What is Multi-family

[incognito]

I am reviewing a condominium unit appraisal, and the appraiser has done a good enough job. However, in the neighborhood section, the appraiser has identified 50% One-Unit and 50% Multi-Family. The neighborhood is roughly 50% detached SFD's and 50% attached condominium units.

I have always reported condominium units as One-Unit, and considered multi-family to be apartments or other multi-unit residential buildings or projects (over 4 units) with one owner but many leased units. I looked up as many references as I have, and really could find no good information to see which may be correct.

The latest edition of The Appraisal of Real Estate describes a multifamily residential district as having rented apartments or privately owned units such as coops and condos. Other than that, I can find nothing that may help me determine what is correct. I don't care for the review, it was fine. But I am curious.

What is condo: One unit or multi-family, when filling in the percent land use section in the neighborhood section of the report?

 

[KYLECODY]

Ive heard this one debated before also and couldnt get a concrete answer. I also consider condos to be one unit and multis to be apartment buildings.

 

[Thomas Fiehler]

Most condos in my area are on land zoned for MF use. I typically count them as MF in my breakdown.

 

[PropertyEconomics]

One could easily say that a large condo building is in fact multiple single family homes ... its an interesting debate ... honestly I think it could be aruged successfully either way, but I dont think condo ownership would necessarily equate to multi-family housing as we typically define it but it is definately multiple families on the same "plot" of land.

 

[Mr Rex]

Condos are just a ownership position in a multifamily property. Glorified apartment ownership.

 

[Mztk1]

The Present Land Use is broken down from an appraiser's or lenders point of view, not a zoning officer or builder. For instance, it is SFR, 2-4 family or Multi-. That says to me you answer it from an appraiser's perspective.

Therefore, I look it as if they were subject properties. When appraising a condo, is it a multi-family or single family? When viewed from that angle, it is rather straight forward.

I wouldn't correct anyone for it in a review, because it is ambiguous. But I look at it the same way you do.

 

[panappr]

Condos are just a ownership position in a multifamily property. Glorified apartment ownership.

Case Closed. I've always included condo complexes as multi-family, more than one family living on one lot. It's about density.

 

[CANative]

Case Closed. .... It's about density.

That's about what I was going to post.

This is just one of those boxes on the fannieforms that needs narrative augmentation.

 

[Chris Colston]

It's about the utility of the land in the defined market. I've always considered condo land use as multi-family. I think Henry Harrison agrees in one of his books and so did the instructor in a Fannie Mae course when the new forms came out. The block is asking about land use, and a condo is considered multiple dwellings on the same plot of land.

The ones I like are the reports where the land use is 100% single family and yet the narrative comments indicate schools, shopping and other support services are within the defined market area. Don't know about where anyone else comes from but around here, schools, gas stations, convenience stores, grocery stores, medical offices or any other type of office space, golf courses, fire stations and police stations do not have single family use. I don't know any "market" or neighborhood that is 100% single family without some type of additional land use.

 

[TJSum]

My vote is also multi-family on condos...