- Jul 20, 2003
- Professional Status
- Certified Residential Appraiser
Funny, they call shopping carts "buggies" in Tennessee...lol
Thx! Given the age... it has to be grandfathered. But I can't know for sure unless I get a Zoning Cert and that requires a FOIA filing. This is a tricky one because the HBU is really close for a smaller 2 unit property or a small SFH in this market. Its an appreciating area with an active rental market. Within 1 block there is a 2 flat with similar unit mix and GBA (albeit with only 1 building) and a SFH similar utility, size and finish, that closed for about the same.So sounds like it might not be legal... I wonder if you were real nice the assessor could give you some information. They stay open around here and can be a good resource. Also, another idea is check on which one is worth more if you are on the fence. Good luck and sleep on it cause it seems to help me figure out a situation better.
why is it not an ADU? Fannie Mae does not care what you call it. What does the city call it? If legal, then it is an ADU. If violates zoning, well there are some extra steps like having 3 comps with similar zoning issues, etc. It's all in the guide.Given the above, I advised the client of the situation and recommended the assignment should be for a 2 unit property. Client is adamant the subject "be viewed as a SFH with an ADU" (Maybe cuz they were unaware of the 2nd building?)
Hi Terrel: I agree... but you nailed it: Separate utilities, address, and rented. I have zero similar sales to show it is typical of the market... City calls it nothing; the 2nd structure is not even on the assessor's record (blt in 1866). Appraisers cannot order zoning certs... only ownership can.why is it not an ADU? Fannie Mae does not care what you call it. What does the city call it? If legal, then it is an ADU. If violates zoning, well there are some extra steps like having 3 comps with similar zoning issues, etc. It's all in the guide.
Whether a property is defined as a one-unit property with an accessory unit or a two-unit property will be based on the characteristics of the property,which may include, but are not limited to, the existence of separate utilities, a unique postal address, and whether the unit is rented....The appraisal report demonstrates that the improvements are typical for the market through an analysis of at least onecomparable property with the same use....The borrower qualifies for the mortgage without considering any rental income from the accessory unit....Much the same for FHA
An Accessory Dwelling Unit (ADU) refers to a habitable living unit added to, created within, or detached from a primary one-unit Single Family dwellingAn ADU is usually subordinate in size, location and appearance to the primary Dwelling Unit and may or may not have separately metered utilities or separate means of ingress or egress...The Appraiser may consider a Manufactured Home to be an ADU if it meets the highest and best use and FHA requirements.