When a Garage Apartment is a Duplex

When I hear the term duplex, I envision a single building that looks like a house with 2 front doors and 2 garages - basically a house divided down the middle to create 2 dwellings. They share a common wall. Sometimes they are the same on each side and sometimes one side is smaller than the other.

When I was in college, I lived in a duplex that was 2 stories with one apartment on the ground floor and one on the second floor but often they are single story side-by-side.

Some buyers like the idea of buying a duplex and living on one side while leasing out the other for income to help pay the mortgage. Sometimes both sides are rented.

Apparently, that's not the way Freddie Mac sees it and the difference can effect the buyers loan and how an agent lists or searches for a property.

My first experience with this definition happened when I listed a house with a walk-out basement. When the homeowner purchased the house, the seller had owned it as a single-family home and the appraiser wrote it as a single family home with a basement apartment. My seller had used the apartment as a guest house. The apartment had the potential of a space for a home business, a place for a college student, a place for an aging parent or a guest house. I listed it as a home with a walk-out basement apartment and the buyer almost didn't get financing approval because the appraiser said it was a duplex according to Freddie Mac and required a loan based on investment property. As much as I didn't agree, I could see the point because the house and apartment was attached.

Next I had a buyer who was purchasing a house with a garage apartment. A detached garage apartment. That's something that is somewhat common in older areas of Austin. They are usually used as guest houses, for an adult child or rented to college students. Freddie Mac said it was a duplex.

And according to Freddie Mac a duplex is defined as having separate meters.

The big question for the future is how to list a home with an apartment and how to search for a home with an apartment because if they are listed as duplexes, most buyers and agents won't think to search that category.

I want to be your REALTOR. If you are thinking of selling a house, give me a call. I'm happy to answer any questions you may have about the seller's disclosure or other matters involving selling a home. 512. 589.7988.

If you are interested in finding out more about Austin, living in Austin, real estate or buying or selling a home in Austin, I want to be your REALTOR. And I appreciate your referrals as well. Call or email to find out how I can help you. 512.589.7988 or robin @robinscottrealtor.com

Austin, Texas Homes for Sale. Robin Scott, BROKER Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.