Appraisal of Two-family used as One-family

I’m in the same situation.  The last appraisal I had done appraised it as a 2 family, but docked me some $$ from the total appraisal as the “cost of kitchen replacement”.  The layout of my building remains the same as it was when it was a 2 family though, so perhaps that made the decision easy for the appraiser?

overherhead

in Roofers 12 years and 8 months ago

3

Please log in, in order to post replies!

3 replies

Newest Oldest

astorian | 12 years and 8 months ago

string(1) "1"
object(WP_User)#5051 (8) {
  ["data"]=>
  object(stdClass)#5076 (12) {
    ["ID"]=>
    string(5) "44242"
    ["user_login"]=>
    string(8) "astorian"
    ["user_pass"]=>
    string(34) "$P$BGMjsxof33GUhsna2aGSIp7tWROeWC1"
    ["user_nicename"]=>
    string(8) "astorian"
    ["user_email"]=>
    string(22) "jenknestrick@yahoo.com"
    ["user_url"]=>
    string(26) "/forums/users/astoria2010/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:15:50"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(8) "astorian"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(44242)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Does anyone have experience with appraisal (for a mortgage) of a legal two family used as a one family? Would the appraiser likely go back in time to find similar scenarios, or use recent 2fam or recent 1fam?

mousta | 12 years and 8 months ago

string(1) "1"
object(WP_User)#5052 (8) {
  ["data"]=>
  object(stdClass)#5053 (12) {
    ["ID"]=>
    string(6) "176810"
    ["user_login"]=>
    string(6) "mousta"
    ["user_pass"]=>
    string(34) "$P$BPNxZ3fVA1b6hZnlJeGU83hDk/q96S."
    ["user_nicename"]=>
    string(8) "mousta-2"
    ["user_email"]=>
    string(16) "mousta@gmail.com"
    ["user_url"]=>
    string(28) "http:///forums/users/mousta/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:25:49"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(11) "housepoorer"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(176810)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Is there a C of O or is it just designated 2 family by dept of finance? Depending on the appraiser/underwriter it could not matter at all or matter a lot. Chances are it won’t matter. It’s pretty common in nyc that houses are designated one way and used another. As long as it is down and not up (i.e. a 2 fam used as 3) I doubt it would be an issue.

mortgagepro | 12 years and 8 months ago

string(1) "1"
object(WP_User)#5056 (8) {
  ["data"]=>
  object(stdClass)#5050 (12) {
    ["ID"]=>
    string(6) "176946"
    ["user_login"]=>
    string(11) "mortgagepro"
    ["user_pass"]=>
    string(34) "$P$BIapD2133mdcyoC4s3n0WuO3baxZ4h/"
    ["user_nicename"]=>
    string(11) "mortgagepro"
    ["user_email"]=>
    string(28) "adamr@southshoremortgage.com"
    ["user_url"]=>
    string(52) "http://www.brownstoner.com/forums/users/mortgagepro/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:15:50"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(11) "mortgagepro"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(176946)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

I have found that each lender has their own opinion to this question and it is always important to know up front how to address it so you do not get tripped up. It really comes down to appraising the property based on its** current best use** and have it appraised accordingly. The first question is “how many electric meters are there?”.  I recently had a legal 2 family being occupied as a one family but the layout was closer to a 2 family (with the exception of only one kitchen in place) and it was appraised utilizing Form 1025, which is a multi family appraisal.   If the property now has one electric meter and primarily resembles a single family, the appraiser would be asked to appraise as best use and most likely appraise on Form 1004 as a Single Family.    I alway review this with my respective Underwriter/Lender prior to make sure we do not hit any bumps. -Adam Roberts  South Shore Mortgage  631-956-0111 x218  adamr@fast2fund.com   .