This happens as renters get renter's remorse and see rents going out the window, in this case they seem to be qualified, so lucky you.While it sounds good to ask for a premium so they don't have to move, their appraiser won't see it that way and their financing will be based on the appraised value or sale price, which ever is less!

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What other scenarios would my high bid premium come into play?

Your insurance premium will be higher on the Duplex then the SFH simply because the replacement cost is higher.If you look at Freddie/Fannie... or even Homepath requirements, you'll also find the Downpayment requirements different.

That's why you get the risk premiums / price discounts with foreclosures.That is besides the fact trying to suck every penny of rent out while not paying the mortgage sounds like it is at least at times unlawful.

http://www.biggerpockets.com/forums/67/topics/50209-submetering-gas-for-17-unit-apt-complex-can-EDIT: adding another relevant link:http://www.biggerpockets.com/forums/311/topics/53627-what-does-two-meters-and-one-boiler-mean-

While Bill is probably correct about existing units for less - there seems to be a certain demand for brand new units - with those people willing to pay a premium.

For those that believe loans should be non-recourse: From a lender's perspective, what you are saying is that for example if the property burns to the ground and the insurance doesn't cover it, either because borrower didn't pay the premiums or got a landlord's policy when you should have gotten a builders risk policy, the lender should take the hit.

EDIT: One thing to add is that even though in your case it is the School District initiating the appeal, their friends from the county and the local municipality are also allowed to participate, and might help out the School District since they all benefit if your assessment rises.

We need to onvince them that our houses are worth the premium.