I am doing an old two family that is vacant and before that had a non arms length rental history where the tenants just paid utilities. I wanted to ask should the scope of work still include rental comps along with sale comps and what residential form would you suggest. I see the GP residential has were you can select other and put in duplex or you could use the gp 2-4 unit form. Thanks for your input.
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Major Form question for non lender client
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Tom D
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use the 2-4 form gp. depends on what it's for. well, you need to determine the rent for the units for the grm, so i assume you need rental comps. what i would do is use MLS photos for all the comps.
if all they care about is the value, i try to cut out what i can.
the gp residential form will work for 2-4 only if all the comps are similar to the subject, but be sure you note 2 family on the front, market grid, and addenda. certainly cuts out a lot of work.
but again, it depends on who & what for you are doing it. i might use the restricted appraisal form cause of the limited use you expect of this appraisal.
if all they care about is the value, i try to cut out what i can.
the gp residential form will work for 2-4 only if all the comps are similar to the subject, but be sure you note 2 family on the front, market grid, and addenda. certainly cuts out a lot of work.
but again, it depends on who & what for you are doing it. i might use the restricted appraisal form cause of the limited use you expect of this appraisal.
Russ Kitzberger
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I would use the form for the template sales comparison, but I would paste that into a narrative. It is faster and easier to read than those GP forms.
As far as the scope of work, it depends on the intended use. If it is IRS Tax, yes, and you need the cost approach and all IRS items in the report.
Knowing that you had non arms length leases, I would think your intended users would want to know the income potential. Additionally, if there is not a large amount of sales data, you will need to do the other approaches to support the value; again depending on how important the intended use is.
As far as the scope of work, it depends on the intended use. If it is IRS Tax, yes, and you need the cost approach and all IRS items in the report.
Knowing that you had non arms length leases, I would think your intended users would want to know the income potential. Additionally, if there is not a large amount of sales data, you will need to do the other approaches to support the value; again depending on how important the intended use is.
Terrel L. Shields
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If non-lender, the client likely wants to know the market value of it. I would say that the sales approach is all that is necessary regardless a prior rental. You say it was old. So was it originally a duplex or just a house someone divided into two rentals. If HBU suggests a reversion back to a SFR, then I'd use old SFRs similar to it and see how that goes first.
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