Which form to use?

[Bruce Bugno]

I recently appraised a main home and guest cottage on a 2-4 family form since both were income producing. Can we use a URAR form to appraise a situation like this? Can we appraise the main home and add a line item for the guest cottage, attempting to have all three comps with guest cottages as well?

I have an underwriter wanting me to put this on a SFR URAR. They won't accept this on a 2-4 family form. Why would they want me to switch forms if the 2-4 family is more detailed? Any ideas?

 

[Pamela Crowley (Florida)]

I don't know why they would want you to switch forms as it seems that what you've already done is the best form for the subject.

Otherwise, yes, it can be done on the URAR with a large addendum explaining the Income Approach.

Charge extra for the change!!!! Next time, get it in writing from them what they form want it on.

 

[Scott Warner]

What is the zoning & what have your four tests of highest and best use revealed? Is that second dwelling/cottage permissble under current zoning?

 

[Pamela Crowley (Florida)]

Thanks, Scott. I was 'assuming' that part.

 

[Bill_FL]

Yes it can be done on a URAR. Do you have comparable homes with guest cottages. In some areas these are very common.

As top the why, because a 2-4 family investment property has a very different LTV and rate package than a SFR.

 

[JeffMann]

I am willing to bet $0.25 hard currency, coin of the relm, that the change in form will not be the last you hear on this assignment. 8)

 

[Bemis Pownall]

Call zoning, is it legal, what is the grandfather clause if there is one.

 

[Mike Garrett RAA]

Yes you can do it on the URAR, most likely they want to do this as single family residential rather than income property. Different LTVs as previously stated. The secret is to consider it as a "guest cottage" not a rental unit.

Now that said, if both the house and cottage are rentals you have an income property and it should be done on the small income. It is what it is!

 

[Restrain]

I do these on URAR commonly. There are areas that it is uncommon NOT to have these quarters. These were originally carriage houses or servants quarters as the homes were the upper crust areas. I use the Basement line as basements are as scarce as hen's teeth in this area.

Roger