Single Family Comps on Condo Report?

[John Hassler]

If the property is in fact a condo then a 1073 would be correct if a form report is to be completed. As to comparable selection there is no "one" correct answer. It really depends on your specific market. What properties directly compete with the subject and would be alternatives to the subject for the typical buyer? It could be SFD, PUD, or neither in which case you will have to go back in time or further afield to find detached condos. Cool assignment, enjoy!

 

[Judith Maves-Klatt]

Thanks so much everyone for your input! These are in fact condos. After doing further research I have found one other condo project in the area with similar detached homes, so that will be one source of my comps. I'm in a small town, so these unusual subject properties make similar comps difficult to find. Thanks again!

 

[kickerdad]

Several years ago I ran across the same situation in Duvall, another very small town in Washington. I used 3 comps that were PUD units and 3 comps that were detached SFRs. The SFRs were really the competing properties. The only PUDs within 15 miles were almost new and better quality with common amenties. No UW problems.

 

[BUCKET]

are you sure there is a lot and block for site on each unit or jsut talked about as an undividable interest. there is a group of these in boulder city, nevada, and the deed reads jsut like and other condo and the sales rpcie refelect significnat difference to the other similar detach single family homes.
bucket

 

[glenn walker]

These are fairly common in my market area... ok here we go, the property looks like any other Single family home, and the owners even have a fence around their yard, the Title report states that the property is Condominium, they have a Home that the builder dropped on a single parcel of land along with maybe 50 or 100 others. Thats a Condo, it's called a Detached SFR style Condominium, most condos are attached but it's not the design that makes a condo. A pud is not a form of ownership, a PUD is simply an Attached or detached home located on its own fee simple lot and the common areas are shared have a HOA to cover the amenities. Many appraisers and especially Realtors can never determine the difference between an attached condo and a PUD , they think because both look the same and both have common areas and a HOA they are Condos. Just remember if the property has it's own lot owned in fee simple its a SFR or SFR-Pud, if the Title report says form of ownership is Condominuim you have a Condo. ( Condo = form of ownership ) and the owner has the right to use his defined area but does not own the lot or land under him in fee but as some number like a 1/200th of an undivided interest.

 

[h2obio]

Exactly!..........

 

[Lee Lansford]

"...In any case, they sit on a small parcel of land that is owned by the owner of each..." (dwelling)

Are you certain of this?

 

[Lee Lansford]

...My question is - can I use single family homes that are not considered condos as comps in my condo report?...

The answer: Maybe.

The credibility of the analysis depends upon whether--and this is probably all too obvious--there is sufficient market available to identify a relationship (i.e., what adjustments, if any, might be required) between SFR detached w/condo ownership vs. those that are not condo ownership.

 

[Doug Wegener]

site condo

These are fairly common in my market area... ok here we go, the property looks like any other Single family home, and the owners even have a fence around their yard, the Title report states that the property is Condominium, they have a Home that the builder dropped on a single parcel of land along with maybe 50 or 100 others. Thats a Condo, it's called a Detached SFR style Condominium, most condos are attached but it's not the design that makes a condo. A pud is not a form of ownership, a PUD is simply an Attached or detached home located on its own fee simple lot and the common areas are shared have a HOA to cover the amenities. Many appraisers and especially Realtors can never determine the difference between an attached condo and a PUD , they think because both look the same and both have common areas and a HOA they are Condos. Just remember if the property has it's own lot owned in fee simple its a SFR or SFR-Pud, if the Title report says form of ownership is Condominuim you have a Condo. ( Condo = form of ownership ) and the owner has the right to use his defined area but does not own the lot or land under him in fee but as some number like a 1/200th of an undivided interest.

I dont believe that is always true. Sometime they own the land.

Here is an example of the legal where they own the land and portion of the common area lot and it is definitely a condo with a condo association.



Por Lot 507 And Lot 512 Mb 043/057 Tr 2364

 

[Rich Heyn]

Michigan has tons of what are called "site condo" developments. You own the site fee simple and have the full bundle. You also own something in common with other owners in the mandatory property owners association. Common ownership might be nothing more than the private road or might include pool, clubhouse, whatever.

It became so cumbersome in Michigan to develop land under the state subdivision control act that some clever attorney in Lansing figured out how to do it under the state's condo act. I actually developed a small (10 lot) site condo development about 15 years ago. It was much simpler, less expensive and quicker than the alternative.

I heard that at one time, perhaps still true, that over half of all new development in Michigan was being done as site condos.

The point here is that in much of Michigan the market cares not whether it's a site condo or traditional lot in a subdivision. Comps are, in many cases, interchangeable.

It all depends on the local market.