A single-family residence is a freestanding residential structure designed and used as a dwelling for one household, situated on its own lot with no shared walls or common ownership interests. It is the most common property type in residential real estate and the standard collateral basis for most mortgage lending.
In appraisal practice, single-family residences are typically valued using the sales comparison approach, with support from the cost approach when warranted. Clear identification of property type matters — structures that appear to be single-family but contain accessory dwelling units or unpermitted additions may require additional analysis and disclosure.
For loan originators, confirming that a property meets the definition of a single-family residence under applicable program guidelines is an early and essential step, as misclassification can affect loan eligibility, appraisal requirements and investor delivery.