Another ADU but different scenario

[gregb]

I give the highest weight to its legal use because of my state's strict laws.

Which strict state of CA laws?

 

[Surf Cat]

I'm with the contact the lender the lender crowd.....convey to the lender the as-is configuration cannot be supported for Fannie Mae eligibility because the required comparable-sales evidence is unavailable.

Cost to cure converting back to its original use could work. Especially if zoning requires 2 car covered parking.

You would need some sort of market evidence for a flex space...again, throw it back to the lender. If they cancel make sure to charge a trip fee plus comparable research.

 

[sputnam]

You are the appraiser so you will have to decide how to handle it. My Scope of Work does not include verifying that improvements were permitted by the county. It does include inspecting (in the appraisal sense) the subject property and making judgements about the quality and condition of the improvements. It also includes analyzing market reactions to features of the subject property.. positive or negative.

 

[Fernando]

You are the appraiser so you will have to decide how to handle it. My Scope of Work does not include verifying that improvements were permitted by the county. It does include inspecting (in the appraisal sense) the subject property and making judgements about the quality and condition of the improvements. It also include analyzing market reactions to features of the subject property.. positive or negative.

But you need to know if permits were taken for subject and comps so you can analyze any effects on market value.
I check for permits to see when the improvements were done giving me idea also on condition like if roof is near end of its life.

 

[sputnam]

But you need to know if permits were taken for subject and comps so you can analyze any effects on market value.
I check for permits to see when the improvements were done giving me idea also on condition like if roof is near end of its life.

Nonsense. Please tell me where in your appraiser education you found that. What you need to know is how buyers will react... in terms of $... to the improvements you observe. Do you think that the typical buyer researches permits before they make an offer? Checking on permits is certainly one way to find information about the age of the improvements. It's not the only way. It's Lenders that have tried to turn appraisers into the permit police.