We are seeing “Site Condos” more often than ever lately. This is b/c many cities, like Berkeley, will not allow small lots to be split into multiple parcels, but they will allow multiple units on a single lot.
B/c of this many developers opt to convert small lots into “site condos” or condo units that are completely detached from other buildings. Owners are 100% responsible for their individual units, and the units look and feel like single family residences. This makes them more valuable and marketable than traditional condos.
Another big advantage to site condos is that lenders allow appraisers to use single-family residences as comps, making site condos much easier to appraise.
Site condos also do not incur the “condo hit” to pricing/rates; rates are the same as they are for SFRs.
Site condos still require a master insurance policy and an HOA cert just like with any other condo loan.
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