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Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
I did an appraisal a couple of weeks back. I went to the property under the impression that it was a single family residence, only to find out when I got there that it was actually two attached units. There is no door or access from one unit to the other. They are two distinctly different units. The owner of the property lives in one, and rents the other out. I called the LO and let them know that this was not a SFR, but instead a duplex, and I would appraise it that way.

The LO then goes into the typical conversation about calling the second unit an in-laws quarters. By the way, this is a good LO, not a rat. I told him that of all the properties I've seen, this one definitley could be an in laws quarters, except that it has a current lease on it, and I have a copy of it.

Now the LO is being restipped by the underwriter asking why it was appraised as a duplex, when "it looks a SFR in the photo". I sent in an addendum stating that the two units were distinct, with no access points between them as illustrated on the sketch in the original report, and that there was currently a lease on the second unit. It is in fact an investment property.

Apparently the addendum didn't matter. The underwriter is telling the LO to tell me that it must be appraised as a SFR, and that they will not accept this property as a duplex. They even "had a review appraise drive by it to verify".

So do I do a new appraisal on the property as a SFR????? It obviousluy is not a SFR, but instead a duplex. Could it be an attached in-law's quarters? I suppose, but that isn't necesarrily H & B use. I'm defining H & B use based on what use brings the best value, within the guides of current zoning (which allows SFR and duplex).

HELP!!! What would you do???? I'm supposed to call the LO back tomorrow morning, and any help would be GREATLY appreciated.
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
have you called zoning?
How is it zoned?
 

Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Rich,
It is zoned R-5 which allows SFR and Duplex use, which was reported in the original report exactly that way.
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I'm defining H & B use based on what use brings the best value,

There's your answer. Which use has the higher value? That's the way to comp it.
 

Tater Salad

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Missouri
Is it a converted SFR, thus the appearance of a SFR? If so, was the conversion legal (with permits) assuming permits are required? Does it have separately metered utilities? 2 different addresses?

Either way, if you did do it as a SFR, I suppose you could do a hypothetical condition as SFR based on their request, blasted all over the place in your report, and do a cost to convert back to a SFR. Ugly & painful. Oh, and charge them for it.
 
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