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Updated about 2 years ago on . Most recent reply

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255
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211
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Alex S.
  • Investor
  • Metro East of St. Louis (Illinois)
211
Votes |
255
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Appraising side-by-side 4-plexes (income or comp approach?)

Alex S.
  • Investor
  • Metro East of St. Louis (Illinois)
Posted

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

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600
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508
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Brad S.
  • Real Estate Broker
  • Pasadena, CA
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600
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Brad S.
  • Real Estate Broker
  • Pasadena, CA
Replied

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.

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