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ADUs on the Grid

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Doug Bennett

Doug Bennett

Freshman Member
Joined
Jun 20, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Gang - While I am pretty certain that I once had documentation from some legitimate source detailing the finer points on how to value an ADU and where one made adjustments on the Grid, I can no longer find that reference. So, is it true that the adjustment for the ADUs GLA is NOT included along with the Main Dwelling Unit's GLA (I am pretty certain this is true) so that one should use a separate Line Item on the Grid to post the adjustment there.

Is this accurate? If so/if not, could you also point me to a source for this information? I expected to find some FNMA/Freddie material on it, but Google returned nothing specific on this particular aspect of valuing/adjusting for the ADU.

I appreciate your time and advice in advance . . . especially if it's accurate!

PS: memory's the first thing to go . . .

Best to all.
 
Search the forums. I'm sure this has been answered a million times. No. ADU is not included in GLA. Finished space above a garage is not included in GLA. Those spaces have fundamentally different utility and don't have the same value per square foot. It's not right to include it in GLA. Put it on a line at the bottom.
 
Jeffrey Hilborn said:
Search the forums. I'm sure this has been answered a million times. No. ADU is not included in GLA. Finished space above a garage is not included in GLA. Those spaces have fundamentally different utility and don't have the same value per square foot. It's not right to include it in GLA. Put it on a line at the bottom.
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Dr Hillborn,

Thanks for the response. Yes, I did search the forums . . . I failed to make my real interest clear - I was looking for the FNMA/Freddy Mac/AI document(s) that spells out the stipulations for an ADU.

Again - thanks for the update.
 
Doug Bennett said:
Dr Hillborn,

Thanks for the response. Yes, I did search the forums . . . I failed to make my real interest clear - I was looking for the FNMA/Freddy Mac/AI document(s) that spells out the stipulations for an ADU.

Again - thanks for the update.
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Fannie unclear with legal and illegal ADUs.
I would give no value to unpermitted ADUs but market gives it some value.
There's no clear cut way in doing it depending on the reviewer and me.
One time I didn't feel the illegal ADU was worth mentioning as an ADU even though I showed photo of small kitchenette in converted garage and I didn't call it. Client accepted it.
 
Consider this @Doug Bennett (I run into many ADU/In Law Quarters in my market)

If the typical buyer is looking for a 2,000 sf house, would the same buyer want a 2,000 sf continuous house or a 1,500 sf house with a 500 sf ADU (detached or attached doesn't matter)?
 
Doug Bennett said:
Gang - While I am pretty certain that I once had documentation from some legitimate source detailing the finer points on how to value an ADU and where one made adjustments on the Grid, I can no longer find that reference. So, is it true that the adjustment for the ADUs GLA is NOT included along with the Main Dwelling Unit's GLA (I am pretty certain this is true) so that one should use a separate Line Item on the Grid to post the adjustment there.

Is this accurate? If so/if not, could you also point me to a source for this information? I expected to find some FNMA/Freddie material on it, but Google returned nothing specific on this particular aspect of valuing/adjusting for the ADU.

I appreciate your time and advice in advance . . . especially if it's accurate!

PS: memory's the first thing to go . . .

Best to all.
Click to expand...
Yes, I put my adjustment separately
 
I was asked one time when I was appraising this $3 milllion home.
Homeowner asked me if it made sense for him to add an ADU in the yard.
I gave my personal view. If I live in such an expensive home in an expensive neighborhood, do I want a tenant living in my yard? No.
 
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