Triplex Appraisal

[kirkhouses]

Dear members,

I have a question about an apprasal on a triplex I own. I am fixing it up to sell it. I have always believed that " investment property" was labeled as less valuable than single family dwelling units. Then, I read a post by Pittsburgh Pete that I saved and printed. He states ( pete please email me at kirkholeman13579atcomcast.net id love to talk ) he states, " Im working on a house in washington, pa, its value as a multi-tenant building far exceeds its value as a single family residence.Even without deducting costs to convert to sf. I have comps from domania.com and know my area. It is 3096 feet, and brings in 1940 a month. It has a unit downstairs, and two units upstairs. I wanted to know if there is a LEGAL ( of course) way where it will apraise equal to single family dwelling comps? The street is 115 a square foot on average. Please advise. I am a photographer too, any of you guys want help with that-please ask! I can't wait to hear you all's thoughts.

Sincerely
Kirk

 

[Socrates]

Without actually completing an inspection and subsequent appraisal of the property, no appraiser will be able to respond to you in terms of value. I can tell you that our process requires us to use comparables that are similar to the subject in terms of location, size and utility. If your home is a multi family home, it is doubtful at best that a single family home would be considered.

 

[Ted Martin]

There is no reason that a multifamily property wouldn't appraise for more than a single family home. It depends on the individual property and the market that it exists in. As an example single family homes converted to multifamily use are worth less in one of my markets because of their proximity to a state university and the high cash flows that they generate. However in other markets converted homes sell for substantially less than single family homes. Yet in both of these markets the physical improvements are very similar in style, age, condition, etc..

Ultimately it comes down to the market and the buyers that dominate that particular market.

 

[Ted Martin]

Stupid fingers!

As an example single family homes converted to multifamily use are worth less in one of my markets because of their proximity to a state university and the high cash flows that they generate.

Should be more not less.

 

[Webbed Feet]

Hire a very good, local, real estate appraiser that can sit down with you in order to better understand what you are trying to accomplish versus what you are willing to do, to consult for you.

 

[kirkhouses]

thanks so far you all!

 

[Terrel L. Shields]

Location location location....
Even for us Arkies.
speaking from Siloam Spg area
In general, our duplexes - fourplexes were cheaper built. No extra trim, Lowe's specials as plumbing, etc. and they were never priced as high per SF. Some exceptions. Ravenwood, for one. Those were much nicer duplexes and they had access to the pool, etc. Problem was that they still rented and when they got hard to fill up, suddenly they lost a lot more value per SF than a comparable SFR. Those $800 a mo. rents went back to $650, then $600 and 'investors' - many without prior experience and being managed by the seller of the investment - wanted out and out they got with tail between their legs... and don't even ask about WalMart vendor space in Bentonville....they are real piggy bank breakers.

 

[kirkhouses]

county assessor appraisal a valid selling valuation tool?

Hey guys-
Is the tax statement of assessed value a valuable negotiation tool when I go to sell my building? My real estate attny said it was. Thoughts and advice?

Thanks
Kirk

 

[Webbed Feet]

Hey guys-
Is the tax statement of assessed value a valuable negotiation tool when I go to sell my building? My real estate attny said it was. Thoughts and advice?

Thanks
Kirk

That would depend on a combination of public reputation of any specific governmental assessor's assessments, versus the knowledge or ignorance of the parties you hope the information would be "vaulable" to.

 

[DMZwerg]

In most of my local markets duplexes tend to be worth less than single-family of the same SF EXCEPT for areas like mentioned below. Near colleges you tend to see more basement apartments, attic efficiencies, and so forth and thus many originally SFR were converted to duplex and duples to 3 triplex or even 4-units before zoning/permits started cracking down on "illegal conversions" (many could still be legal depending on when they were converted, etc, or at least grandfathered non-conforming).

So, like Ted mentioned, location and area can be everything. Consider hiring a skilled local appraiser to determine highest & best use as SF or 3-unit. (probably at least a certified residential with experience with complex properties)

There is no reason that a multifamily property wouldn't appraise for more than a single family home. It depends on the individual property and the market that it exists in. As an example single family homes converted to multifamily use are worth less in one of my markets because of their proximity to a state university and the high cash flows that they generate. However in other markets converted homes sell for substantially less than single family homes. <snip>

Ultimately it comes down to the market and the buyers that dominate that particular market.