Detached Guest House - Do you count it as liveable square footage

[cnu691]

nice feature if you have a similar comp. if you don't, underwriter goes insane on the adjustment.

This is what I've run into... 2 extremes on the opposite end!

 

[glenn walker]

So when they raise your tax assessment based on the guest house being part of the main dwelling unit (sqft and 1 full bath) can you try and argue that? I feel that's an extreme gray area to the benefit of the county's wallet, is it not?

No Tax Assessors use whatever results in highest tax

 

[Terrel L. Shields]

They should be treated separately and if you appeal you should (likely) be able to argue that the quality of the ADU (accessory dwelling unit) is lower than the quality of the house and should be treated differently (cheaper.) You can also argue that a home with an ADU has a marketability problem (what appraisers call functional obsolescence) because the pool of buyers is much lower if there is a second home on the property.

 

[shrubberyvaluation]

So when they raise your tax assessment based on the guest house being part of the main dwelling unit (sqft and 1 full bath) can you try and argue that? I feel that's an extreme gray area to the benefit of the county's wallet, is it not?

You can try to argue anything. You might have a harder time arguing when prices are increasing.

 

[Tiffany Gibbons]

You can try to argue anything. You might have a harder time arguing when prices are increasing.

Bear in mind, they will look at sales as of January 1st of the tax year if you go to the assessor. They have the option to raise your appraisal too. No, fee appraisers would count it separately as a guest house if it it is not connected to the main house.

 

[TheDean]

I really wish there was a more standard answer for this. I'm considering having my elderly mother move in to my home. I want her to have her own space. I am considering building a guest home that's approximately 600 sqr foot. I've asked about 10 different realtors and developers. Most give different answers from, "It will only count as a line item like a pool" to it will give the same value as adding on an attached mother-in-law suite. " or "most appraisers will only add about $15k value to the appraisal." A 600 sqr ft casita costs about $120,000 to build in my area and it seems absurd that it doesn't add value for no solid reason. Even appraisers are all over the place on this subject. Pretty frustrating..

 

[BRCJR]

I really wish there was a more standard answer for this. I'm considering having my elderly mother move in to my home. I want her to have her own space. I am considering building a guest home that's approximately 600 sqr foot. I've asked about 10 different realtors and developers. Most give different answers from, "It will only count as a line item like a pool" to it will give the same value as adding on an attached mother-in-law suite. " or "most appraisers will only add about $15k value to the appraisal." A 600 sqr ft casita costs about $120,000 to build in my area and it seems absurd that it doesn't add value for no solid reason. Even appraisers are all over the place on this subject. Pretty frustrating..

Actually, I think the responses you have received are very consistent. The ADU can and would be valued just not in the same manner as the "parent" dwelling. that doesn't mean it could not have similar value per square foot.

 

[TheDean]

Actually, I think the responses you have received are very consistent. The ADU can and would be valued just not in the same manner as the "parent" dwelling. that doesn't mean it could not have similar value per square foot.

I'm sorry buy no, they are not. Like any person who is wise with their money\investments I am trying to figure out the appraised value after the addition. I understand an exact value can not be given now, but there is a huge difference between $0, $1500 and "the same value as adding the footage to your house". or anything in-between. I'm not lookin to invest $100k for a $15k return.

 

[Basically Rectangular]

I really wish there was a more standard answer for this. I'm considering having my elderly mother move in to my home. I want her to have her own space. I am considering building a guest home that's approximately 600 sqr foot. I've asked about 10 different realtors and developers. Most give different answers from, "It will only count as a line item like a pool" to it will give the same value as adding on an attached mother-in-law suite. " or "most appraisers will only add about $15k value to the appraisal." A 600 sqr ft casita costs about $120,000 to build in my area and it seems absurd that it doesn't add value for no solid reason. Even appraisers are all over the place on this subject. Pretty frustrating..

The issue is that you have to be able to prove that a buyer would pay $X for a detached guest house. It is not a standard feature in most markets, and because of that the contributory value can have a wide range as the comparable sales are limited, and often very different from each other (and the subject house).

While the value of a guest house might be the same per square foot as the main dwelling, I often see guest houses as having a significant decrease in value per square foot. That is mostly because of the lack of similar sales, and also the fact that in a residential property they are secondary in use and utility to the main house. If they were popular, or if they gave a return similar to the main dwelling, then builders would include them in new construction builds. But since builders are not in the game to lose money, they don't spend $120,000 on something that may only return $50,000 (just a random number) based on the needs of the market.

 

[Lee Lansford]

I really wish there was a more standard answer for this. I'm considering having my elderly mother move in to my home. I want her to have her own space. I am considering building a guest home that's approximately 600 sqr foot. I've asked about 10 different realtors and developers. Most give different answers from, "It will only count as a line item like a pool" to it will give the same value as adding on an attached mother-in-law suite. " or "most appraisers will only add about $15k value to the appraisal." A 600 sqr ft casita costs about $120,000 to build in my area and it seems absurd that it doesn't add value for no solid reason. Even appraisers are all over the place on this subject. Pretty frustrating..

The one and only correct response to your question is that it ("600 SF casita") will contribute to market value based upon what similar structures have contributed in the sale of other properties.