100% Rebuild

[Bill Waite]

I'm sure this has been hashed over many times, and I did do a search. here is the situation. SFR in LA County. Accessary unit attached to a 2 car detached garage. Permitted as a hobby room in 1971, converted to a guest house over the years, 1 bed 1 bath, kitchen, and LR. Appraised it as is. Legal non conforming. Underwriter wants a 100% rebuild letter and to cut the value. This is the comment I used:
Please let it reflect throughout this report that after a conversation with the Los Angeles County Planning Department it was determined that the accessary unit is legal non conforming as an accessary unit, however it cannot be rebuilt as such. It was also determined that it can be rebuilt as a hobby room as originally built. This appraisal was based on the subject in its as is condition, therefore no further adjustments were made. The County will not provide a rebuild letter unless a formal request is made in writing. This falls outside of the boundaries of the appraisers scope of work and the appraiser recommends that said letter is requested by the lender.
Basically I compared it to other SFR with accessary units because that is what I have, AS IS. Am I wrong?

 

[Walter Kirk]

I would never comment on a future use of a property unless I employed a hypothetical condition. I like your comment but I wouldn't even address the the rebuilding issue, that's not the appraisers job.

 

[bart nathan]

"just say no" to stupid underwitter requests. Sounds like more of a condition that your client might have to dig up.

 

[Tater Salad]

Most likely, the U/W is asking for the broker to provide a rebuild letter, and the broker is asking for you to do it because he/she either doesn't know how, or doesn't want to do it. Just say no!

If the comps used are also legal non-conforming and would not be rebuildable, I would state that as proof that the market doesn't care. If the comps that you used are legal and rebuildable, however, you may not be comparing apples to apples.

Good luck!

 

[Webbed Feet]

<snip>Permitted as a hobby room in 1971, converted to a guest house over the years, 1 bed 1 bath, kitchen, and LR. Appraised it as is. Legal non conforming. Underwriter wants a 100% rebuild letter and to cut the value. This is the comment I used:
Please let it reflect throughout this report that after a conversation with the Los Angeles County Planning Department it was determined that the accessary unit is legal non conforming as an accessary unit, however it cannot be rebuilt as such. It was also determined that it can be rebuilt as a hobby room as originally built. This appraisal was based on the subject in its as is condition, therefore no further adjustments were made. The County will not provide a rebuild letter unless a formal request is made in writing. This falls outside of the boundaries of the appraisers scope of work and the appraiser recommends that said letter is requested by the lender.
Basically I compared it to other SFR with accessary units because that is what I have, AS IS. Am I wrong?

Mr. Waite,

You're ok... but I winced a little reading your post. At least in my location I would NOT expect to find an ADU lacking permits with kitchen, bath, and sleeping area, and created out of a permitted "hobby" room to be found to be "Legal" at all whatsoever. Knowing what I have learned over the years I doubt I would have allowed a "conversation" to be repeated like that in my addendum. If permits were obtained for that hobby room, that clearly means to me that permits would be required to build a kitchen, bath, and sleeping area in there. IF said permits would of been obtained they would have to let them rebuild, no? Lacking permits... it can't be legal. Conforming or not either way. That's why they won't allow it to be rebuilt. I would suspect whoever you had your conversation with didn't know their rear end from gofer hole and I would have wanted it in writing.

No, you should not take on getting a rebuild letter and I bet underwriting is thinking exactly what I am. How does one get permits for a hobby room, no permits for a conversion of that kind, and have the conversion considered legal nonconforming? Plus, your comps inherently give it value, but as others have said, did you prove those comps had ADU's that were also unpermitted? Because as already said, if all those comps have permitted and rebuildable ADU's... you only proved what the value would be IF the subject obtained permits for that ADU.

Oops?

Barry Dayton

 

[Deleted member 77547]

I'm not sure I would stick my neck out to say it may or may not be rebuilt - especially based on what someone at the County Building Dept. SAID. I would instead put it back in the lap of the client and make a comment stating that the "The appraiser is not an expert in local building and zoning ordinances and codes. If there is a question as to whether the accessory building can be rebuilt to its current state as of the date of inspection, then those questions should be directed toward John Doe at the County Building Dept. 555-1212. " Let the client file forms with the county.

You imply in your comments that it can be rebuilt in certain cases because John Doe at the Blding Dept said so. What if John Doe gets fired from the County next week and the accessory burns down two months later? What is in your workfile that could back up your statements besides notes from what might become an "alleged" conversion you had with the Bldg Dept.?

My two cents.

Judy

 

[Gavin Brody]

Accessory Unit

Google "California Accessory unit law" and there is some great boiler plate in the state code to get them off your back. As the previous posters have stated it is a lender's problem not an appraiser's. If you did an "as - is" appraisal and had apples to apples you're done!

 

[lmichels]

Our local planning dept. got very annoyed at appraisers providing "rebuild letters". Told us appraisers were not employed by the planning dept. and therefore not authorized to provide rebuild letters. Told us that they only provide information like rebuild letters at the request of the homeowner. Tell your client to get the homeowner to pursue it.

 

[George W Dodd]

A rebuild letter should only come from the Planning/Zoning Dept of the County/City the property is located in.

 

[Otis Key]

I'll only go out of my way to get a rebuild letter from the county when I'm paid $X,zzz in advance - then I tell them it will take some time for me to get around to it, but if they want to actually do their job, the phone number (505) ###-####, and they can probably get it sooner than I'll "get around to it". Besides, it's outside the original SOW and what was orderd, which BTW, was an appraisal. NOT a rebuild guarantee!