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ADU superior to main dwelling

PNW RE

Thread Starter
Sophomore Member
Joined
Jul 26, 2018
Professional Status
Certified Residential Appraiser
State
Washington
I'm working on an appraisal with an existing SFR (2,100sf +/-) on a parcel just under 20 ac. The appraisal includes the existing improvements as well as an ADU currently under construction (subject-to completion). The ADU is smaller than the main dwelling (1,200sf+/-); however highly superior quality of construction. The cost of the ADU greatly exceeds the cost of the existing dwelling. There are two wells and septic systems. Based on the zoning requirements the parcel cannot be divided.

Have any of you encountered this?
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
No. But the thought springs to mind, maybe the ADU quality is over improved? As proposed. :shrug:
 

PNW RE

Thread Starter
Sophomore Member
Joined
Jul 26, 2018
Professional Status
Certified Residential Appraiser
State
Washington
No. But the thought springs to mind, maybe the ADU quality is over improved? As proposed. :shrug:
Absolutely, I'm just trying to see if there is a way to support a credible opinion of value.
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
I've come across this in a few instances. Usually it involves and older residence with a newer accessory building, or an older accessory building that has been renovated prior to the main dwelling being renovated.

Probably my all time favorite is accessory dwelling unit on the property with no main residence. :)
 

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
Depending on the market maybe the primary dwelling is under improved.
 

PNW RE

Thread Starter
Sophomore Member
Joined
Jul 26, 2018
Professional Status
Certified Residential Appraiser
State
Washington
The exact floor plan on 5-20 ac parcels sell for $400 - $600. The cost for the whole package, main dwelling, shops, adu and land is roughly $1M. When dealing with complex properties I often determine what it's not worth. $1M buys a lot in this rural area. 6,500sf+ high quality construction on similar parcel size.
 

PNW RE

Thread Starter
Sophomore Member
Joined
Jul 26, 2018
Professional Status
Certified Residential Appraiser
State
Washington
Depending on the market maybe the primary dwelling is under improved.
The primary dwelling is a common plan in this market. I've probably appraised well over 100 of them, proposed and existing.
 

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
I had a assignment a while back where the improved half acre property was about $1.6 million. Value of half acre site being $800k. They bought the tear down next door and then spent $2.5 million improving the adjacent lot with pool, 1000 SF guest / pool house, and landscaping. Massive over improvement. Recently they ended up selling the two properties separately and only got $1.1 for the adjacent lot with the improvements.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
The exact floor plan on 5-20 ac parcels sell for $400 - $600. The cost for the whole package, main dwelling, shops, adu and land is roughly $1M. When dealing with complex properties I often determine what it's not worth. $1M buys a lot in this rural area. 6,500sf+ high quality construction on similar parcel size.
The good news is the ADU is just one component among the above - it is a super adequacy, but then again in a high value area of this price range, buyers pay a premium for new/well finished.. I'd make a qualitative consideration of its age and quality in the reconciliation, , A harder part may be finding an ADU that size in the comps? it's always about finding good /similar LEE'S CROSSING PL 1 LT 18 BLK 1 and there will be a lot to adjust with different acreage and main dwelling sizes and out buildings etc -.the ADU won't present that great an issue in the context of the whole.
 
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