Townhouse Question - SFR or Condo form?

[Financially Feasible]

Here's a dumb question... did you get the HO's view on the subject? Obviously, in a condo situation, you don't own the land whereas you do own the land (in most cases) with a SFR (unless you're a leasehold position). Did you pull the deed? I would investigate those two methods...

 

[Joyce Potts]

Here's a dumb question... did you get the HO's view on the subject? Obviously, in a condo situation, you don't own the land whereas you do own the land (in most cases) with a SFR (unless you're a leasehold position). Did you pull the deed? I would investigate those two methods...

Regardless of the type of ownership (Condo vs. SFR) how does a knowledgeable buyer perceive the functional utility of the two units?

How many times have we appraised properties that were nearly identical, but one was zoned condo, the other SFR? The only difference--the monthly fees and/or assessements.

 

[CCAAMO]

Regardless of the type of ownership (Condo vs. SFR) how does a knowledgeable buyer perceive the functional utility of the two units?

How many times have we appraised properties that were nearly identical, but one was zoned condo, the other SFR? The only difference--the monthly fees and/or assessements.

I'm assuming you ment to say a pud ( de miniumus pud) and not a condominium. If thats the case and you only have say a $50 per month HOA fee for some minimal landscaping, then you have a point, assuming there is a lack of non pud comparables in the area.

As a general rule ( and as a general rule is true most but not all of the time) a condo board and cc&rs have more control than in a lot of PUDs which makes them a bigger pain.

 

[Mike Kennedy]

Really wish folks would learn to check Building and Zoning Files, including the original prospectus / site plan for Townhouse developments in markets where zoning and C.O.'s are required.

Assessment records frequently mean ......diddly. Many Assessors routinely tax ALL Townhouses whether condo or SFR's in puds ........the same, especially when the market determines a 30 x 40 lot has no contributory value vs a townhouse in a condo development. Some property records maintained by Assessors actually include Deeds with legal descriptions. County Recorders do as well. Due diligence means researching ALL readily available Municipal Records - NOT just Assessment Records.

Further, be aware that, due to shortage of manpower, often, Assessors' may simply physically measure 1 style, 1 design, or 1 of several in each Condo or Townhouse development then CLONE sketches and GLA. They often include Finished Basement area in Total GLA for both types of Townhouse style Units. Researching Subject's AND Comparables requires the same awareness and diligence. Make life simple by contacting owners requesting they provide copies of Tax Statements, HOA Fees, Copies of Prospectus, Sketches, and DEED with legal description and have them on the kitchen table when you arrive for the Site Inspection. Some will have all, some will have some, some will have none of the above. Recommend faxing request for info directly to Management Companies, HOA Representatives, requesting same from Listing / Selling Agents, AND FROM CLIENTS i.e. title reports etc. at the time of assignment. In other words, Assessment Records .........are NOT the "be all and end all" when researching either subject's or comparables.

ALSO be aware, PUDS exhibit ALL kinds of mixed uses .......including detached single family, occasionally 2 family units, attached or semi-attached Ranch style, Cape style, Colonial Style, Contemp Style, or Townhouse Style Units.

A Condo can be a stand alone development either located outside a PUD or within a PUD. So can the other unit types above.

Research and Verify data from ALL available sources. Recommend identifying PUDS, CONDOS, AND STAND ALONES in each local municipal market one covers....... set up MASTER DATA files on each ......along with Muni Zoning and Use Codes and the most recent Zoning Maps. Update them annually. Takes time at first........ once you have the data, life becomes a whole lot easier and a whole lot more profitable...........Time IS Money. Geocompetency and Diligence COUNT.

 

[CCAAMO]

Mike, good advice. Don't forget to tell the homeowner how you like your coffee then you will have everything you need.

 

[Mike Kennedy]

Light and Sweet. Thanks for the Reminder. You might be surprised at how often HO has everything necessary in their lil metal box in the closet or nearby in a bank safety deposit box along with closing docs from their purchase. Investigating all data sources includes asking the HO. Unfortunately, many often state......."I've often wondered why it took so long for appraisals to be completed. No I know!. None of the other Appraisers ever asked - I keep all important house information right here - all they had to do was ask. Would you like a jelly donut with your coffee"?

 

[David Dietz]

For the state of Florida a Condominium and what is required for a property to considered such is covered in Statute 718.104

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=Ch0718/Sec104.htm


If I am interpreting the statute correctly the legal should have the word condominium in it not just unit. Also a declaration of condominium should be filed. It is important to ensure when searching for the Declaration of Condominium you do not confuse them with CCR'S which in my county are recorded under the same identifier but are different animals.

 

[TC]

Man, this is the one topic that always comes up every 2 months or so. If I couldn't determine whether it was a condo or not I'd turn in my freakin' Disto. Is there an EASIER thing to do in this biz?

TC

 

[Mike Kennedy]

Man, this is the one topic that always comes up every 2 months or so. If I couldn't determine whether it was a condo or not I'd turn in my freakin' Disto. Is there an EASIER thing to do in this biz?

TC

Sure, decline 2055 Exteriors :new_smile-l:

 

[Lee Lansford]

Thanks for the great reply!!! Oh I forgot one thing though...The land use description is listed as "condo". Does that matter?

The short answer to your question: Yes, it matters.