What major appliances are required for a kitchen?

[MMing5000]

Subject property being sold is a 3 bedroom and 2 bath dwelling with a legal and permitted ADU.
The property type in the appraisal report is indicated as a One Unit with ADU.

The ADU has a kitchen sink, slide-in refrigerator, a dishwasher, built-in countertop induction range with no buit-in oven, but has a countertop microwave oven.

The reviewer says because the ADU has a wet-bar, not a full kitchen, it can not be classified as an ADU, and must revise the appraisal report to indicate the property is a One Uniit (not One Unit with ADU).

However, the main house on the property has no appliances at all.

The property owner lives in the 1 bedroom ADU, and the main dwelling is a 3 bedrooms and 2 baths rental unit without any major appliances.

Any suggestions on a courteous reply to the reviewer?

 

[alebrewer]

For F/F, in order to be considered an ADU, the accessory unit must have the following:

• The kitchen must, at a minimum, contain the following:
  • cabinets;
  • a countertop;
  • a sink with running water; and
  • a stove or stove hookup (hotplates, microwaves, or toaster ovens are not acceptable stove substitutes).

Seems to me that what you've described would, indeed, qualify as ADU.

 

[The Warrior Monk]

It depends on several factors, notably client requirements and local code. They might not be the same.

As a general rule, in the areas I work, No Stove = No ADU. However, even if there is a stove, other items such as cabinets, counterops, etc. might not be required to be considered an ADU locally, but the client/intended user may add additional requirements.

 

[Elliott]

I would explain to the 'reviewer' how the market would view the house and ADU. If the market looks at as a house with a kitchen and an ADU with a kitchen, then so be it. Appliances do not a kitchen make, since they can be real, personal, or fixtures.

 

[Terrel L. Shields]

So Fannie discriminates against a religious group? Hutterites.

 

[Basically Rectangular]

What alebrewer states is correct, per FNMA;

B2-3-04, Special Property Eligibility Considerations (10/04/2023)

selling-guide.fanniemae.com

This website hyperlink function was not working when I inserted the above link, if you copy and paste it should bring you to the FNMA selling guide ADU page.

However, local ordinances apply as well. I don't think that FNMA would consider an ADU if it did not meet the FNMA minimum guidelines, even if it is considered an ADU by the local ordinance.

Does your subject have cabinets? If not, then it may be a wet bar (although I have seen wet bars with cabinets but no range). I would definitely make sure that puppy is legal if I were going to argue the case of it being an ADU.

 

[alebrewer]

However, local ordinances apply as well. I don't think that FNMA would consider an ADU if it did not meet the FNMA minimum guidelines, even if it is considered an ADU by the local ordinance.

True, but I hadn't thought about it from the other perspective - if the GSE's consider it an ADU, but for some reason it didn't meet local ordinance for ADU (can't think of what that would be), would it still be acceptable collateral for the GSE's?

 

[J Grant]

Subject property being sold is a 3 bedroom and 2 bath dwelling with a legal and permitted ADU.
The property type in the appraisal report is indicated as a One Unit with ADU.

The ADU has a kitchen sink, slide-in refrigerator, a dishwasher, built-in countertop induction range with no buit-in oven, but has a countertop microwave oven.

The reviewer says because the ADU has a wet-bar, not a full kitchen, it can not be classified as an ADU, and must revise the appraisal report to indicate the property is a One Uniit (not One Unit with ADU).

However, the main house on the property has no appliances at all.

The property owner lives in the 1 bedroom ADU, and the main dwelling is a 3 bedrooms and 2 baths rental unit without any major appliances.

Any suggestions on a courteous reply to the reviewer?

If as a client condition a stove or lack of stove defines an ADU, the subject can be called a guest house instead. But it is still a separate building from main dwelling - idk how the main dwelling gets passed without having a kitchen? Is it being made subject to install basic cooking function in main house ?

 

[Dublin ohio]

If as a client condition a stove or lack of stove defines an ADU, the subject can be called a guest house instead

It seems from the op. That the UW is calling it a wet bar because it does not have an oven. It does have a built in range top.

idk how the main dwelling gets passed without having a kitchen?

I do a lot of new builds. Where the buyer is providing their own appliances. But have them installed after closing for security reasons. Never seen a coo refused because refrigerator or range are not installed

 

[KHS445]

Unless the appliances are built-in they are personal property. Even if built-in short life (compared to the dwelling) appliances are still basically personal property.

Are there appraisers out there giving value on the sales grid to a Wolf stove versus a Kenmore?