3.6 My 12 reports of experience

[chad hampton]

It’s a bizarre world we live in. On one hand, they want loan officers estimating as many values as they can and getting waivers. and on the other, they want appraisers to measure ceiling height, and front porch elevation.

It seems ADU are a big example that everyone brings up in podcast. Are ADU is really giving lenders and the GSE’s that much trouble? I do a handful of Homes with ADU a year. And usually they’re in areas of very wealthy neighborhoods where the comps have very similar ADU. Areas over detached, garages, etc. And they don’t add anywhere near the value that the main home does. I don’t know why they’re such a problem.

 

[alebrewer]

The reason ADU's are now a bigger issue, it seems to me, is because the GSE loan programs have been expanded for properties that: (1) are appraised under the 3.6 protocol, and (2) have more than one ADU. In fact, it's my understanding that any combination of units + ADU <= 4 is now financeable. So 2F + 2xADU, or 3F + 1xADU, etc. The programs for MFG have also expanded under the 3.6 protocols.

 

[OSU Beavers]

Nobody has gotten one of these out the door. NOBODY is ready.

Skippy in the NE is cranking out staff AMC 3.6 reports on million dollar homes every week using AIVRE. At least he is as reported by the youtube videos.

 

[chad hampton]

The reason ADU's are now a bigger issue, it seems to me, is because the GSE loan programs have been expanded for properties that: (1) are appraised under the 3.6 protocol, and (2) have more than one ADU. In fact, it's my understanding that any combination of units + ADU <= 4 is now financeable. So 2F + 2xADU, or 3F + 1xADU, etc. The programs for MFG have also expanded under the 3.6 protocols.

OK, but in 25 years I’ve never appraised a property that had more than one ADU. Maybe in some part of the country where they have homes that are considered compounds. Just seems odd to me that they always bring up ADU.

 

[Zoe]

It could get ugly on the whole system (pipeline) if it slows things down too much. That dog may bite............

 

[Zoe]

 

[DWiley]

OK, but in 25 years I’ve never appraised a property that had more than one ADU. Maybe in some part of the country where they have homes that are considered compounds. Just seems odd to me that they always bring up ADU.

The prevalence of ADUs varies greatly by location. In CA (which is ~20%-30% of the total real estate market) laws recently changed to basically allow ADUs on any home.

 

[alebrewer]

OK, but in 25 years I’ve never appraised a property that had more than one ADU. Maybe in some part of the country where they have homes that are considered compounds. Just seems odd to me that they always bring up ADU.

Zoning regs have changed in many municipalities - and states - to accommodate higher density habitation due to relaxed ADU regs. This is one way governmental entities are attempting to deal with the housing shortage.

 

[NC Appraising]

OK, but in 25 years I’ve never appraised a property that had more than one ADU. Maybe in some part of the country where they have homes that are considered compounds. Just seems odd to me that they always bring up ADU.

It's a coming..to nc. Get prepared. Adus suck, but I'm more concerned with these pad shared homes...the 3 bed 2 bath home been converted into 6 bed 6 bath homes with each bedroom being rented out.....imagine being next to one of the is a SFR neighborhood....

PadSplit co-living shared homes are actively expanding in Charlotte, providing a rapidly growing but locally controversial affordable housing alternative. Local real estate investors are increasingly converting single-family homes into individual "rent-by-the-room" spaces to maximize cash flow. [1, 2, 3]
The latest news and market updates concerning PadSplit shared homes in Charlotte include:


ADUs
Statewide Legislation & Mandates

North Carolina
The General Assembly passed a sweeping regulatory reform bill that is now awaiting a signature from Gov. Josh Stein. The bill mandates that cities with populations exceeding 50,000 must allow at least one ADU per single-family lot. It also prohibits cities from implementing special zoning approvals, charging higher permitting fees, or limiting ADUs to less than 800 square feet.

 

[ucbruin]

It’s a bizarre world we live in. On one hand, they want loan officers estimating as many values as they can and getting waivers. and on the other, they want appraisers to measure ceiling height, and front porch elevation.

It's been that way since I can remember....