Heat/cooled Area Attached To Rear Of Detached Garage

[Debra]

Greetings,

I'm working on a property that has an attached garage, a detached garage with lean-tos and a heated/cooled area (about 300 sq. ft.) attached to the back of the garage that has a heating/cooling unit in the wall. You can enter through a door at the back of the garage or a side door. It is one room with quality equal to main dwelling with a small bathroom but no kitchen (an extra sink with small counter but no stove or refrigerator). It's not lived in 24/7, doesn't have a separate meter, doesn't have stove or refrigerator. Thus is a Rural property outside of any city limits. There are no comparables for this-none. There is a comparable with an attached and detached garage but not an area on the back like this. Any value? or? how to handle this area in the appraisal report. It's for a bank-not FNMA or HUD. Maybe.....No value that can be definitively determined by the market and no known way to search in local MLS for such an area took the area into consideration toward the Final Value Estimated? Thanks!!!

 

[Terrel L. Shields]

There are no comparables for this-none.

There are always comparables, either back in time or further afield. Not necessarily good comps, but something. Value the detached separately, cost approach reverse engineer comps with outbuildings. Ask brokers what they think. Any functional (overbuilt) issues probably lie in detached building. It's worth something unless a tear down. depreciated cost less functional. In my market straight line depreciation less 50% (the light-bulb rule) often falls within the range any sale of dwelling and outbuildings indicates. PS- not GLA or adu. man cave shop?

 

[Tim The Enchanter]

Kinda sounds like a lean to shed with no notable value.

 

[Terrel L. Shields]

Land value +- $30000.rest is to shop with apartment. extract value. Rural shops contribute value.

 

[Tim The Enchanter]

Heated and cooled, oops missed that bit.
Still don't know you can pin down an adjustment number, if any.
But, maybe. Roll the bones see what they say. It is Friday.

 

[Slappy]

Think about matching the utility of the structure. We know it cannot be GLA. Assuming no permit also limits how much value the market would accord this area. I would also look at enclosed patios / "florida" rooms for possible matches.

 

[Michigan CG]

I would describe in my report what utility this area provides and the potential uses of the area. I would not include a comp that is not comparable just to show something that really isn't similar. What utility does it provide? I could be a man cave, a workshop, a sewing room, a kid play area, a workout room, a storage room. That do all those things have in common with your additional space in terms of utility and what would be an ample SUBSTITUTE for this additional garage area?

I would say the UTILITY provided is similar to finished basement area as a finished basement area can provide similar functions as the added area in the back of the garage. I would provide detailed narrative in my report and might be inclined to adjust similar to finished basement area OR I might decide to not make an adjustment and address the situation in the Reconciliation of Value.

 

[Dublin ohio]

Since you are in a rural area. Have you looked for outbuildings with a finished area inside. I run into quite a few in rural areas. An outbuilding with a small office type space with a 1/2 or full bath is not uncommon for me. Some times they are a small man cave or workout room. A lot of them are used for home based business purposes. Something like that might be considered a reasonable proxy

 

[Tom D]

maybe an enclosed patio to keep the stips away. some of them as very nice, as we all have seen. probable was for one of the kids, or parent. my 22 year old would like that a lot.

 

[Deleted member 130081]

It is probably priceless for a couple who fight all the time but refuse to get divorced, but that would be value in use. Sounds like a nice add-on to a garage to me, likely no more functional than an enclosed porch.