Updated almost 5 years ago on . Most recent reply
Comps on duplexes where there are no other duplexes on the area
Hi,
I found a duplex property, but the only comps in the area are other single family homes. It looks like someone may have taken this home and turned it into a duplex in the area. Do I use the comps from homes with equal square footage, bedrooms, etc. to arrive at comps? Thanks.
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Mary C Carter, turning a house into a duplex does not make it legally a duplex. Have you confirmed this is a legal use of the property? I ask not because building department will come knocking, but the appraiser will look at how the property is actually classified in zoning. If it is still zoned single family, your single families are your comps.
Per Wenda's response, which can give a good idea, assuming finishes are comparable to the single family comps, I believe the buffer he is implying is a reduction to your value, not an increase of 10-15%. In my market, my duplex sold for between 25-30% less than comparably sized single families.