How Do You Define "Multi-Family?"

[Michigan CG]

Multi -- more than one. I count duplexes as multi-family, if they are legal.

A duplex is not a single-family dwelling.

 

[Marcia Langley]

In the context you describe I agree with Howard, Jim, Dennis, and DJ. Multi-unit means 5+ unit rentals.

 

[Alison Swain]

Thank you all. No UW problem, just another appraiser arguing over what seems like it should be common sense but it isn't. :new_smile-l:

 

[Howard Klahr]

Multi -- more than one. I count duplexes as multi-family, if they are legal.

A duplex is not a single-family dwelling.

Tim,

You are correct, duplexes,triplexes, quadraplexes are not "one unit" housing, they fall into the 2-4 unit housing field on the form, not multi unit.

 

[Eli Weiss]

For the purpose of classifying land use on the residential form, condos and townhomes are included in what is refered to as "one-unit" housing i.e. individual ownership.

Multi-unit housing are basically apartment building/complexes - numerous units single ownership

Howard, the form asks for the land use, not the type of ownership, just like the zoning of the land allows for example a large 200 unit complex and the ownership of the units can be either co-op or condo.....so condominium land use is multi-family, we are talking about use here not ownership.

 

[Howard Klahr]

Howard, the form asks for the land use, not the type of ownership, just like the zoning of the land allows for example a large 200 unit complex and the ownership of the units can be either co-op or condo.....so condominium land use is multi-family, we are talking about use here not ownership.

You are incorrect. If you take any of the courses on how to fill out the form you wil learn that they are not asking land use from the planning and zoning perspective but rather are more interested in defining the residential market in terms of competing properties.

By the way a co-op or a condominium would both be "one unit" housing in regards to what is being asked on the form.

 

[Eli Weiss]

Perhaps this is one of those never ending appraisal arguments....
Courses don't tell me much, who created those courses? well, somebody with an opinion, and aren't we all entitled to opinions?
After all an appraisal is only an opinion....

I'll tell you what, the person who wrote this form, doesn't know either what exactly he is asking for, just like many other none-sense question in the FNMA forms, I have never done a narrative, but you should know the good feeling of it....

 

[timd354]

You are incorrect. If you take any of the courses on how to fill out the form you wil learn that they are not asking land use from the planning and zoning perspective but rather are more interested in defining the residential market in terms of competing properties.

By the way a co-op or a condominium would both be "one unit" housing in regards to what is being asked on the form.

Howard, your answer is ridiculous, the OP and the section of the form that we are discussing specifically refers to "Present Land Use" not competing properties. If you have not noticed, there is a separate area of the form which defines the residential market in terms of competing properties....it is to be found right above the sales comparison section.

I would say that whatever courses you are referring are just dead wrong.....and it looks like FHA agrees with my view on the subject (from page D-17 of Appendix D of the Valuation Protocol - emphasis added):

Present Land Use %

One-Unit, 2-4 Unit, Multi-Family, Commercial, Other
Estimate each type of land usage in the neighborhood. If there is no land in the neighborhood with one of the designated classifications, enter a “0”. If a portion of the land consists of parks or other unspecified classifications, enter the estimated percentages on the “Other” line and explain in the neighborhood description section.

 

[Ariba]

It always amazes me that appraisers cannot agree on even the simplest question on the appraisal forms. No wonder appraisers have credibility problem with the general public. I can just see how something as simple as the definition of Multi-Family would undermine the appraisers credibility in any court proceedings or state investigation on the appraisers competency? I'm sure glad that the USPAP update course clarifies these important issues. :Eyecrazy:

 

[Michigan CG]

Howard, your answer is ridiculous, the OP and the section of the form that we are discussing specifically refers to "Present Land Use" not competing properties. If you have not noticed, there is a separate area of the form which defines the residential market in terms of competing properties....it is to be found right above the sales comparison section.

I would say that whatever courses you are referring are just dead wrong.....and it looks like FHA agrees with my view on the subject (from page D-17 of Appendix D of the Valuation Protocol - emphasis added):

Present Land Use %

One-Unit, 2-4 Unit, Multi-Family, Commercial, Other
Estimate each type of land usage in the neighborhood. If there is no land in the neighborhood with one of the designated classifications, enter a “0”. If a portion of the land consists of parks or other unspecified classifications, enter the estimated percentages on the “Other” line and explain in the neighborhood description section.

Timd, you are correct, sort of....you have to remember that there are many types of assignments and many factors that determine value. You are limiting your scope of assignments to Forms. Not all appraisers fill out forms, and if you are referring to the common appraisal forms then you are technically correct.

However, there is a distinct disfavor for any 2-4 unit properties in certain neighborhoods. If you throw in mixed properties in a subdivision with single-family homes, duplexes and 3-4 unit properties it is only a matter of time before the multi-unit properties bring the neighborhood down. it is proven time and time again.

Therefore, I will stand with Mr. Klahr, that my, and his definition of multi-family properties is any property containing more than one unit.

We are not all form fillers, and additionally, if a neighborhood has multi-family housing, there will be differences in housing prices in many markets vs. neighborhoods with no multi-family properties.