Updated over 3 years ago on . Most recent reply
Two house one property appraisal
How is aprasal done with two houses on one property. First house is the original and is a 2/1. Second house is a two story garage that was converted into living quarters and just recently remodeled 2/1. The houses are divided by a yard with a fence in the middle. Both are being used as rentals. There are no similar comps for this specific property type. How would a appraisal be done for this property?
Most Popular Reply
If there are no comparables you will get a VERY low appraisal. Highest and best use is probably single family if there are no duplexes or house and a garage conversion within two miles with same square footage, lot size, condition. If the second unit is not permitted and you want a conventional loan or FHA or VA they might condition to tear it down.
Probably if no permits you need to go hard money and won't be able to refinance conventional until the county planning department shows you pulled permits and met whatever they now want to meet code.
There are some exceptional counties with density and high value that grandfather in a conversion done to code in the 1970's called a granny flats.
What does the tax bill show as square footage?