Detached bedroom,guesthouse,shop?

[darrenr]

We purchased our property in Fresno, Ca. in 05, it needed lots of cosmetic work. It was built in 57. The place came with a 500 sq. ft. shop.{so called} when looking at the property we noticed the carpet on the floor of the shop but really couldnt see much else because the previous owners used this space for storage/junk. I have finally reached that area for cosmetics and what ever else it may need. This so called shop has front and back doors, heat/air,phone,and 2- 6 ft.sliding windows, one looks into the breezeway and the other has a view of the pool. The walls/ceiling are textured. It has no bathroom.Looks like someone at some time took out a closet. You can see evidence on the wall and the paint/texture.{THIS IS CLEARLY NOT A SHOP} It is connected to our 500sq.ft breezeway that is connected to our 500 sq.ft. garage. This long structure is detached from our home by about 6ft. My questions are...when Im finished with this, will it then be considered livable space? Do I need to put a closet in it? we want this as our forth bedroom/guest house.Will this increase our value when finished? Or will you appraise it as a detached structure and give me credit as such? Am I waisting my time/money doing this project? How can I get the best bang for my buck if and when we go to sell? Did the listing agent or previos owners think they could get more money for it as a shop? Someone dropped the ball on this one!!

 

[Otis Key]

Specific answers to your questions I cannot provide (not sure others can either) due to lack of specifics and geographic competency. However, the following is from ANSI Z765-2003 and it might help you some.

Finished Areas Connected to the House​

Finished areas that are connected to the main body of the house by other finished areas such as hallways or stairways are included in the finished square footage of the floor that is at the same level. Finished areas that are not connected to the house in such a manner cannot be included in the finished square footage of any level.​

My BOLDED accent.​

 

[darrenr]

so a guest house wouldnt be consitered livable square footage even though it is finished and livable? I understand it can not be added to the sq. footage of the main house.....but, wouldnt it be consitered additoinal detached sq. footage? How do appraisers appraise a guest house??

 

[Jill Kinnaird]

Wish you were here in Cincinnati with that question! Appraisers don't just value property. They provide the data and information you're in need of. Call around your local area and find an appraiser who has been in the business a long time. I'm sure they would be happy to investigate the possibilites of becoming a hired consultant. We would initially have a face to face meeting, on site, charging a flat rate or per hour fee payable at time of arrival, to discuss what you need. After some initial research we would present a written estimate of the cost and description of the job to be performed along with an engagement letter. If the client wishes to proceed with the indepth consultation they send back the signed engagement letter.

 

[Walter Kirk]

I'm interested in the definition of shop. Is this a personal workshop or a commercial shop? Does the zoning allow for commercial uses? Is a commercial use grandfathered?

If you want to make this a guest suite you should probably add a bath room and kitchen or wet bar. A closet would also be useful. If the guest suite is not physically connected to the main house it can not be considered part og the GLA, however an appraisal will consider the value of the guest structure.
Remember a guest suite or any other improvement only has value if the local market consists of buyers willing to pay for them.

 

[Mike Kennedy]

Accessory Buildings-Not GLA for Residence

so a guest house wouldnt be consitered livable square footage even though it is finished and livable? I understand it can not be added to the sq. footage of the main house.....but, wouldnt it be consitered additoinal detached sq. footage? How do appraisers appraise a guest house??

Considerations:

a. original "shop" may have been built as an unfinished "workshop" or "detached original garage" with or without a Building Permit/ Certificate of Occupancy for THOSE uses. (assumes your local municipality requires BP/CO). Subsequently, prior owner (or owners) converted it into finished accessory space without a building permit or certificate of occupancy - only your local county, town, village, city Building and Zoning Department (NOT Assessor) can confirm sale. Typically, when this has occurred, MLS listings refer to the Improvement under the original description per muni. records. One may also see comments on listings "ideal for future inlaw use", "COZY possible apartment for Mom", or "other finished uses possible"....... Listings, unfortunately in many states are NOT required to report the current LEGAL use of a property.

b. assuming the above is NOT the case, and all's well in C.O. land...... the detached dwelling per Ansi and Standard Mortgage Lending Guidelines cited above apply. Building & Zoning will also advise as to the approved, legal, uses possible for such an improvement (consideration necessary to determine possible renovation and continued/future use).

c. re: market value for such an improvement. opinions of contributory value are gleaned from the best available Market Data - i.e. closed, contracted sales, actively listed properties where the data is confirmed by an Appraiser. The LOCAL market indicates buyer reaction to ALL aspects of a subject - including ancillary improvements such as you describe. That data may indicate similar improvements are common, in demand, or virtually non-existent (over-improvement).:icon_idea:

d. keep in mind .....COST of an improvement has NO bearing on market value. The improvement may return more than, equal to, or less than (usually the case on items like you describe) than the cost.

e. recommendation: hire an Ethical, Experience, Geo-Competent, Certified or Licensed Real Estate Appraiser and find out what the CURRENT Market indicates. (this often changes depending on WHEN).

 

[Ken B]

I recently moved to southern FL which has spanish architectural influences such as those found in CA. "Courtyard" homes are pretty common here and one example I saw when house hunting has a "front door" leading to a courtyard large enough for a decent sized pool. Connected by a breezeway area (which is entered through the "front door") to the main house is a bedroom/bath combo of about 350 sf. This is a standard design in this and similar subdivisions. It seems it is typical that the main house and this bedroom/bathroom space, which is connected by a breezeway and which shares common access to the courtyard, both be considered in GLA. The space is perfect for an adult child, parent, guest, home office, etc. Arguments could be made either way as to whether to consider your space in GLA. Even if it is not counted as GLA, if it is livable space, it should certainly add to value more than would a simple storage room. As a previous poster replied, "it depends" and the answer would best be provided by an experienced local appraiser.

 

[Appraisal Coach]

Nice problem to have..

My advice, pull the building permit record to see what it was and when it was built, and if it was built legally before you fix it up.

Fix it up if it makes sense for you, Seems more like a "quality of life decision," not an appraisal issue. Hard to say if its the right move economically speaking.

Spend anytime on this board and you will see varying opinions from appraisers, There are rules for these things, but regrettably they are not universally adhered to, thus, I wouldn't recommend you base your decision on an as yet unknown future appraisal as one may call it living area, another may not.

The reality is if it seems like an improvement to you, it will likely seem like an improvement t o a future buyer.

Thanks for having such a high regard for the opinion of the appraiser!

Good Luck

Ed
Appraisal Coach