Any advice welcomed

[Gtary]

I've got an appraisal assignment in which there are 2 dwellings on the property. They are both located on the same parcel, but have separate utilities. One is a brick ranch style home, and the other is a full manufactured home with HUD tags and compliance certificate. How would you best appraise this? would you call the manufactured home an ADU?

 

[Tim Hicks (Texas)]

Sounds like a house with manufactured home ADU to me. You might be surprised to find other sales like this on the MLS.

 

[JTip]

Zoning?

 

[alebrewer]

That raises a very interesting conundrum. Assuming GSE/FHA financing, would there ever be such a thing as a duplex consisting of a site built home and a manufactured home? If zoning allows a 2nd rentable unit, and zoning allows MFG on site, then seems there would be a strong argument for calling it a duplex. Problem is that there are different lending guidelines for site built vs MFG. F/F have in their guidelines that, if the ADU is a MFG, then the primary unit must be site built. Not so for private/portfolio lending, though...

 

[Elliott]

I've run into 'these.' Property owner gets a waiver to allow a elderly mother to live next to the family in a MH and its there for 20-years and then they plead for an exception. Like JTip said, "Zoning?"

 

[Tim Hicks (Texas)]

Probably no zoning, that is probably how it is accomplished. Texas rarely has any zoning outside city limits.

 

[swandel1]

Don't forget HBU analysis after reviewing the zoning. If both uses are allowed (ADU vs duplex) or if there is no zoning, HBU may dictate which way it should go. You may ultimately find that there is no difference in value, or one configuration may be more valuable that the other.

 

[Tim Hicks (Texas)]

It appears the oddball properties are coming out of the woodworks lately.

 

[Bobby Bucks]

Lots of possibilities, as was stated zoning? Lot size? Are those dwellings attached to one another? I just did a prelisting assignment for a C5 ranch house which has a singlewide attached to it, making it a true Trouse. They now know they will probably only get cash buyers. Encroachments? Also, is it legal with regard to water/sewer? I get a couple odd ones like that each year, but now only want to touch them if they’re REO. If it’s for a new loan, there may be issues with a GSE loan or a real bank. Some credit unions do oddball loans. Fewer restrictions for rural properties which are odd. The more details you provide, the higher the likelihood that someone here has had a similar assignment. I had one where the 2nd dwelling was manufactured and they had a big fighting ring for gamecocks which was active. I probably should have referred it to a G-man, someone would argue ti should have been commercials.

 

[NC Appraising]

Accessory Dwelling Units (ADUs) | Fannie Mae

ADUs can add value to a borrower’s home, provide additional space for extended family, or allow a borrower to earn rental income, all while helping address the country’s affordable housing shortage. Selling Guide loan products can be used to purchase homes with ADUs, renovate an existing ADU or...

singlefamily.fanniemae.com

What qualifies as an ADU?​

An ADU, commonly referred to as an accessory apartment or in-law suite, is a smaller additional living space on the same lot as a single-family home. It must include space for living, sleeping, cooking and bathrooms independent of the primary residence. While the ADU may or may not include access to the primary residence, it must be accessible without going through the primary residence and there must be some expectation of privacy from the home.

• Detached from the home entirely; It could even be a manufactured home

Accessory Dwelling Units​

An ADU is generally an additional living area independent of the primary dwelling that may have been added to, created within, or detached from the primary dwelling. The ADU must have basic requirements for living, sleeping, cooking, and bathroom facilities on the same parcel as the primary dwelling. See B2-3-04, Special Property Eligibility Considerations, for complete ADU eligibility requirements.
When reporting the living area of an ADU, it should not be included with the finished above-grade square footage calculation of the primary dwelling. It should be reported and adjusted for on a separate line in the grid, unless the ADU is contained within or part of the primary dwelling with interior access and above grade. If a standalone structure does not meet the ADU minimum requirements, it should be treated as any other ancillary structure and included as a separate line item in the sales comparison approach then adjusted based on its contributory value to the subject property.
Whether a property is defined as a one-unit property with an ADU or a two- to four-unit property will be based on the characteristics of the property, which may include, but are not limited to, the existence of separate utility meter(s), a unique postal address, and whether the unit can be legally rented. The appraiser must determine compliance with this definition as part of the analysis in the Highest and Best Use section of the appraisal. When there is an ADU, the appraisal report must include a description of the ADU and analysis of any effect it has on the value or marketability of the subject property. The appraisal report must demonstrate that the improvements are acceptable for the market. An aged settled sale will qualify as a comparable, and an active listing or under contract sale will qualify as a supplemental exhibit to show marketability.
Zoning for an ADU
If it is determined that the property contains an ADU that is not allowed under zoning (where an ADU is not allowed under any circumstance), the property is eligible under the following additional conditions:

• The lender confirms that the existence will not jeopardize any future property insurance claim that might need to be filed for the property.
• The illegal use conforms to the subject neighborhood and to the market.
• The property is appraised based upon its current use.
• The appraisal report states that the improvements represent a use that does not comply with zoning (“illegal” use).
• The appraisal report demonstrates that the improvements are typical for the market through an analysis of at least two comparable sales with the same non-compliant zoning use. Aged settled sale(s) with the same non-compliant zoning use are acceptable if recent sales are not available. At a minimum, the appraisal report must include a total of three settled sales.

See B4-1.3-04, Site Section of the Appraisal Report, for subject property zoning information.

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