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Can I perform an appraisal with the following factor:

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TPA_24

Freshman Member
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Nov 19, 2020
Professional Status
Certified Residential Appraiser
State
Texas
I arrived at a house this morning and found out that it has a 1200 sqft home with a one car garage in the back, but on the same parcel. It has it's own address, fronting the street running parallel to the subject property's street. Their inlaws live in this home. Normally I would think accessory unit, however with the mailing address on the other street I am confused on how to approach this.

Again, the ADU does not have it's own appraisal district page, it is included in the subject's as "House" (Address). I reached out to the AMC and I am waiting to hear back. Thanks in advance.
 
I arrived at a house this morning and found out that it has a 1200 sqft home with a one car garage in the back, but on the same parcel. It has it's own address, fronting the street running parallel to the subject property's street. Their inlaws live in this home. Normally I would think accessory unit, however with the mailing address on the other street I am confused on how to approach this.

Again, the ADU does not have it's own appraisal district page, it is included in the subject's as "House" (Address). I reached out to the AMC and I am waiting to hear back. Thanks in advance.
The one car garage is a home? I'd say its SFR with ADU given the information. Is it seperately metered?
 
The one car garage is a home? I'd say its SFR with ADU given the information. Is it seperately metered?
I think OP is saying they arrived at the home - and found an additional 1200' home w/1 car garage at the rear...
 
Agree zoning is the big issue--if non-conforming use, that may stop things dead in their tracks. Pick another address with the same zoning, and call the zoning office and ask--tell them you are speaking hypothetically, we are not code enforcement officials.

What is size of main house? I have trouble calling something an ADU if their sizes are nearly the same. Does it look like it was designed as two separate houses, or an ADU? What would the typical buyer think? Any chance at all of separating out to a separate parcel? Are utilities all separate?

I think you need to get answers to these things before asking advice from client. They will want some of these answers usually.
 
Anyway you slice it, you have a 2 dwelling property. So you need 2 dwelling comps. Whether you call it an ADU or a two house property, does it matter? So
reached out to the AMC
So what lending program? If FHA, there are rules. If FNMA et al, then the rules can be different. But if an in-house lender who is not subject to the 4000.1 or the FNMA selling guide, then IAG and USPAP is all you need to know...go find comps with 2 houses. Adjust accordingly. If one house is larger, better, etc. all the better to treat the other as a subordinate home. These are nice but if you bid as if a single home, inform the AMC that the fee isn't going to cut it.
 
Anyway you slice it, you have a 2 dwelling property. So you need 2 dwelling comps. Whether you call it an ADU or a two house property, does it matter? So

So what lending program? If FHA, there are rules. If FNMA et al, then the rules can be different. But if an in-house lender who is not subject to the 4000.1 or the FNMA selling guide, then IAG and USPAP is all you need to know...go find comps with 2 houses. Adjust accordingly. If one house is larger, better, etc. all the better to treat the other as a subordinate home. These are nice but if you bid as if a single home, inform the AMC that the fee isn't going to cut it.
If main house is 5000', ADU seems reasonable. Any detached ADU could be called a small house. I agree loan program matters, but first things first...
 
The tax parcel does not define the property you are to appraise. In this case, you will need to contact the Client, tell them what you have found, and find out how they want to proceed. You could appraise the front house and the land under it. That's pretty straight forward although it might require a physical segment. No way to know based on the limited info you provided. You could also appraise the entire parcel... in which case the property is a duplex. Remember, the 1st step is to identify the property to be appraised.
 
The tax parcel does not define the property you are to appraise. In this case, you will need to contact the Client, tell them what you have found, and find out how they want to proceed. You could appraise the front house and the land under it. That's pretty straight forward although it might require a physical segment. No way to know based on the limited info you provided. You could also appraise the entire parcel... in which case the property is a duplex. Remember, the 1st step is to identify the property to be appraised.
Regulated lenders need the "as is" value of the property. They can also require a partial interest value and loan from that but, as I understand the IAEG they must have the "as is" value, too.

From the IAEG:

The estimate of market value should consider the real property’s actual physical condition, use, and zoning as of the effective date of the appraiser’s opinion of value.
 
I think OP may have skipped bail...
 
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