Fannie Mae Adu

[undergroundPOP]

I'm appraising an SFR that has a permitted, detached guest house. The only problem is is that there is no "functional kitchen" as it only has a sink, countertop space for a toaster oven and mini-fridge. How would you typically go about valuing this type of secondary improvement in FNMA related appraisals?

 

[Tim The Enchanter]

Search for a comp with something similar. Then expand the search when you don't find it.

 

[Dublin ohio]

you might try finding a detached garage or other building that has been finished into a "man cave" or something similar.

 

[Tim The Enchanter]

This is where I have to go through and read the listings one at a time and read them looking for that comp.

 

[Tawfik Ahdab]

If it lacks a true range/oven it doesn’t have a real kitchen and if it doesn’t have a real kitchen it’s not really an independent living unit or true ADU

When I check with the local building or permitting authority whether it is legal to have a second living unit on a particular parcel (this happens mostly when such units are not supposed to exist at all) The first question I usually get is whether the second, secondary, ancillary,mother-in-law, accessory, etc. unit has a true kitchen in the form of having a range/oven. If it does then it has a second kitchen. And that determines whether the second unit is considered to be independent and in turn whether it’s legal.

But again this depends on your jurisdiction. Essentially, it’s a highest good and best use question to be followed by a highest and best use answer.

 

[glenn walker]

Not a big deal -some areas -City-County dont want permanent cooking facilities in there ADU and many use these as guest houses or over-nighters for relatives and often a microwave- hot plate and toaster is sufficient the Cost to cure if someone wanted a range and oven is typically less than $2,000. I would not make a big issue out of it because most so called ADU or granny flats are in detached garages with no permits and occupants use microwaves-hot plates and a barbecue located outside.

 

[spittman]

Fannie says an ADU has to have a fully functional kitchen and bathroom. As long as it's not some cheap busted up microwave, I think it is fine, but that's just my opinion. You have to decide if yours is fully functioning and looking at what the market accepts.

 

[Restrain]

Simple answer. Describe what you have, essentially a guest quarters without a functioning kitchen. Find a comp, or go back in time to find a similar comp and analyze it to find the contributory value. Just say what you are doing and support your reasoning.

 

[Riick]

Simple answer. Describe what you have, essentially a guest quarters without a functioning kitchen. Find a comp, or go back in time to find a similar comp and analyze it to find the contributory value. Just say what you are doing and support your reasoning.

BINGO ! You have a SFD with guest quarters, not a SFD with ADU.

 

[J Grant]

I'm appraising an SFR that has a permitted, detached guest house. The only problem is is that there is no "functional kitchen" as it only has a sink, countertop space for a toaster oven and mini-fridge. How would you typically go about valuing this type of secondary improvement in FNMA related appraisals?

The acid test for what this detached buidlign is, aka its HBU is the zoning, does subject zoning permit a stove installed ? Since it is the stove/range that seems to be the dividing line about legally permitted kitchens.

If your subject building is permitted for a kitchen and range but the range has not been installed and kitchen is minimal finish, then I would explain, call it an ADU, and adjust the comp ADU's which have better kitchens and ranges installed as a line item adjustment , provide a cost to cure ( install range, a row of cabinets, full refrigerator, 5k, for example ).

But, if subject zoning is just for a guest house or detached building but not zoned for ADU, then you have a guest house with a light food prep area