ADU to be included in GLA

[Trihard]

Were not paid enough to deal with **** like this.

 

[Tim Hicks (Texas)]

Just because it is not typical for the neighborhood, it does not make it a single family property. Both units are essentially the same size. Both have living areas, 2+ bedrooms and baths and kitchens. I don't care if you call it a SFR, that is a two family property by definition, but without seeing it personally it could be a SFR with an ADU. If it violates zoning as a two family property, it might qualify as a single family residence with an ADU, but you definitely should not count it all as GLA. You can adjust any amount that is appropriate for the ADU, but it still should be counted separately. Calling the one kitchen a kitchenette changes nothing. What the county calls living area or a agent calls living is not the same definition as Gross Living Area for an appraiser. The tax office wants the maximum amount of taxable living area. MLS listings do not say GLA, they say living area. So agents always include any living area in that count. Sometimes the easy way is not the correct way. Also, if you used Fannie Mae forms, then you follow Fannie Mae guidelines. Any any additional guidelines (FHA, VA, USDA) are supplemental guidelines. If you don't follow Fannie Mae guidelines, you should not use that form as the 1004 is designed for Fannie Mae/Freddie Mac guidelines and USPAP. The VA and HUD expect Fannie Mae guidelines and USPAP to be followed.

 

[Tim Hicks (Texas)]

Even if the ADU is equal in value, it is still proper to count the ADU separately and just exceed Fannie Mae (see that key word) guidelines, but to classify the physical characteristics properly just to keep you safe on a future field review or forensic review. Do you think the underwriter or lender will care about you at that point? Always report the physical characteristics as true and correct as possible because you never know when it could come back to bite you in the future. I know, I did many Fannie and Freddie field reviews with access to the property where they were after the original appraiser. Many times for good reason. I would rather have 50-100% adjustments and follow the guidelines than open myself up to investigation later. If you report what is true and correct, there is nothing they can hold against you.

 

[Tru Red]

I think calling the 2nd kitchen a kitchenette is misleading and a violation of USPSP. You can put lipstick on a pig, but it's still a pig.

SMH.

 

[RSW]

+SMH.

You can shake your head all you want. Facts are facts. Misrepresenting the facts are a violation of USPAP.

 

[Tru Red]

You can shake your head all you want. Facts are facts. Misrepresenting the facts are a violation of USPAP.

I have never "misrepresented the facts". You can be wrong as long as you desire. Cheers.

 

[Tru Red]

Just because it is not typical for the neighborhood, it does not make it a single family property. Both units are essentially the same size. Both have living areas, 2+ bedrooms and baths and kitchens. I don't care if you call it a SFR, that is a two family property by definition, but without seeing it personally it could be a SFR with an ADU. If it violates zoning as a two family property, it might qualify as a single family residence with an ADU, but you definitely should not count it all as GLA. You can adjust any amount that is appropriate for the ADU, but it still should be counted separately. Calling the one kitchen a kitchenette changes nothing. What the county calls living area or a agent calls living is not the same definition as Gross Living Area for an appraiser. The tax office wants the maximum amount of taxable living area. MLS listings do not say GLA, they say living area. So agents always include any living area in that count. Sometimes the easy way is not the correct way. Also, if you used Fannie Mae forms, then you follow Fannie Mae guidelines. Any any additional guidelines (FHA, VA, USDA) are supplemental guidelines. If you don't follow Fannie Mae guidelines, you should not use that form as the 1004 is designed for Fannie Mae/Freddie Mac guidelines and USPAP. The VA and HUD expect Fannie Mae guidelines and USPAP to be followed.

You can shake your head all you want. Facts are facts. Misrepresenting the facts are a violation of USPAP.

Clearly you are right. Again. And I am wrong. I'll have to resind all those appraisal reports since 2006 that I've done this way. It could have caused a $10 maybe even a $20 deviation.

 

[Mejappz]

The GSEs and HUD should stay out of this; this is a local market issue, not a swamp issue.

 

[RSW]

Clearly you are right. Again. And I am wrong. I'll have to resind all those appraisal reports since 2006 that I've done this way. It could have caused a $10 maybe even a $20 deviation.

It's your butt & license on the line. Sooner or later you will have to face the State Board. I could care less if you do it correctly or not. It's your mess.

 

[DWiley]

Yeah....I could see how it might look like a duplex but these are single family homes around here. Man/wife/kids on one side and grandma/grandpa on the other. It was all included (minus the garage) in the square footage. I've done many like this and always just one GLA. Occassionally a lender/underwriter has asked about the second kitchen but typically I label the smaller side as a "kitchenette". These also have only electric meter.

So, if I buy a 2-unit with 2 units of similar size, I move into one side and put my Mom in the other side, then it is no longer a 2-unit but an SFR with an ADU?