Mix Condo With Fee Simple

[J Grant]

1 condo 2 fee simple all townhouses

Use the 2 non condo townhouses, and explain how they would appeal to the same buyer profile as comps...similar sf, comparable HOA fees/amenities. If the HOA fee for teh condo is $350 a month and HOA fee for TH is $150 a month, but cndo HOA includes homewowner insurance the fees are comparable. If condo HOA fee is $650 a month (for example) and communit has extgensive amenities and the tonwhouses have fees of $150 a month and lack amenities, the properties would not appeal to same buyer. So analyze the properties in terms of how they would appeal to a typically motivated buyer and why . However, since condo is a specific form of ownership, and lenders have concerns and requirements around them, I would recommenced including at least one other or even 2 other condo sales as comps in addition to the 2 TH sales...the condo sales can be older sales over a year old, further away, or villa design etc, but I think they should be included if at all possible.

 

[Don Clark]

Here's my saying:
If I cannot do it the right way, I won't do it.

With that I agree. I also would contemplate filing a complaint with the OCC as well as the Consumer Protection Bureau, and perhaps a small claims court to recoup my legal fees. What they did is a clear violation(to me) of Dodd-Frank, a federal law. A lender cannot dictate such nonsense and should not be allowed to get away with it.

Try these:

http://www.federalreserveconsumerhelp.gov/appraisal/appraisalComplaintForm.pdf



https://www.FDIC.gov/consumers/assistance/protection/mortgages/appraisals/index.html

 

[timd354]

With that I agree. I also would contemplate filing a complaint with the OCC as well as the Consumer Protection Bureau, and perhaps a small claims court to recoup my legal fees. What they did is a clear violation(to me) of Dodd-Frank, a federal law. A lender cannot dictate such nonsense and should not be allowed to get away with it.

Try these:

http://www.federalreserveconsumerhelp.gov/appraisal/appraisalComplaintForm.pdf



https://www.FDIC.gov/consumers/assistance/protection/mortgages/appraisals/index.html

Good luck to anyone trying to recoup their legal fees to defend a state board complaint made by a lender or AMC. Unless you can prove that the complaint was made in bad faith (which is near impossible in most cases) there is no liability and there will be no recovery. Also, good luck with getting the OCC or cfpb to do anything to a lender for making a state board complaint. The regulators are not going to punish lenders for making state board complaints since they are required to file a complaint in cases of a suspected USPAP violation per Dodd-Frank and the regulators are not going to discourage lenders from doing that even though some of the alleged USPAP violations reported will not be USPAP violations (as was the case here). Unless it can be shown that the complaint was made in bad faith (which, again is usually going to be impossible to prove), trying to sue a lender/AMC or filing a complaint because of a state board complaint is a waste of time.

 

[Michigander]

Back to the OP...yes you can use non condo townhouses and condos with townhouse design. Condos are a form of fee simple ownership, with shared common elements owned, a HOA, docs on file etc. I have mixed in comps when need be and explain. Would a buyer consider them alternates for each other is the issue and test of viable comp substitutes. Are HOA fees and condo fees relative , are amenities similar etc.

If I had a subject condo comp in TH design and only one in subdivision sale, I'd use perhaps 1 or 2 TH non condo sales, then one older sale in subdivision if it exists (even 2 years old), and then find one out of area, or else a condo of different design but similar sf selling within the price range as fourth comp.

I agree, and if you watch shows like House Hunters International, you will see buyers look at both quite often. When I bought, I also looked at both. You have to try and mirror what the market does, and if the market considers both, then so should the appraiser. Of course, if you can do apples to apples it makes far more sense to stick with the same type of property, but it isn't always possible. Just explain the heck out of it and you should be good.

 

[Webbed Feet]

I am appraising a townhouse condominium. I have only one inside sale However outside
I have 2 exact matches except for the title the 2 matches are fee simple town houses
not condominiums. These are 2 different type ownership and the fee simple goes on a 1004
and the condo townhouse goes on a 1073 My question is can I mix these properties and put
them all on a 1073? 1 condo 2 fee simple all townhouses

It would be a pure joy if APPRAISERS would learn about estates and titles. Until they do our trade will continue to look like a bunch of fools. So you know. MOST condominium sales are FEE SIMPLE SALES. So saying you had "fee simple town houses not condominiums" just makes it sound like you have no idea what it is you are doing. "Fee Simple" does NOT go "on a 1004" with a "condo townhouse goes on a 1073." If you bother to check the Fannie condo reporting form it has "Fee Simple" on it too just like the 1004 does. Until you start to finally learn these things you need a supervisor's help. "Townhouse" is a reference to a construction style. An assumption that any market, in any location, accepts a similar construction style to have a value the same as a completely different form of ownership is YOUR JOB FIND OUT.... NOT appraisers all over the country to find out for you.

I suggest a "Proxy" study from a time period when there were both sales of Condominiums and Non-Condominium Townhouse styles to compare to find out if the markets at that time were reacting with a difference in values. If there was a difference then, there probably is a difference today. Just guessing at it and then asking here is lazy and not how to grow as an appraiser. A proxy study comes from a differing location or the same location at a different point in time.

 

[Deleted member 130081]

I would agree with most. The form you use is dictated by your subject, while the support (sales) you offer in the report to back up your opinion are dictated by market acceptance. For me, I always have a tough time with cert #4 when sales are so limited. Glad someone brought up the fee simple thing. So yes, if your market sees a "townhouse" (attached dwelling) the same as a condo (usually also attached, but with a HOA/restrictions), then I don't see a problem in the logic of using those sales. The problem I see in your scenario is a lack of data. If you don't have enough sales of condos, so then you need to turn to attached townhouses to find data, how can you compare the two types of ownerships (restricted vs unrestricted)? Maybe a historical study would help.