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My first appraisal for a duplex?

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Freshman Member
Jan 15, 2002
I have received my first order for a duplex refi. I was wondering if I could get some ideas and information on what kind of questions to ask for GRM, what to look for during the inspection, ie just the typical process for 2-4 family appraisal.

To make it more difficult, the L/O has stated on the order that this is a "blanket mortgage" for two detached units sitting side by side with the owner occupying one unit which equals 3 tenants, 1 owner and they want it all on one report, which stated as a full appraisal, which form would better suite this situation 1004 or 1025.

I am more worried about comps, can I use duplex comps make adjustments and multiply the value by two or should I try and find a 4 plex.

I hate to bother you professionals but I am just to cautious of an appraiser, I like having all of my i's doted and t's crossed. This is one of those situations were I need to know but I hate not knowing how to do this, and there is only one way to learn, EXPERIENCE.

Mike Garrett RAA

Elite Member
Gold Supporting Member
Jan 14, 2002
Professional Status
Certified Residential Appraiser
JT, you haven't mentioned your license level. Do you have a supervisory appraiser? This type of assignment could easily become a complex appraisal and needs someone with experience to at least guide you thru the process.

My suggestion is to find someone who does this type of work on a regular basis and follow them through this one.

Does the lender want it on a small income form? If so, Henry Harrison has an excellent guide to using this type of report. Make sure you SEE copies of leases to verify the rents. Owner/Investors are notorious for overstating rents. Ask them for actual expense information and verify it too. This is one area where your liability is much higher than doing a single family residence.

Lastly, I hope you are charging enough because the form is a bugger! If comps are scarce, that further complicates your job.

I wish you well!

Ray Ohler

Sophomore Member
Jan 15, 2002
it COULD very easily become a complex assignment. If the LO wants two separate (even if they are contiguous) parcels, with separate deeds, appraised as "one", then you have to perform the appraisal based on a "hypothetical condition" (reverse subdivision). That may very well be in line with the subject(s) most probable buyer but complicates it somewhat for the appraiser. Not a BIG deal but to present the report in a professional manner you need to, as you said, dot the i's... As far as inspection goes it isn't really any different from inspecting any other property. The 1025 form is the form to use and gives you plently of room for explaining PRETTY much everything you should have to explain, if not it can be explained on addendums referenced in the report. The verbage needed will depend on how you are combining the properties. As far as comps, whatever the market offers is pretty much what you are stuck with. Two, three or preferably four units. Good luck. One thing, you mentioned "full" appraisal. I assume you mean a "complete appraisal" in contrast to a "limited appraisal". Use of the "hypothetical condition" does not, in itself, make the appraisal limited.

Leon Stewart

Jan 15, 2002
As one Poster indicated, you didn't indicate what your License Status was. If you are a Trainee you should have a Supervisor, and If you have your License and haven't done a 2-4 Family yet, you might be in trouble on these types of reports for some time. There is a lot involved in Form 1025, and you didn't fully describe the Subject Property. Is it two 2 Family Dwellings on the same lot, (you indicated that the owner occupied one unit and there were 3 tenants) and the Lender indicated that there will be a "Blanket Mortgage", which could mean that these are two separate Parcels, and I don't ever put two or more Parcel Numbers on the same report even though some Lenders will make such a request.

If there is one Parcel Number, the Blanket could occur with some other Property(s) that the Borrower owns that is not being Appraised. When you check the Subject Property on the County's Public Records there should be an indication whether there is one or two parcel Numbers.

It seems as if someone is trying to set you up by assigning you a Report that you are not qualified to do, and they are probably paying you a substandard fee to do the Report. If I was you, i wouldn't do that Report alone


Larry Lyke

Senior Member
Feb 2, 2002
jtmilby --

From the order as you describe it, this LO might want this appraisal on a 704 with only a picture of the house across the street!

The one thing that is of paramount importance in appraising is have the assignment all figured out and straightened before trying to figure out the unknowns or should-ofs that the client could of told you but didn't.

RIGHT NOW, believe it or not, I'm doing the 3rd final-final satisfactory completion report and there's still undone work that the new HO and Builder have a side agreement about with the lender holding the money without any obligation yet to disburse it BECAUSE the agreement isn't part of the contract although it was financed! I think I'll make a pitch for the money -- my work and attention to detail has been without blemish.
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