Duplex or ADU

[Alpenglow]

I accepted an appraisal for a property that was listed as a single-family residence. When I arrived for the inspection there was the 1,600 square foot home listed on public records and a new 4,000 square foot home. This property is on 4 acres. The HBU would almost certainly be to subdivide the property into two separate lots with a home on each site. If I were to appraise this property as-is should it be appraised as a multi-family because it has two residences or as a single-family home with an accessory dwelling unit? Is there a maximum size that a building can have to be considered an ADU. There are no comparables that I can see in my market area that have two homes on the same property. ADU's in this market are typically small cabins or basement apartments.

 

[shrubberyvaluation]

I would inform the client and let them know what you observed during inspection and if they don't cancel ask for a fee increase. Then go through HBU.

 

[J Grant]

I accepted an appraisal for a property that was listed as a single-family residence. When I arrived for the inspection there was the 1,600 square foot home listed on public records and a new 4,000 square foot home. This property is on 4 acres. The HBU would almost certainly be to subdivide the property into two separate lots with a home on each site. If I were to appraise this property as-is should it be appraised as a multi-family because it has two residences or as a single-family home with an accessory dwelling unit? Is there a maximum size that a building can have to be considered an ADU. There are no comparables that I can see in my market area that have two homes on the same property. ADU's in this market are typically small cabins or basement apartments.

Imo, the newer 4000 sf home is now the main dwelling with the 1600 sf house the ADU. Inform lender of it, research zoning and HBU, it sounds to me like a larger, new house and the original smaller house would serve as the ADU . BUT....you say you also have a possible HBU to subdivide the property into two lots each with a home on each site.... is each existing house on a divisible site , or does the 4000 sf newer home straddle the lots ?,

 

[Tom D]

i doubt you have comps for a 2 family, not that would affect you thinking. by thinking, i mean give it back. too many issue traps to fall into when the state comes calling.

 

[ZZGAMAZZ]

In these parts of the world throughout SoCal, a few jurisdictions here-&-there permit two SFR's.

 

[Mark K]

The HBU would almost certainly be to subdivide the property into two separate lots with a home on each site.

I think that answers your question. If this is for mortgage lending, contact your client for instructions.

I appraised a 40 ac. tract with a 10 ac. lake and Dad built 3 nice additional custom homes around the lake, one for each kid. My HBU said to split them into separate lots and I appraised each home accordingly on hypothetical 3-5 ac. tracts. This was for a Trust, not for lending purposes.

Within a few years, kids started getting divorces, moving out of state, etc. and Dad split the original site and sold them individually.

 

[Terrel L. Shields]

Is there a maximum size that a building can have to be considered an ADU. There are no comparables that I can see in my market area that have two homes on the same property. ADU's in this market are typically small cabins or basement apartments.

It is a large home with an ADU (just my opinion) regardless the lack of comparable properties. Fannie Mae only says that the ADU is subordinate to the main dwelling. They don't set actual size limits. So is it regulated by the county or city? That is, is there regulation to limit the use to family only or can it be rented out?

What is required for accessory dwelling units (ADUs)?

selling-guide.fanniemae.com

You can go back in time, or further out (a marginal option I assume in AK) for comps. Or the easy thing is to call the lender and decline the assignment or ask for a substantial increase in fee...like double because you are going to spend twice the time on it you would for a simple house on 4 acres.

 

[Mark K]

It is a large home with an ADU (just my opinion)....

But is it a home with ADU if...

The HBU would almost certainly be to subdivide the property into two separate lots with a home on each site.

 

[Terrel L. Shields]

But is it a home with ADU if...

Good question but "as is" it is 4 acres with 2 dwellings. HBU does not ask if the property can be made into something else as the "ideal" use, rather asks which is the most valuable - "as is" or "as if vacant". Isn't that the case?

 

[J Grant]

It's in Alaska...making it a dwelling with a very big outhouse