11:36 AM 02/19/2013
looking at buying a legal two family home which is currently being used as one family. mortgage broker is telling me to add a kitchen back in so there are no issues with the appraisal coming back to match the c of o (2 family). how crazy do i have to go with adding a "kitchen"?
what constitues a "kitchen" in the eyes of an appraiser? i read somewhere that it's just a stove and cabinet? is that true?
Adding a kitchen? That shouldnt effect the appraisal...normally you remove a kitchen if its 2 fam being used as 3 fam. If you are to add a kitchen it shouldnt be you the buyer to do it, it should be the seller. What happens if god forbid something goes wrong and you dont get the house you just put a kitchen in, no matter how cheap it is you're still going to lose. It should be fine as long as there is a gas line and sewage line I dont see why you'll need an entire kitchen in there. Makes no sense.
12:29 PM 02/19/2013 | 1 Votes
This happens often, and yes you do need to at least give the appearance of a kitchen and that means stove and sink. I have known people who have had to buy cheap applicances and cabinets on Craigslist just for the appraisal - and they were the buyers! But, you do not need to hook anything up. The appraiser is not going to turn on the stove or check that the sink is working since those things can legitimately be disconnected in an empty house pending sale.
4:34 PM 02/19/2013 | 0 Votes
This sounds strange to me... our house is officially a 2-family although it is obviously being used as a 1-family. It was never suggested we needed to make it look like a 2-family. We don't, however, have a C of O so maybe that is the reason it was not an issue for us. I would get a couple more professional opinions to verify the right course of action in your scenario.
4:54 PM 02/19/2013 | 0 Votes
My house is in fact a 2-family gut renovated as a 1-family w/ a 2-fam C of O in place when I bought it. We did not need to have a second kitchen in for the appraisal or mortgage or anything. Never heard of anything like this.
5:01 PM 02/19/2013 | 0 Votes
Make sure there is an actual CofO. The DOB lists many building on their records as two families that have no c of o and are not really two families.
are you going to use the house as a one family? if so, ask the bank to appraise as a one and it to be sold as a one family.
It is not always the case that a two will appraise for more money or that it will resell for more money that a one family. With the way building codes are moving (sprinklers and such), a one family is more desirable in my opinion.
If you need to use it as a two to support owning it, then that is a different story.
9:14 AM 02/20/2013 | 0 Votes
I agree with Eme - I own and live in a 2 family used as a 1, and just had an appraisal for a refi. The appraiser knocked the amount down $12k for "the cost to reinstall a second kitchen". I think it's definitely worth $100 at ikea for a small sink cabinet, and a used stove. Or perhaps even a hot plate would suffice, I don't know what the actual full requirements are.
10:34 AM 02/20/2013 | 0 Votes
Sounds like your mortgage broker doesn't want to think or do any work at all, and is assuming the appraiser is a moron as well. If the appraiser cares about anything, it's whether the room designated as the second kitchen has the appropriate rough-in for plumbing and gas, not the $200 worth of crap from Ikea sitting on the floor. You price/purchase/finance a house based on its current condition, and the second kitchen as a % of overall value is not likely to make/break the mortgage approval.
Find a broker who understands this - there are plenty out there who do and can get you the $$ without you having to commit fraud.
1:13 PM 02/20/2013 | 0 Votes
My understanding is that you get the best rate financing a single family, so wouldn't you be better off applying for a single family loan and get it appraised that way, rather than applying for a 2-famly loan and putting in a kitchen just for the appraisal? It's definitely possible to do this even if the CofO has 2-family if it's used as, and appraised as a single family.
I agree with wyckoff. You may want to shop for a better mortgage broker.
5:24 PM 02/20/2013 | 0 Votes