Duplex, Triplex, Fourplex Appraisal Services
There are many challenges when appraising a duplex, triplex or fourplex home. In places like California where real estate is so expensive. A seller needs to work with a seasoned real estate appraiser who knows how to get the best valuation possible. Challenges like occupancy of these properties is one thing that needs to researched. Unlike a single home dwelling where the buyer is probably purchasing the home for his personal dwelling, these types of properties are often purchased as an investment with other families living there. Valuation now becomes an essential part of the equation.
Using The Market Approach
Usually, a seasoned real estate appraiser will use the market approach when determining the Fair Market Value for these properties. This means looking at the comps for the area within the last year and within a 1 mile radius. This will help the appraiser see what other properties are selling for in the area. But the appraiser must also look to see if the units carry more bedrooms, bathrooms or have basements or other features that may add to the value of the units as a whole.
The Income Approach
The real estate appraiser may also look at the individual units if there are no reasonable comps for the area. The appraiser will physically be able to see if the area is run down, downtown with more activities or in an affluent area with lots of coffee shops and interesting places to shop. The upkeep of the area will add or detract from the property and unit value. Obviously if you are buying a 2, 3 or 4 unit will also add value depending upon the size.
These are some of the challenges of a duplex, triplex, or fourplex appraisals. Make sure that your real estate appraiser understands these challenges and knows how to prepare the best written appraiser report that will give you the best Fair Home Market Value possible.