Profile picture for jpaul76

What is the market value difference in a single family listing and a 2-unit "live-in" chicago

I am trying to refinance my house.  I live in the first unit and rent the 2nd unit.  My appraiser was unfortunately unable to find any other comparables in my neighborhood where the price is substantially higher due to good schools (North side of Chicago).  There are 3 great comparables down the street, but they are classified as Single family homes and the appraiser wouldn't use them.
  • November 30 2010 - North Center
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Answers (6)

Because the 2 flat is an income producing property it cannot be classified as a single family home. I do find it hard to believe that the appraiser couldn't find any comps on the north side of Chicago. This is unfortunately one of the problems with the HVCC and the way that appraisals get ordered. In many cases the appraiser is not familiar with the market that he is working in because of how they get randomly chosen. That being said though if you know of or can find some comps in your area (maybe thru a realtor) you may be able to ask the appraiser to consider them. I am also curious if you are doing an FHA or conventional loan.
Good luck with your Refi
Greg

  • December 01 2010
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Profile picture for Matt Laricy
You cant compare a 2-4 flat to a single family house. An appraiser wont do it. But I agree, if they cant find one in 6 months, then they should go back a year, or if they must expand the area and make an adjustment in the price. This is a common way they do it in the commercial field. You could always get another appraiser as well.
  • December 01 2010
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Profile picture for jpaul76
Thanks,
I will be shopping around.  If you have some leads, I would greatly appreciate them.
  • December 01 2010
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Profile picture for Evelyn S. Fred
Hi JPaul,

Ask your lender if in light of the fact that there hasn't been any recent sales, within the last 6 months, can you go back to 12 months.

Granted the market can change daily, but obviously the sale of multi units is not that common in your area.

Another possibility is to consider talking to another lender that may be more flexible.  I can recommend a few if you wish?

Good luck!
  • December 01 2010
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Profile picture for jpaul76
The appraiser was hired through chase for a Chase refinance.  Chase needed 5 comparables sold within the 6 months!! 2 of them were in the neighborhood, but the other three were outside of the Bell school district... which I understands add some value to our home.  Plus, these other 3 were fire sales, and we're only trying to do a REFI. 
When I researched to find 3 more to re-evaluate the appraisal, I could only find single family homes which she would not accept as comparables.
Thank for answering.
  • November 30 2010
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The difference is apples to oranges, but I find it very hard to believe that an appraiser cannot find comparables for a 2 flat in North Center!! You do not need to find other 2 flats that also have an owner occupant. That is silly and I question the qualification of the appraiser who was looking for that. I can do a CMA to give you an approximate value of the property.
You said 'my' appraiser. Did you hire one on your own or was that the one hired by the bank? Something does not sound right.
  • November 30 2010
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