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ADU superior to main dwelling

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
I did one last year that was an acre, outside of the city. It was improved with a manufacture house and a site-built cottage. The MH was newer and larger, had 3 beds and 2 baths, the site built house was smaller, much older but had some updates,. 2 bedrooms and 1 bath with a weird floorplan (typical old-fashioned bed and bath layout.

Which is the primary and which is the secondary?

By definition, the larger house is the primary and the smaller house is the accessory.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
The recent one I did year was one acre , a pool, a main dwelling aprox 2400 sf, upgraded but not remodeled, and a brand new 2 bedroom ADU of 1200 sf . The adu was both an over improvement in size and a super adequacy in finish, nicer upgrades than the main dwelling. Biggest ADU found in comps was managed to find one with 2 bedrm 800 sf, typical is 1 bedroom 600 sf. I made upward adjustments for ADU but not as much as it cost, because it was a super adequacy and a typical buyer is not demanding such a large one and would spend the $ to remodel the main dwelling. ADU in area are not typically rented , therefore what a bigger one would rent for would not be relevant. .

The OP if fortunate in that with a 20 acre site and outbuildings, the value contribution of the ADU is proportionately less.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Actually the definition says the ADU is usually subordinate in size.
 

Jerry Bone Jr

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
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?
Is the ADU approved via a "temporary family hardship" permit? Is the ADU outright allowed? What is the H&BU?
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
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.
If they can be sold separately then its not an ADU. H&BU and all that....
 

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
The OP issue is not really a ADU issue.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina

Joe Flacco

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
I dunno. It sounds like the issue is that the property is potentially over-improved. He is trying to figure out the contributory value of the accessory structures that cost a lot more than the primary dwelling.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
The smaller improvement with superior value would be the primary IMHO. The older unit the ADU. Since it can't be sold separately, it is an ADU situation. As noted, the definition does not dictate the larger improvement be considered the primary. I would think that since the smaller unit has higher value as well as a longer remaining effective life etc. that it would be the primary.
 
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