Legal two family, used as two family, was purchased as two family, separate utilities and entrances- client want appraisal as one family?

[iiakov]

I have 1004 assignment for one Brooklyn property for refinance purposes. At the time of assignment, after checking all the records (incl C-of-O etc..) I find that subject property is legal two family and inform client about incorrect form and request that the form should be changed to 1025 . Typical situation...
I inspect the property and find that it is two family home, functioning as two family, separate meters and entrances, etc.. Notify the client again that original 1004 form would need to be changed to 1025.
This morning I have email that client is rejecting my request and want to appraise it as one family, be cause it was previously appraised as one family by some one else.
Does any body deal with something like this before ? Is it legal to request to do the wrong and most likely misleading appraisal ?

I would appreciate any advise how to proceed.

 

[glenn walker]

No I would walk- There is no way you can do a credible report trying to call a two unit a single family home. If that bad boy ever defaults on the loan, you will be in a world of hurt. Try talking your way out of why you appraised a small income property as a house ? --Run don't walk--heck if they are a good client I would tell them no inspection fee and tp please assign it to another appraiser.

 

[iiakov]

No I would walk- There is no way you can do a credible report trying to call a two unit a single family home. If that bad boy ever defaults on the loan, you will be in a world of hurt. Try talking your way out of why you appraised a small income property as a house ? --Run don't walk--heck if they are a good client I would tell them no inspection fee and tp please assign it to another appraiser.

Thank you.

 

[Joe Flacco]

You can have two legal units and the highest and best use be single family. If the probable buyer is a primary residence buyer and not a investor purchasing for income then the HBU is likely single family and not a two unit apartment.

 

[Joe Flacco]

For example a brownstone in Brooklyn with a separate basement unit. Those are not two unit income properties. Those are single family homes that happen to have a basement level finished as a separate unit.

 

[James Micozzi]

Sorry AK. All basement apartments are illegal in Brooklyn. bad example.

 

[jay trotta]

I have 1004 assignment for one Brooklyn property for refinance purposes. At the time of assignment, after checking all the records (incl C-of-O etc..) I find that subject property is legal two family and inform client about incorrect form and request that the form should be changed to 1025 . Typical situation...
I inspect the property and find that it is two family home, functioning as two family, separate meters and entrances, etc.. Notify the client again that original 1004 form would need to be changed to 1025.
This morning I have email that client is rejecting my request and want to appraise it as one family, be cause it was previously appraised as one family by some one else.
Does any body deal with something like this before ? Is it legal to request to do the wrong and most likely misleading appraisal ?

I would appreciate any advise how to proceed.

Well now, what do we have here ?? Would love to see that previous report, ask for a copy.

 

[DWiley]

Market value must be based on HBU. It matters not what was done previously. One must analyze the HBU. In practical terms that means appraising it both ways and seeing which one is higher. A value based on something other than the HBU is a use value, not a market value

 

[Tom D]

just say you do not have the experience to do a voodoo appraisal. and forget about the lost time.
was it at one time a single family, converted? it still has 2 kitchens? can you get to each 'unit' from the inside. single family converted to 2 family can become a single family again with some cosmetic changes.
now if it was built as a 2 family, then forget about it.

 

[Terrel L. Shields]

Is it legal to request to do the wrong and most likely misleading appraisal ?

No skin off their backside. It's all on you. Withdraw from the assignment and save yourself a bunch of grief.