ADU to be included in GLA

[Tim Hicks (Texas)]

NO. Based on what you wrote you made (2) adjustments for the same square footage.

NO. NO. NO.

Or....am I reading this wrong?

Basically you have living space on both sides of a garage. Each has it's own exterior entry and/or you can walk through the garage into either side. That....is GLA or living space. I have appraised many homes where there is living space on each side of a garage. People built these for their parents or teenagers or many other reasons. You could call it an ADU but really........no. It's just a part of the living area on another wing. Especially since the public records show it all as GLA.

I did a SFR similar to this one. The county shows it as a SFR with 2,948 sf of GLA.

View attachment 54548

This looks like a two family property to me.

 

[Tru Red]

This looks like a two family property to me.

Yeah....I could see how it might look like a duplex but these are single family homes around here. Man/wife/kids on one side and grandma/grandpa on the other. It was all included (minus the garage) in the square footage. I've done many like this and always just one GLA. Occassionally a lender/underwriter has asked about the second kitchen but typically I label the smaller side as a "kitchenette". These also have only electric meter.

 

[Overimprovement]

I've done many like this and always just one GLA.

FHA? Fannie? Both have clear guidelines (some posted in this thread) stating it is NOT all GLA. Not getting revision requests on it is not the same as it being correct and/or USPAP compliant.

 

[Alsie35]

Yeah....I could see how it might look like a duplex but these are single family homes around here. Man/wife/kids on one side and grandma/grandpa on the other. It was all included (minus the garage) in the square footage. I've done many like this and always just one GLA. Occassionally a lender/underwriter has asked about the second kitchen but typically I label the smaller side as a "kitchenette".

You raised an interesting example that I have not run into - a "pass-through" garage in between 2 units/SFRs. I can see how you might think of calling that an SFR because you CAN walk from one into the other without going "outside" ... although you are walking through a below grade garage.

Its logical. Can't say if its technically right, though - my recollection is the same as Overimprovements ... but no time to do that research now.

I think that the existence of a second kitchen also points towards calling one an SFR and the other an ADU.

If you have similar comps though, and are evaluating them the same way as the subject (no double counting GLA, of course), I'd say that is a defensible valuation position, at least.

 

[Overimprovement]

By essentially every definition I have seen as an appraiser, GLA must be contiguously attached heated/cooled and finished space. That is why garage bathrooms do not count. The market may accept it, and even value it as contiguously attached, but it still isn't.

 

[Alsie35]

This looks like a two family property to me.

I understand Brit's logic Tim, .... but I have to agree with you - personally if I see this I'm gonna call it an SFR with an ADU, just to be safe. (And I hope I never do see it. )

 

[Alsie35]

By essentially every definition I have seen as an appraiser, GLA must be contiguously attached heated/cooled and finished space. That is why garage bathrooms do not count. The market may accept it, and even value it as contiguously attached, but it still isn't.

Sounds right. Again, have never seen this particular configuration.

 

[Tru Red]

FHA? Fannie? Both have clear guidelines (some posted in this thread) stating it is NOT all GLA. Not getting revision requests on it is not the same as it being correct and/or USPAP compliant.

The lender always approved. The underwriter always approved. The VA always approved. I got paid.

USPAP has no say on this.

The FHA and Fannie can call it a bird cage for all I care.

 

[Overimprovement]

USPAP has no say on this.

Well, technically it does, related to agreed upon scope of work, and results not being misleading, but I don't want to derail the thread too much.

 

[RSW]

I think calling the 2nd kitchen a kitchenette is misleading and a violation of USPSP. You can put lipstick on a pig, but it's still a pig.