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Legal duplex to be appraised as an SFR?

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AMF13

Thread Starter
Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
when a high end property has a guest house, it usually really is used for guests

This is far from a high end property :lol: , in that case it would be pretty obvious as you note.

as in basically doing 2 appraisals to determine which one really is the H&BU.

Yep, whichever use brings the highest value = H&BU. Think I'll print this thread for when I write all my comments. Can't wait to get rid of this and go on to something more productive $wise. :(
 

bradellis

Member
Joined
Jan 16, 2002
Lee,

Definitive answer:

Check the public records. It will tell you for certain here in SoCal just what it is= SFR, duplex, etc.

If it says SFR, then scroll down to see if the features on the assessor record show "guest or servants quarters". If so, it is SFR and can be properly appraised that way.

if it says duplex, then you must do it that way.

If they want to argue, have them send you a prelim title that shows it to be SFR.

Right now, I am waiting on one in which the public record shows it as triplex, the title says SFR and the MLS says duplex! The title will rule, but we have asked for clarification.

By the way, pay no attention to anyone saying that whether or not it can be rebuilt as is would be the determining factor. In CA, there is a lwa that essentially will allow you to rebuild almost anything already existing no matter if it conforms to zoning.

Brad Ellis, IFA, RAA
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Lee,
The following is from FNMA Selling guide 04/12/02

Section 203.01 – Manually Underwritten Mortgages

We have five different appraisal forms that can be used for manually underwritten mortgages, depending on either the type of property being appraised or the type of mortgage that is secured by the property. The appraiser must use our latest version of one of the following forms and include any other data-either as an attachment or addendum to the appraisal report form-needed to adequately support the opinion of market value:

• Uniform Residential Appraisal Report (Form 1004), for one-family properties and units in planned unit developments (including those that have an illegal second unit or accessory apartment that we will consider as acceptable security) that secure either first or second mortgages. Form 1004 may also be used for two-family properties, if each of the units is occupied by one of the co-borrowers as his or her principal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). In addition, appraisals for units in condominium projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the owners' association fees and the quality of the project maintenance;
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Frederick,

USPAP comes first - H&BU is primary - the lenders guidelines are secondary to USPAP and correct appraisal methods. Which makes the legal zoning take precedence over the lenders guidelines. Those guidelines state what they will accept and on what form. It doesn't say you can ignore zoning and H&BU as long as it will fit on the form.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Pamela: Excellent posting!! Lender's guidelines describe what type of loans they are willing to do on what type of properties they will accept as collateral. USPAP outlines the procedures to follow and lender guidelines are only supplemental with the only "rule" that USPAP must be followed.
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Pam and Jo ann, slow down on th coffee this morning!! No where in my post did I say that USPAP does not come first. Of course it does. I only posted the info for Lee to see that there is a precedent to handle certain properties in this manner and that the lender he is dealing with is probably one of the better informed, i.e. actually read their guidelines.
 

AMF13

Thread Starter
Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I only posted the info for Lee to see that there is a precedent to handle certain properties in this manner

And I thank you Frederick. The reference is appreciated, even though that job went up the wire Saturday afternoon. The part in red hits the nail on the head. :)
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Highest and best use is as a "cat house"; however, that use is not legally permissable; therefore, I have appraised the property as a single family residence with guest cottage so the lender will give the borrower a lower interest rate. Wonder how that would fly in the addendum?
 
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