone would build a SFR