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izzy · Guest

Could anyone enlighten me as to the differences, if any, in property value between a PUD vs Townhome community. There's a clear difference b/w a single family home and a towhome, in that you own the land, etc... but how does a PUD compare? It's a detached single family residence, yet still part of a complex, with HOA, etc. I'm looking at buying a townhouse, and have come across some very nice PUD unts that are larger, have larger patios/yards, and are about the same price. I'm trying to figure out if there are negative aspects to PUDs.
Any information/advice would be greatly appreciated.
Thanks

nemmar · Site Admin

Izzy,

As will all appraisals and market value approaches, a PUD (Planned Unit Devlopment) is evaluated and appraised just like any other property. Meaning that all factors (both positive and negative) MUST be considered for determining the value. So in comparing a PUD to a Townhouse the appraiser would try to use sales comparables in their report that were PUD's if he/she was appraising a PUD and Townhouse sales comps if he/she were appraising a Townhome. There are positive and negative aspects to ALL properties, not just PUD's or Townhouses.

For PUD's the appraiser must also consider the following definitions and info:

- PLANNED UNIT DEVELOPMENT (PUD): A PUD is defined as a mixed-use residential development of single-family dwellings in conjunction with rental, condominium, cooperative or town house properties. A residential development should be processed as a PUD if it has these minimum characteristics:
> A homeowner association that holds either title in fee or a lease of prescribed length on the common area
> Mandatory membership of all unit owners (or units) in the association
> The right of all unit owners to participate by vote in the operation of the association
> Lien supported assessment of the members to meet the association's budgeted operating costs (special assessments may be handled differently)

- A PUD is a project that includes common property and improvements owned and maintained by an owners' association for the use and benefit of the individual units in the subdivision.

- PLANNED UNIT DEVELOPMENT — (PUD) A term sometimes used to describe a planned development. A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning.