Opinions For An Adu?

[Joe Flacco]

 

[gregb]

Which is why I asked the OP to post the subject's location and governing municipality.

The OP is licensed in the city of Walnut Creek. His subject property could be any where.

 

[Elliott]

I went to a afternoon seminar and an appraiser gave a short talk about ADUs. His data, from the Portland market, indicated to him $50,000 differene in ADU compared to his selection of data that didn't have ADUs. He used a median sales price comparison and ran a simple correlation. Before he presented his data he asked opinions from the audience, and someone said, $20 thousand, and I said, $25,000, and then he said based on his data it indicated $50,000. I forget the exact R2, but it was like .20, and he called it "significant."

I've played around with using the median sale price comparison on small and larger data sets, and it always seems to yield a much larger adjustment than I think is appropriate or reasonable and would probably be diffcult to get it by CU. But how can you argue with the new science of adjustments!

 

[gregb]

If you adjust an ADU as contributing about as much value as a 2 car garage in my market, you will be dealing with a whole lot of headwind.

 

[Joe Flacco]

I went to a afternoon seminar and an appraiser gave a short talk about ADUs. His data, from the Portland market, indicated to him $50,000 differene in ADU compared to his selection of data that didn't have ADUs. He used a median sales price comparison and ran a simple correlation. Before he presented his data his asked opinions from the audience, and someone said, $20 thousand, and I said, $25,000, and then he said based on his data it indicated $50,000. I forget the exact R2, but it was like .20, and he called it "significant."

I've played around with using the median sale price comparison on small and larger data sets, and it always seems to yield a much larger adjustment than I think is appropriate or reasonable and would probably be diffcult to get it by CU. But how can you argue with the new science of adjustments!

The characteristics of the ADU makes a big difference. You know like a rowhouse with basement converted to ADU is not the same thing as a rowhouse with ADU in a carriage house / detached garage.

 

[robertwells]

Property location / governing muni ?

Hi Mike, Bay Point, unincorporated community in Contra Costa County...Bob

 

[gregb]

Hi Mike, Bay Point, unincorporated community in Contra Costa County...Bob

http://www.co.contra-costa.ca.us/DocumentCenter/View/49979/CCC-ADU-Ord-2017-25

 

[robertwells]

While I appreciate you reaching out to us for guidance, your first stop after the inspection should have been to the Building Inspector.

I see these all the time. I immediately go to the BI office and ask their opinion and look for permits. Once I have the ruling, I go to the client tell them my findings. That way, you are not asking the client what to do; and have them tell you false direction (number of meters does not determine legality). If it is illegal, then you are not doing an appraisal, with finding comps with an ADU, that in the end is still providing a false appraisal.

If it is legal, then you know that you are finding comps with ADUs AND checking to make sure those ADUs are legal. More work? Yup. But at least you are keeping you and your client out of trouble.

Hi Tom, Thanks for the input...as I noted, there is no recognition in public records for this unit, and as constructed more than 20 years ago, permit data in this unincorporated area may not be available. What additional info. could I get from building department? If I am assigning any value, it would be very conservative, due to almost lack of data, but the one comp I do have also has the same status of having its secondary, detached home not recognized in public records...

 

[robertwells]

http://www.co.contra-costa.ca.us/DocumentCenter/View/49979/CCC-ADU-Ord-2017-25

Hey Mike, Yes I took a look at that, and in some cases the structure conforms to these guidelines, and in some cases not. However, it remains that the feature is not recognized in public records and search of permit history on-line, which goes back 38 years, yields no permit data for this feature. So, my thinking is if I do attribute any value, it will be conservative due to these factors and almost no data, as well as the funky bath...Bob

 

[bnmappraisal]

Bob, I think you really need to be making phone calls starting Monday morning (today's Sun) to zoning and different agents in the area

This will help you regarding if you

attribute any value

to your ADU

Personally, my first call would be to zoning/building dept

Update your client accordingly. If they are worth any grain of salt, they will more than understand. If they give you push back ...