Residential

Valuation 2 to 4 units

Service

Rental

Rental buildings with 2 to 4 units

The appraisal of a building with 2 to 4 dwellings is different from the appraisal of a single-family residence, and also from the appraisal of a building with 5 or more dwellings. In fact, we need to consider not only rental income, but also whether the property is held for pure investment or by an owner-occupier. Although this should not impact value, we can sometimes detect certain variances in the market.

Have your income property appraised
The valuation methods used by the experts are the cost method and the comparison method. Many people would be tempted to believe that the income method is applicable to this asset class, but don’t be surprised if it isn’t applied, as the application of this method requires more sources of income to enable a more efficient market analysis. As mentioned above, owner-occupiers don’t buy 2 to 4-unit buildings in the same way as property investors. We could therefore say that the valuation approach for this type of building is a hybrid between the valuation of single-family dwellings and buildings with more than 5 units.
There are many reasons why you might want to hire an appraiser for your 2 to 4-unit building. That’s why we always recommend talking to your expert, so that he can ask you questions about the purpose of such expertise.

Here are a few examples: 

As you can see, the reasons given above are many and incomplete. We can guide you through the vast world of appraisal. It’s important to feel comfortable talking to your expert, as he or she is bound by professional secrecy.

Frequently asked questions

FAQ

For duplexes and triplexes, we have to visit all the units. In the case of four- and fiveplexes, we always recommend a full tour of the building to get the best possible idea of its condition. However, if it is impossible to visit one of the units, this will not prevent the appraiser from doing his job, while adding limiting conditions to his appraisal. Don't forget that some financial institutions may also require a complete building inspection.

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