"deal Killer" No Value Added For Permited Guest House

[suzuki4444]

I have a question about the appraisal that was done on my house in Montgomery County, Texas. I have
a 600 sq. ft. guest house (permitted) with an oversized garage (640 sq.
ft.) attached with a complete kitchen and full bathroom all brick that
was built when my house was built using the same materials as the main
house which is 1950 sq. ft. but the appraiser is giving the guest house
a 0 $ value. Both houses are on separate electric meters. The homes were
built in 1997 and I have to insure the guest house at $118k and the main
home at 210k. I would like to know if there is anything I can do to have
this added to my appraisal. I would think it adds at least as much value
as a closet. I also have a contract on my property which is
going to fall through. There are no other homes in this neighborhood
that have a self contained guest house so there are no comps to use, also both houses
have been completely updated. Can anything be done. Thank you.

 

[J Grant]

Speak to the lender of your concern, most lenders have a recondiseration of value process where owners can submit concerns or alternate sales the appraiser did not find.

 

[suzuki4444]

Speak to the lender of your concern, most lenders have a recondiseration of value process where owners can submit concerns or alternate sales the appraiser did not find.

I would think that if the lender would look at the pictures that were taken by the appraiser and would see that the guest house was built as well as the main house with the same materials, it in no way detracts from the value of the property. It is a complete home which is all brick, same as the main house. When the house was built this was made for his Mother in law to live in which has become common over the last few years. People are taking care of older family members so I would think it would be a big positive in todays market.

 

[Vermonter]

I would think that if the lender would look at the pictures that were taken by the appraiser and would see that the guest house was built as well as the main house with the same materials, it in no way detracts from the value of the property. It is a complete home which is all brick, same as the main house. When the house was built this was made for his Mother in law to live in which has become common over the last few years. People are taking care of older family members so I would think it would be a big positive in todays market.

Did the appraiser comment about the guest house? Have any comparable sales with guest houses?

 

[Randolph Kinney]

The homes were built in 1997 and I have to insure the guest house at $118k and the main home at 210k.

The insured value is based upon the cost approach to market value (without the land and foundation, things that don't burn). Lenders lend on the direct sale comparison approach to market value.

However, did the appraiser have a cost approach as part of the appraisal report?

The appraiser should have gone back in time to find homes with guest houses that sold and use adjustments over time to extract the current value to show a market value of such amenity.

Or maybe a modified depreciated cost approach for the contribution to value for the guest house.

 

[hastalavista]

Question #1: Does the appraisal identify and describe the guest house?
Question #2: Does the appraisal explain why a permitted 600sf guest house has no contributory value in the market?

 

[Randolph Kinney]

If you know of past sales of homes that had guest houses, make a list of them and ask for a reconsideration of value based upon market evidence that these properties do exist and have value.

 

[suzuki4444]

Question #1: Does the appraisal identify and describe the guest house?
Question #2: Does the appraisal explain why a permitted 600sf guest house has no contributory value in the market?

Thank you for getting back to me, The appraisal was done 07/10/15, a week and a half ago, I haven't seen the appraisal, it was suppose to be done by 07/15-last Wednesday, all that I have heard is that it has gone to management because the guest house was given a 0 $ value and the appraisal was done only by the main house so it wasn't even close to the contract price. There are no other houses in this subdivision that have a stand alone guest house to draw comps off of. I never saw the written appraisal, I was here when the gentleman was doing the appraisal and know he took pictures, also he drove about 70 miles from the other side of Houston so he doesn't live in this area, I don't know if that matters.

 

[Terrel L. Shields]

Question #1: Does the appraisal identify and describe the guest house?
Question #2: Does the appraisal explain why a permitted 600sf guest house has no contributory value in the market?

If the answer is no to either one, then send the report to the state appraisal agency with a complaint.

 

[Mike Kennedy]

Conjecture prior to actually reading the completed report is a fruitless endeavor.