Two parcels - one deed

[Bamba]

I need help with this assignment please! I searched the forum and I could not find the same scenario...I'm not sure if it should be done as one appraisal or two separate appraisals...

Two parcels, each with building on it, each building is a two unit dwelling, all is in one deed. Taxes are assessed on each building separate (since there are two parcel numbers) and each building has its own street address. These are two rowhouses next to each other. Parcel numbers are for 123 ABC Rd and 124 ABC Rd, but deed reads 123-124 ABC Rd.

Is it two appraisal report for each of the two units or one appraisal for the four units?

Help from my peers is greatly appreciated!

 

[Dirty Harry]

I need help with this assignment please! I searched the forum and I could not find the same scenario...I'm not sure if it should be done as one appraisal or two separate appraisals...

Two parcels, each with building on it, each building is a two unit dwelling, all is in one deed. Taxes are assessed on each building separate (since there are two parcel numbers) and each building has its own street address. These are two rowhouses next to each other. Parcel numbers are for 123 ABC Rd and 124 ABC Rd, but deed reads 123-124 ABC Rd.

Is it two appraisal report for each of the two units or one appraisal for the four units?

Help from my peers is greatly appreciated!

My first question would be: Can they be sold separately? If so, two separate appraisals. If not, well you know the answer...

 

[DWiley]

Is the applicable value standard Market Value? If so, what is the HBU?

What is the intended use?

One must answer these questions before answering the question in the OP.

 

[CBBoston]

Add to that can two conforming lots under current zoning be created. There may be two assessors parcel numbers or legal decriptions but that doesn't always mean they can be seperated.

 

[Jo Ann Meyer Stratton]

There could be many reasons there are two assessor's parcel numbers that have nothing to do with highest and best use or intended use. The single deed may or may not have been based on any thing that applies to those items either. A deed may cover one or multiple properties that are not even contingent to each other, in the same county or state for that matter. Assessor's parcel numbers are for book keeping functions in regards to taxation only and not due to other factors. Things like boundary lines between cities, school or special districts can create several parcel numbers. A difference in ownership--for example one parcel belongs to William and Mary Smith, the other parcel belongs to Bill and Mary Smith (who happen to be the same couple) but there is a difference in how the title is held. Or they both belong to William and Mary Smith, but one site is a Joint Tenancy deed and the other is a Warranty Deed. etc, etc, etc, etc

 

[PropertyEconomics]

My first question would be what is your scope of work?

For what its worth, simply because they can be sold separately (assuming they can) does not automatically make this a two report assignment. The reverse would also be true .. they could be sold together.

Understanding the purpose of your appraisal and the scope of your assignment is the first understanding that you must have in order to perform this assignment. No one here can answer any questions for you without knowing the purpose and scope of your assignment first.

Best of luck to you.

 

[Bamba]

Sorry guys but I am not sure any of the answers shed any light to my dilemma...

Client is not sure if they should order one multifamily appraisal for both dwellings or two multifamily appraisals, one for each dwelling...

You get an assigment to do an appraisal and determined market value for a refinance on property 123-124 ABC Rd. You start doing you're preliminary research and you get two tax records...one for 123 ABC Rd and one for 124 ABC Rd...you search the deed and find one deed for both parcels....where do you go from there?

 

[Couch Potato]

I need help with this assignment please! I searched the forum and I could not find the same scenario...I'm not sure if it should be done as one appraisal or two separate appraisals...

Two parcels, each with building on it, each building is a two unit dwelling, all is in one deed. Taxes are assessed on each building separate (since there are two parcel numbers) and each building has its own street address. These are two rowhouses next to each other. Parcel numbers are for 123 ABC Rd and 124 ABC Rd, but deed reads 123-124 ABC Rd.

Is it two appraisal report for each of the two units or one appraisal for the four units?

Help from my peers is greatly appreciated!

Most likely it is two, two-unit properties you are appraising. being on the same deed merely means they were purchased in a single transaction. A person can convey a property in Los Angeles and another in New York on the same deed if they choose to do so; it would not combine the two properties into a single unit. The fact that the two properties are next to each other and on the same deed does not make them one in most circumstances. Nothing you describe indicates they would be one property.

You should check with your local planning/zoning office to see if there are restrictions on the sale of the properties.

 

[Frederick]

I have the same type of assignment however mine are both single family residences.

They are deeded together and contiguous. I was informed that they both feed off the same public sewer connection. I think the sewer issue can be resolved easily.

They each have their own block and lot and assessor's parcel ID and are valued separately by the municipality and each receive a separate tax bill.

I observed them from the street and saw a large dwelling and a much smaller cottage sitting side by side with each having a driveway. There is a limited amount of space between them.

Highest and Best Use analysis with the limited data available suggests that they be valued as separate parcels.

I told the client that my preliminary investigation and curbside observation suggests that they will need two separate appraisals however a survey may reveal a significant encroachment that could change things or I may find that utilities are more interconnected than they appear to be.

If I end up doing two appraisals I will include extraordinary assumptions that each property can function separately in case there are conditions which are not apparent and readily obserable.

Everything is cool until the owner tries to sell one of them and then the potential for legal issues heighten.

Independent functioning in the highest and best use and non-significant encroachment seem to be the most critical factors. A discussion with local governmental officials to ascertain their opinion on potentially selling the two parcels separately is also in order.

 

[Bamba]

Most likely it is two, two-unit properties you are appraising. being on the same deed merely means they were purchased in a single transaction. A person can convey a property in Los Angeles and another in New York on the same deed if they choose to do so; it would not combine the two properties into a single unit. The fact that the two properties are next to each other and on the same deed does not make them one in most circumstances. Nothing you describe indicates they would be one property.

You should check with your local planning/zoning office to see if there are restrictions on the sale of the properties.

I just did some more research on it and the only deed that I have access is a warranty deed to trustee..I don't have the deed from when they were purchased, so you're probably right...