Two- to Four-Family Residential Appraisal Guide

Updated August 17, 2026. Educational information only; not legal, tax, lending, engineering or accounting advice.

Verify unit configuration and use

Document kitchens, baths, bedrooms, entrances, parking, utilities and common areas. Public records may not match current occupancy.

Provide permits, certificates or zoning information when available. The appraiser is not the code authority but must analyze observed use and available legal-use evidence.

Collect complete income documents

Provide leases, rent roll, concessions, security arrangements, owner-paid utilities and vacancy history.

Distinguish family or below-market arrangements from arm's-length leases. The appraiser also researches market rent independently.

Inspect building systems and every unit

Unit condition may vary while roofs, porches, boilers, electrical and plumbing affect the entire building.

Inaccessible units can materially limit analysis. Coordinate tenants and access before the appointment.

Develop sales and income indications

Comparable sales reveal price behavior; income analysis considers market rent, vacancy, expenses and investor yield expectations.

Gross-rent multipliers are useful only when derived from genuinely comparable properties with similar utility and expense responsibilities.

Stabilize expenses and reconcile

Actual expenses should be organized, but one year's low maintenance or owner labor may not reflect typical operation.

The final reconciliation weighs data reliability, unit similarity, location, condition and the motivations of likely buyers.

Assignment planning checklist

• Verify unit count
• Provide access to each unit
• Supply leases
• Supply rent roll
• Identify owner-paid utilities
• Provide zoning documents
• List capital improvements
• Organize expenses
• Explain concessions
• Identify mixed-use areas