Adu

[Dbittner]

I have a single family home that has set up a apartment or mother in law to the rear of the subject. It has a livingroom,bedroom,bath and kitchen. There is access from the main to the apartment by way of their mudroom and also there is a separate entrance from the back. Now there is only one meter so is this a adu or is it a mother in law unit?

 

[Dublin ohio]

I have a single family home that has set up a apartment or mother in law to the rear of the subject. It has a livingroom,bedroom,bath and kitchen. There is access from the main to the apartment by way of their mudroom and also there is a separate entrance from the back. Now there is only one meter so is this a adu or is it a mother in law unit?

Here is what Fannie says

• The ADU may, but is not required to, include access to the primary dwelling. However, it is not considered an ADU if it can only be accessed through the primary dwelling or the area is open to the primary dwelling with no expectation of privacy.

B2-3-04, Special Property Eligibility Considerations (10/04/2023)

This topic contains information on Fannie Mae’s unique property eligibility requirements, including:

selling-guide.fanniemae.com

 

[Fernando]

I have a single family home that has set up a apartment or mother in law to the rear of the subject. It has a livingroom,bedroom,bath and kitchen. There is access from the main to the apartment by way of their mudroom and also there is a separate entrance from the back. Now there is only one meter so is this a adu or is it a mother in law unit?

Sounds like done unpermitted.
An ADU can be illegal and still considered as a mother in law unit.
What does your planning say about meters for ADUs?

 

[Dublin ohio]

Sounds like done unpermitted.

You do know what ASSume means?

 

[Fernando]

You do know what ASSume means?

Appraisers need to get off their AS* and verify legality of the ADU or mother in law or whatever additional unit with kitchen and bathroom.

 

[Fernando]

And also figure out if Comps' ADU are legal or illegal, then you can properly adjust them. ADUs usually differ in appeal.

 

[Dublin ohio]

And also figure out if Comps' ADU are legal or illegal, then you can properly adjust them. ADUs usually differ in appeal.

Do you check for permits for all of your subjects and comps without an adu?

 

[Sandra Koutsopoulos]

Zoning laws vary city to city, state to state, so reality may not conform to what the City says is there.
But I agree with Dublin Ohio: if access only through main LQ, then its not an ADU per se, and just additional living space to the main house. Was it a build? Permitted addition? Hmmm... If it has an outside entrance but still attached with possible access from main house, you may call it an ADU, or additional GLA if permitted (or mini-ADU). The fact remains that the square footage is there, and you have to call it something. If only SFR zoning on that lot, and square footage is permitted, I'd lean to SFR and include all the GLA. If you call it an ADU, or a "granny flat" (uh oh, my Fair Housing module says that's a discriminatory word), then you will likely need a comp with the same situation. Good luck with that.
In CA, I'm finding more than I expected, houses have "secret" rental areas. Saw one today. The first floor 2 bedrooms & bath had an exterior door put in, and the previous owner rented that space out. Current owner used the whole house and took off the door in the hallway that separated the LR from that BR/Ba wing. And even if not actually 'legal' to have an ADU, some ppl will put in an outside door, install that pass-thru door and say their "roommate" occupies that space... all perfectly legal up to a point.
So you probably could call that space several things legitimately. And the "kitchenette" in there? 'Oh yeah, that's where we store our snacks when we watch TV in our 'gameroom' here'. Duh.

 

[Fernando]

Do you check for permits for all of your subjects and comps without an adu?

When you have an ADU, you have to check subject's legality and comps.
I've been doing more ADUs than you and for many decades.
There's one city here that have good records of ADUs. Before Covid, I would go to planning department and verify the ADUs and other permits on subject.
Many appraisers don't do that. I do it so I can adjust accordingly.
ADUs take more work and we should charge a premium.

 

[Fernando]

Zoning laws vary city to city, state to state, so reality may not conform to what the City says is there.
But I agree with Dublin Ohio: if access only through main LQ, then its not an ADU per se, and just additional living space to the main house. Was it a build? Permitted addition? Hmmm... If it has an outside entrance but still attached with possible access from main house, you may call it an ADU, or additional GLA if permitted (or mini-ADU). The fact remains that the square footage is there, and you have to call it something. If only SFR zoning on that lot, and square footage is permitted, I'd lean to SFR and include all the GLA. If you call it an ADU, or a "granny flat" (uh oh, my Fair Housing module says that's a discriminatory word), then you will likely need a comp with the same situation. Good luck with that.
In CA, I'm finding more than I expected, houses have "secret" rental areas. Saw one today. The first floor 2 bedrooms & bath had an exterior door put in, and the previous owner rented that space out. Current owner used the whole house and took off the door in the hallway that separated the LR from that BR/Ba wing. And even if not actually 'legal' to have an ADU, some ppl will put in an outside door, install that pass-thru door and say their "roommate" occupies that space... all perfectly legal up to a point.
So you probably could call that space several things legitimately. And the "kitchenette" in there? 'Oh yeah, that's where we store our snacks when we watch TV in our 'gameroom' here'. Duh.

Again with that one city, the city allows an inlaw unit to become legal if modifications done.
If you see subject having a nicely done ADU and not legal, it's still have value because it can be easily be permitted if owner desires.