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

[Lee Lansford]

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.

You need to hire a local competent appraiser who will (a) research the market and (b) analyze for the contribution of the casita as to value. If there are a number of such structures the task will not be impossible, but, not necessarily easy either. The result should be a reasonable range of dollars as to the contribution toward the market value of the property as a whole. BUT, let me ask: are such structures relatively common in your area?

 

[TheDean]

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.

thank you, that makes sense.

 

[BRCJR]

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.

You indicated Appraisers were all over the place... (Even appraisers are all over the place on this subject. Pretty frustrating.. Post 16)

Not one post opines a value, except your posts. Maybe the real estate agents have indicated such but none of the Appraisers on this thread have done so.

I stand by my assertion that you have received very consistent comments here.

 

[cnu691]

Yeah, it's mainly been the county appraiser looks to give it the most value and doesn't see it as functional obsolescence whereas a private appraiser will see the burden that a pool and a detached guest house can put on the value of a home when selling. It's a shame that it's all just a money grab to the county but it is what it is!

 

[TheDean]

You indicated Appraisers were all over the place... (Even appraisers are all over the place on this subject. Pretty frustrating.. Post 16)

Not one post opines a value, except your posts. Maybe the real estate agents have indicated such but none of the Appraisers on this thread have done so.

I stand by my assertion that you have received very consistent comments here.

That's fine, but you're wrong. If you read through this thread alone there are multiple different answers. There have been a few posting legit answers since your post, which are reasonable articulate answers. You however, have not added any value, feel free to remove yourself from the conversation. You put off the vibe of the type of appraiser that is part of the problem, not the solution.

 

[Tiffany Gibbons]

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..

So, would you want the $120,000 added to your tax appraisal? Or would you want what the market shows such an improvement would be worth in the market? Because, just like expensive swimming pools, buyers typically don't shop for that item with a house included. They shop for a house first and whatever is extra is just that, an extra that the appraiser would have to do research in your market to prove what the "casita" extra is bringing based on similar homes with similar "casita", teeny house, she shed, etc.

 

[BRCJR]

That's fine, but you're wrong. If you read through this thread alone there are multiple different answers. There have been a few posting legit answers since your post, which are reasonable articulate answers. You however, have not added any value, feel free to remove yourself from the conversation. You put off the vibe of the type of appraiser that is part of the problem, not the solution.

Sorry my earlier comment added no value.

"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".

You are free not to respond to my posts.

 

[JTip]

Even appraisers are all over the place on this subject. Pretty frustrating..

GLA is one line item on the grid. Detached guest house gets it's own, just like the finished basement, porch and pool.

 

[sputnam]

It is certainly livable square footage. It would not just be lumped together with the square footage of the main house for a grand total.