Google Functional Obsolescence, Superadequacy (Over-improvement for a neighborhood).
IF the appraisal report included a discussion of the comparable search parameters (location, neighborhood, quality and size and amenities of possibly competitive local homes, AND an extended search for possible comparables in nearby competing neighborhoods.......AND an extended TIME search within your neighborhood ( i.e. 12-60 months for example)
- which yielded NO directly competitive other sales with similar quality and additional amenties, then it should have also included a discussion on F.O.S. in support of the appraiser's conclusion that the accessory dwelling and perhaps the "brick" construction (former builder's home) had no current additional contributory value.
p.s. It is common for Builders of new subdivisions to erect a "flagship" demo home with all the "bells & whistles" first - to gauge buyers' reaction to:
1. location (including view and school district, possibly commuter access etc.),
2. style,
3. quality of construction, exterior and interior finish materials etc.,
4. above and below grade utility,
5. parking capability, view, porches, decks, fireplaces, inground pools, etc. AND/or Accessory Dwelling Units.
Market demand results in the actual homes built in a subdivision. Sometimes, ALL the homes are Excellent Quality with the "bells & whistles" on view in the demo home. Sometimes SOME of the new homes have them. Sometimes, the local market (buyers) REJECT the upgraded features and buy more conventional, average-good quality homes with NO additional amenities save perhaps a deck and entry porch.
IT DEPENDS.
