Triplex, two buildings,

[J Grant]

It's not really that difficult. If your HABU analysis concludes that the property should be split, you call your Client explain the situation and ask them if they want it appraised as a whole or as if split. If they want it as a whole, then you are providing value in use.... and it's a 3 family property. However, I would bet $5 to a doughnut, that your HABU analysis could go either way.

Imo, folks are looking at the HBU question the wrong way. They ask if the HBU of the vacant lot is to split it off and sell it - but the HBU of the lot alone is not the appraisal problem

The HBU of the house sold with an adjacent buildable lot and a price/value that includes the second lot's contributory $ to teh whole is the question ( since we are giving a MV opinion of a package property) If the improvement contributes so little to the whole it makes sense tear it down and sell both lots as vacant, then that is the HBU. If the improvement contributes more as it stands, then Existing is the HBU.

 

[Tom D]

If you all were on a state board, not sure how this case would go. But the hearing, it would be worth the read.
I would be scared standing in front of yous. Very deep thoughts here, but i got a confused look on my guilty face.

 

[J Grant]

Think of it this way: in a grocery store, you can buy two apples separately; each apple costs 50 cents. You can also buy two apples as a package wrapped together. The price for two apples sold in one package is 90 cents

You are asked to value two apples as sold together, not each to value each apple separately. Clearly, the store has a reason that it sells two apples together at a discount - maybe they sell a lot more of them that way, or they over priced the single apples at 50 cents each.

 

[Mark K]

It's not really that difficult. If your HABU analysis concludes that the property should be split, you call your Client explain the situation and ask them if they want it appraised as a whole or as if split. If they want it as a whole, then you are providing value in use.... and it's a 3 family property. However, I would bet $5 to a doughnut, that your HABU analysis could go either way.

This concept escapes a lot of residential appraisers that have been raised on and rarely, if ever, wanders away from a F/F form. They hang their hat on the "this is what the client wants" mantra, ignoring basic appraisal principles and standards.