Which form to use?

[Lawrence Silverman]

I am appraising a property where the home itself it owned fee simple, but once you walk off the porch it is all condo ownership. I would assume it should go no a URAR, just discuss why there is no lot size , and fill out the pud info. However, we all know what happens when we assume, and thought I would see if anyone had another thought. Thanks for the help.

Larry Silverman

 

[Mountain Man]

You can do a condo on a URAR (just check the little condo box on top of first page) or on the Single Unit Condo form. Ask the client what they need.

 

[Ben Vukicevich SRA]

Lawrence,

I would check the project documents to be exactly sure of what you're appraising but...it sounds like it's a footprint unit to me. I've only seen them in PA (Maybe if Ray Ohler is around he can help you out but I haven't seen him posting lately. Ray where are you???)

Basically, a footprint unit is just that, only the land under the unit is owned, technically making the project a PUD-some people just don't like the word condo so they came up with this "animal," I guess as a marketing tactic. In all other aspects, it looks like a condo because once you step out the door, everything is owned by the association.

If it is a footprint unit, you can do it on a URAR. Just list "Footprint" in the lot size box. If it is a true condo, it goes on the condo form unless it's an FHA, then you have the option of the URAR or condo form.

As an aside, you could call the association/management agent for additional info. Or, if you're in a hurry, why don't you go to the HUD appraisers webpage and see if it is listed as an approved PUD or an approved condo. That may be of some help in nailing it down. Plus you would have an FHA approval number to list in the report which makes some underwriters really happy to see, even if it is a conventional loan.

Ben

 

[Lawrence Silverman]

Thanks for the help.

 

[Ray Ohler]

backed up with a lot of NON-PAYING BS. Have a feud going on with the state which is probably going to the ASC and State Attorney General's Office. Have to dot my I's and all. Anyway, it seems like you pretty much covered what I would have come up with.
Lawrence, what it sounds like is exactly as Ben described it, a "footprint" lot in a PUD. Get a legal and TRY to get HOA documents and make sure of what you have before you decide which form to put it on. Hopefully, you have three sales in the subject development (assuming its not new construction) to use as comps.

 

[Richard Carlsen]

Lawrence

This sounds like a site condo. We have lots of them up here in Michigan. A cheaper and faster way to develop property and get around the long, long platting requirements.

Site condos up here are treated interchangeably with platted sites, as there is no market difference. Both are totally market acceptable.

Ownership is considered fee simple.

I usually use a 1004 and if there are no major common elements, use the cost and sales data approach with the income approach being N/A.

If there are lots of common elements such as parks, common land, beaches, etc. then the cost approach is tough to do unless you have good site sales data that will show the added value of the site and the common elements. If you do not plan on doing the cost approach, a 2055 is a good form to use.