As a certified licensed appraiser, I can perform multi-family appraisals up to and including 4 units. Once the building goes beyond 4 units, it is considered a commercial appraisal and a commercial appraiser would need to complete it. If you are a landlord who wants to sell a multi-family or you are thinking about buying a multi-family, knowing the fair market value is a critical component.
There are three approaches in valuing a multi-family property. The first and most important is the sales comparison approach which is designed to compare the subject property, or property being appraised, with other similar dwellings that have sold recently. The second is the income approach which is used for income producing properties. Finally, the cost approach is typically used for new construction or unique properties.
This is by far the most common approach to determine market value in both residential properties and multi-family dwellings. It compares recent sales of similar properties to the subject property. When appraising multi-family properties, I always try to select comparables with the same amount of units as well as bedrooms. These are not always available and therefore adjustments will be made for bedroom and units when they differ.
Multi-family dwelling may have a difference in bedroom count which can warrant a bedroom adjustment. This is because the income for these units is often based on the number of bedrooms and each bedroom adds value.
In the example below you can see bedroom adjustments are made for the third comparable which has 6 bedrooms. You will also notice the adjustment by the date. This is because the market has appreciated since the spring pause due to COVID-19. A market study which was included in the report shows support in making adjustments for the appreciation rate.
This approach as mentioned, is used for income producing properties. For properties that have 2-4 units, it is used in conjunction with the sales comparison approach to determine the fair market value. The income approach takes into account the market rent for the subject property and factors in the gross rent multiplier to calculate market value. The gross rent multiplier is simply the rent roll of that property divided by the sale price.
In addition to using the aforementioned calculation, the report form also calculates value per unit, value per room, value per gross building area, and value per bedroom.
In a multi-family appraisal, the appraiser has six values to consider in the reconciliation to determine fair market value. These include the sales comparison approach, the value determined by the rent, and the four values in the previous paragraph. Although this is an income producing property, more weight is still given to the sales comparison approach.
Having all these values is helpful in determining fair market value. Tt could pull the value up or down depending on how the numbers are trending and how much weight the appraiser is giving to each of them.
In general, as a NJ home appraiser, I give very little weight to the cost approach. It is not as relevant as the other approaches for the vast majority of the multi family appraisals I complete. It based on the land value plus the cost associated with building it new, minus depreciation.
Having appraised homes in New Jersey since 2002, I have a lot of experience valuing multi-family homes. If you are in need of the fair market value of a multi-family property, please give us a call at 908-233-1337.
Evan from American Realty Appraisals came out to our home last spring to conduct a home appraisal in support of our property tax appeal. He arrived promptly at the agreed time, was very professional and conducted a thorough walk through. We were very satisfied with the results of his appraisal - they were well-researched and accurately captured the features of the home. His appraisal proved to be a crucial element in a very successful tax appeal. I would gladly recommend his services to others.
I was extremely pleased in my experience with American Realty Appraisals. Evan was very knowledgeable and was happy to answer any questions I had. His appraisal was useful in our being able to successfully appeal our taxes. It was worth every penny. He also shared some suggestions on how to shore up insulation efficiency around the house. 5 Star service. thanks!
Evan was extremely helpful in our obtaining a favorable result from our tax appeal and I highly recommend his services
If you want the Do's and Dont's. I would say DO use Evan. It was a very smooth and easy process. He worked around my schedule. His turnaround time was very impressive. Price: He was in line with the other quotes I received. And you DON'T need to worry. I will recommend him and use him again
Prepared the documents to submit for a tax appeal and accompanied me to the tax appeal hearing to present my case. I have used American Realty Appraisals twice and have won my tax appeal each time.
I was appealing my real estate taxes and American Reality did an appraisal on my home. The appraisal went well and as a result the tax appeal was successful and our real estate taxes were lowered.
I was ignoring go through Tax appeal process because I thought it was so cumbersome with very little chance of winning. In this process, I used Evan for a tax appeal. Not only we won but it was very easy and simple process between him and the lawyer. I highly recommend to use Evan, he knows what he is doing!
The tax appeal through you and Lisa Walsh was successful, and you may use me as a reference any time in the future
Evan was great. He was instrumental in helping me to appropriately lower my taxes via an accurate appraisal. I highly recommend his services to anyone in need of an appraisal in NJ.
When the interest rates dropped last year, I decided that it was a good idea to refinance my mortgage. I was recommended to American Realty Appraisals by my mortgage company. They were affordable, expedient, and ultimately put together a very comprehensive report with figures, photos, and local comps. I would highly recommend them to anyone looking for a professional and honest appraisal company.
Evan and his team at American Realty Appraisals are simply the best at what they do. As a mortgage banking professional, I have worked with dozens of appraisal firms over the years and I continually return to American Realty Appraisals when I can for their expert advice and service. I would highly recommend them if you are an individual looking to have your home appraised, or a banker looking to add a high quality appraisal firm to your list of approved appraisers.
Before I went to list my home, I hired Evan at American Realty Appraisals. I wanted an unbiased opinion of what my home was worth. He provided a thorough report that gave me piece of mind and a leg to stand on when it comes time to negotiate. I was also pleased with how fast he turned the report around after the inspection.
I am an attorney in Westfield and I refer all of my clients to American Realty Appraisals. I have worked closely with Evan Siegel for the past two years and I have been impressed with his professionalism, integrity and expertise as an appraiser. Relying on his appraisals, I have been able to negotiate property tax reductions for numerous clients in Union County. I highly recommend American Realty Appraisals for all of your residential real estate appraisal needs.
ARA did a great job of handling my tax appeal. The guidance was spot on and the staff, specifically, Evan Siegel, was professional and knowledgeable. The outcome was excellent and I'm saving a good amount of money on my real estate taxes. Thanks ARA!!
I used Evan for a tax appeal project. It was a seamless operation between him and the lawyer. Zero blips, and we won.
Mr. Siegel performed an appraisal for my home for tax appeal purposes. He was very professional and helped me lower my taxes by 17%. I am quite satisfied with his work.
Highly recommend. Excellent service, professional, prompt. Great result