Appraising side-by-side 4-plexes (income or comp approach?)
I want to put in an offer on two separate 4-plex buildings that are adjacent to each and owned by the same person, but on separate parcels.
Will the appraiser value it on the income approach or the comp-based approach?
I want the income approach, because that will be much higher in my area!
Most Popular Reply
Appraiser here
I would use the income approach in the report, but rely mostly on the sales comparison. Income/GRMs tends to vary widely in 2-4 unit properties and is not very consistent in my markets and therefore, typically doesn't seem too meaningful in my 2-4 unit reports.