Question:  I have been asked by a private party to a home and a duplex on the same lot.  I called the city and indeed they share the same lot.  The duplex is 1728 SF (I assume 864 for each unit, but the county wasn't sure) the home is 1,040 square feet.  Both were built in 1978.  How am I going to appraise them?  The home isn't exactly an accessory unit because of its size (I think).  How will I have to appraise this?  I am at the point that if this is too damn confusing.  I am going to decline the assignment.  I have never "chickened out" from an assignment, but have had some of the hardest ones in the past 2 weeks and am not sure I want this headache too. thank you for help/advice.

 

Answer:  My answer assumes the current use is the highest and best use.  If all three units are rental units and the motivation for purchase is for the rental income, you have no problem.  As recommended by Dan Picou on the Georgia Appraiser Forum, appraise the property as a 3-unit multi-family complex.  Fannie Mae probably won't accept the appraisal but since the appraisal is for a private party, Fannie Mae should be of no concern.

 

If you determine that the most likely motivation for purchase of the single family residence not for rental income, then the properties will need to be appraised separately.  There is no need for a survey or new deeds.  Appraise each as a physical segment of the whole.   The value of the each segment will require an adjustment for separating them with a survey and drawing new deeds by this will be treated as a hypothetical condition and doesn't actually have to be done.

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