• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

"deal Killer" No Value Added For Permited Guest House

Status
Not open for further replies.
I've personally never seen a detached ADU not have contributory value.

Neither have I... except when the H&BU of the property, as-improved, is not as-is or when the ADU is not legally permissible (which isn't the case here).
 
How can you compare a complete house to a pool, that's what people are shopping for. My wife had a pool at her house and I would fill it in with dirt myself before I had to deal with that headache. That's like saying, my house has a motocross track in the backyard and I am complaining there is no value on the appraisal. I can assure you, 99.9% of the people that have seen my house, like the guest house, no love the guest house, it is handy if a family member is being taken care of, a teenager who needs or wants their privacy or friends spending the weekend. The electric bill runs $15.00 a month when no one is staying there. I would think that is a bargain just for the small chance you need an extra place for someone to stay, also it keeps you from having a higher a/c or heating bill because you have 600 sq. ft. less to cool or heat, instead of cooling a 2600 sq. ft. all summer, you only cool 2,000 sq. ft. All I can say, is when I purchased this house, I was single, my son lived in the guest house, I lived in the main house, he had his privacy and I had mine. He would have his friends over and I was never bothered as I would have been if they were in the room next to me. There are a lot more positives to having a complete spare house than a pool. Another thing to consider is people commonly add rooms over their garages, I would be willing to bet any of them would take having a separate house built with a full kitchen and bathroom over a space added after the house was built. As for taxes, they are the same, 2,000 sq. ft. plus 600 sq. ft. in two houses or 2,600 sq. ft. in one house, they are both finished sq. footage. Also, I don't think building separate guest houses is common because it is a lot cheaper to build one house than it is to build to completely separate houses.
 
ADUs are different from other "amenities" because they are living units. It may be atypical for the simple reason that they can't be built anymore, or exceedingly difficult to get approvals to build. I've personally never seen a detached ADU not have contributory value.

I've seen it. The main house was so big there was no need for it.
 
ADUs are different from other "amenities" because they are living units. It may be atypical for the simple reason that they can't be built anymore, or exceedingly difficult to get approvals to build. I've personally never seen a detached ADU not have contributory value.

I've seen it.
How can you compare a complete house to a pool, that's what people are shopping for. My wife had a pool at her house and I would fill it in with dirt myself before I had to deal with that headache. That's like saying, my house has a motocross track in the backyard and I am complaining there is no value on the appraisal. I can assure you, 99.9% of the people that have seen my house, like the guest house, no love the guest house, it is handy if a family member is being taken care of, a teenager who needs or wants their privacy or friends spending the weekend. The electric bill runs $15.00 a month when no one is staying there. I would think that is a bargain just for the small chance you need an extra place for someone to stay, also it keeps you from having a higher a/c or heating bill because you have 600 sq. ft. less to cool or heat, instead of cooling a 2600 sq. ft. all summer, you only cool 2,000 sq. ft. All I can say, is when I purchased this house, I was single, my son lived in the guest house, I lived in the main house, he had his privacy and I had mine. He would have his friends over and I was never bothered as I would have been if they were in the room next to me. There are a lot more positives to having a complete spare house than a pool. Another thing to consider is people commonly add rooms over their garages, I would be willing to bet any of them would take having a separate house built with a full kitchen and bathroom over a space added after the house was built. As for taxes, they are the same, 2,000 sq. ft. plus 600 sq. ft. in two houses or 2,600 sq. ft. in one house, they are both finished sq. footage. Also, I don't think building separate guest houses is common because it is a lot cheaper to build one house than it is to build to completely separate houses.

If the appraiser cannot prove a market value he cannot make an adjustment. Period. And your last statement demonstrates the point. People do not like them if given a choice
 
How can you see a house with no address, your good, so you are saying people don't like are want a guest houses. I'm not saying my house even comes close to a high end house but why do so many of the expensive houses have guest or separate living quarters.
 
You will need a copy of the report before you turn it in to the state appraisal board.

Read it front to back, twice and then report your results to the forum.

Without it, you are just assuming too many things.
 
How can you see a house with no address, your good, so you are saying people don't like are want a guest houses. I'm not saying my house even comes close to a high end house but why do so many of the expensive houses have guest or separate living quarters.

Based on your earlier neighborhood description, they ("expensive houses") are most probably in a significantly superior market-segment which is not competitive with, nor comparable to yours. Location, Location, Location - matters.

OP's post 13 "I purchased the house from a builder that built several houses in this waterfront neighborhood and he built this house and the guest house for his mother in law to live in at the time."

Builders routinely "test balloon" a new subdivision with the largest, higher/highest quality Model home available to all potential residents. Given that NO other buyers opted for the Builders' home/model with it's superior quality and amenities........ the LOCAL Market (actions of other Buyers in your neighborhood) has spoken loud and clear.
 
Last edited:
The builder built the house for him and his situation having to take care of his mother in law, he lived in this house for 5 years then built a house on the lake where he lived until he passed away about 3 years ago. He came by here a couple of times just to see how things were going.
 
To the OP, we, as appraisers, have to be able to provide some sort of proof for our adjustments/opinions. I, personally, find it hard to believe that your guest/in-law house does not have any value. But that being said, it is possible. I don't know your market and don't pretend to, but I would think there would be some value in an ADU. I would see about getting some additional commentary regarding why/why not there is no value given
 
The builder built the house for him and his situation having to take care of his mother in law, he lived in this house for 5 years then built a house on the lake where he lived until he passed away about 3 years ago. He came by here a couple of times just to see how things were going.

Refer back to the post above yours.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top