ADU adjustments - contributory value and/or rental income

[J Grant]

Do peers ever increase the GLA "variance threshold" so larger GLA's simply aren't adjusted downward, as a way to address the absence of comps that bracket this factor, explaining the rationale in the SCA narrative?

Sometimes, if a comp was smaller but by a minor amount - if subject is 2000 sf and a comp was 1950 sf I might not adjust that 1950 sf comp up. But I would not do the same for a 1800 sf house.

 

[bnmappraisal]

Interesting. I have seen a few quotes come across for a 1004 + 1007 on a SFR with ADU. Does anyone know how you would complete a 1007 for an ADU when there is literally no rental data available for them on the local MLS? What do lenders do for these if no one can figure it out?

(my bold) they find an appraiser who knows what they are doing and has experience with such properties. They also pay said appraiser a nice fee for said service

 

[bnmappraisal]

Please let me clarift: I won't use all possible comps with ADUs, I just need one with GLA greater than my subject.

(my bold) Why? Although "preferred" not exactly necessary

Any comp that brackets upper end of GLA (+25%) have the ADUs. Including 2-story & multi-levels results in many GLA greater than +25% where GLA $/sqft isn't accurate.

I don't understand why you are "stuck" on this +25%
What if a property was 28% larger? Or 32% larger? Just make your market adjustment for GLA and be done

 

[keaw1]

This entire thread is posters telling the OP who posted a question what to do and how to do it that is called giving advice to a poster. And sometimes one of us tells a poster they are wrong. Idk why you picked on my post out of all them, but you went out of your way to do it Since you only come on here once (in a while, please block me from your feed .

Maybe Pickleball? Join the gym, get a boyfriend. Get a life. There is more to life than appraising or telling everybody how much you know about appraising.

 

[J Grant]

Maybe Pickleball? Join the gym, get a boyfriend. Get a life. There is more to life than appraising or telling everybody how much you know about appraising.

The internet is full of trolls. That's why they invented the ignore button. I just put you on ignore so I wont see any of your future posts.

 

[Dublin ohio]

Maybe Pickleball? Join the gym, get a boyfriend. Get a life. There is more to life than appraising or telling everybody how much you know about appraising.

Cal 911. Obviously you forgot to take your meds.

 

[Fernando]

Interesting. I have seen a few quotes come across for a 1004 + 1007 on a SFR with ADU. Does anyone know how you would complete a 1007 for an ADU when there is literally no rental data available for them on the local MLS? What do lenders do for these if no one can figure it out?

Go further out of neighborhood. That's why you need to charge more for homes with ADUs.

 

[Terrel L. Shields]

If I have a house with no ADU, then I will find 3 comps without an ADU, no matter how many houses do have ADUs...period.