Interesting Appraisal Request - Duplex valued as separate units in multiple situations

[austintheappraisr]

I got an appraisal request last week and I have been going back and forth with the guy trying to figure out exactly what he is looking for and the best way to approach it. Then yesterday he added d and e below to the assignment, so here I am.

The guy owns a 2-unit property that he wants valued in multiple situations.

Values include:
a) Unit #A by itself
b) Unit #B with the 2-car garage
c) Unit #B with one of the garages
d) Value of the garage as another unit converted to GLA
e) Value of the basement as another unit converted to GLA

It was originally two TIC units but this guy bought both. It is listed as a duplex on public records and was listed as 2 TIC units and as a 2-Unit property when he bought it.

I thought of doing each situation on a separate gp condo form but that seems kind of redundant and obviously these aren't condos (but the intended use is for internal purposes). Other option is a narrative but he doesn't want to pay the amount I would charge for that.

And now the more I'm reading through this, the more I'm considering declining the whole thing, but would be open to any ideas

Thanks a million!

And for the record, I am certified... not sure why my bio still says licensed

 

[Flakey]

5 values, 5 analyses, 5 fees

 

[J Grant]

you answered your own question (it is not a condo ) but why did you consider using a condo form...

I would decline. It is a problem child assignment and a supposed internal use can end up elsewhere, and never assume a loan will stay in house, they can offer it later to another investor or fannie, and that is when the appraisal can get a forensic review .

Valuing each unit with or without a garage is okay, but valuing the basement or garage as if they were converted to GLA sf /creating additional units for occupancy is red flag time because it gets into possible violations of legal 2 unit use, permit issues, safety issues etc.

 

[Mark K]

I would decline. It is a problem child assignment and a supposed internal use can end up elsewhere, and never assume a loan will stay in house, they can offer it later to another investor or fannie, and that is when the appraisal can get a forensic review .

No lender was mentioned; sounds more like a private appraisal.

If the OP decides to go forward with it I suggest a narrative format with a lot of hypothetical conditions. If he doesn't want to pay for a proper appraisal, that's his problem. Nothing about this suggests a form report of any type.

 

[J Grant]

Whatever the format ...how can we HC away an illegal use (unless zoned for fourplex)

If the zoning allows for max 2 unit/2 family/ and HBU is legal use, how can we value a non legal zoning compliance third or fourth occupancy unit ( made from garage or basement )

Owners of rentals sometimes convert garages or basements/other without a permit and rent as bootleg units to collect income. But there an owner is asking an appraiser to go on record for that as a value - reason imo to decline order

 

[austintheappraisr]

No lender was mentioned; sounds more like a private appraisal.

If the OP decides to go forward with it I suggest a narrative format with a lot of hypothetical conditions. If he doesn't want to pay for a proper appraisal, that's his problem. Nothing about this suggests a form report of any type.

Not a lender appraisal, it's for the owner. But yes just checked and zoning is only 2-unit.

Thanks for the input. If anything I'll try to push a narrative without the conversions.