FHA And Accessory Dwelling Unit (adu)

[Mike Kennedy]

Wayne, Tim's last sentence is likely the best advice you, or any Appraiser including me and everyone else on AF will ever get. Don't take it personally - professional wisdom matters.

 

[Terrel L. Shields]

would have to prove it via paired sales and if I conclude there is no market addition for it then there is none.

Paired sales are not the only way to set contributory values. If there is absolutely no sales, I'd either apply depreciated cost new to the ADU or, rented or not, apply some proxy rent using a multiplier...the latter as support for the former, as I would not weight the income method if it isn't leased.

Adding the ADU to the GLA would, in my opinion, lead to a misleading report. And in Maryland, I would find it difficult to believe there is no market data for an ADU in the larger market area. Go further out or further back in time. There is no time limit for supporting adjustments, only the comparables themselves.

lease quit Trolling me, honestly, you have never offered any input that was helpful.

Tim may be abrasive, but his advice is not necessarily off-base. And, yes, it could save you at trip to the state board.

 

[timd354]

I would expect nothing less from you Timed354, you have been trolling me for years. As I stated when I posted. "Not looking for critics on the different methods". I just wanted opinions from my colleagues, I was not looking for a lecture. There's nothing wrong with getting other opinions. No one knows everything, I certainly do not, which was why I already did the proper diligence needed to make sure I had all of the information I needed. Posting on this forum was one of many outlets in my data gathering. I have all the information I need from consulting with the FHA resource center. You really need to stop with the lecturing and do more helping. If your not going to help then keep you comments to your self my fellow Maryland competition. Please quit Trolling me, honestly, you have never offered any input that was helpful.

Trolling you? Huh? You posted something and I responded to it by expressing my opinion, which is hardly trolling. I am of the opinion that your your comments and questions on your thread demonstrate that you lack the requisite knowledge and experience to complete the assignment that you were referring to and I expressed the opinion that you should wither pair up with someone who has more experience or walk away from this assignment. If you don't want to hear it, that's just too bad, but you should know that this is the same opinion that I would express to anyone whose questions and comments demonstrate a similar lack of knowledge needed for a particular assignment. By the way, some of the best advice I ever got from more experienced appraisers was about when to pair up with someone more experienced and when to walk away from an assignment, but you obviously know better.

 

[Non Sequitur]

I am working on the permits now, it appears after further research they converted the 2 car garage into a full additional dwelling with full kitchen, 2 bathrooms and 3 bedrooms.

Wow, that was a large garage.

I can not find any other home with a ADU that sold only a listing. I do believe it should have contributory value but I would have to prove it via paired sales and if I conclude there is no market addition for it then there is none.

The lack of MLS data does not equal "no contributory value." This is going to be a tough one if the loan is GSE, everyone wants to see all features bracketed, honestly I would withdraw if the client is a PIA. If it's a good client I would involve their QC staff, develop either an income or cost base (or both) for an adjustment AND grid the listing. Also if you're lucky the listing may have sold in the prior few years, if it did run the numbers and mention the data in your reconciliation.

As far as the sketch, sketch both but do not include the ADU in the main GLA.

 

[bnmappraisal]

Knowing when to walk away from an assignment or when to pair up with someone with more skill and experience is something that all appraisers need to do in certain situations before they end up in front of the state board.

Just thought worth repeating... (Not aimed at you Wayne (OP) by any means, but I think many of us forget this is an option sometimes)

 

[Wayne Henry]

Trolling you? Huh? You posted something and I responded to it by expressing my opinion, which is hardly trolling. I am of the opinion that your your comments and questions on your thread demonstrate that you lack the requisite knowledge and experience to complete the assignment that you were referring to and I expressed the opinion that you should wither pair up with someone who has more experience or walk away from this assignment. If you don't want to hear it, that's just too bad, but you should know that this is the same opinion that I would express to anyone whose questions and comments demonstrate a similar lack of knowledge needed for a particular assignment. By the way, some of the best advice I ever got from more experienced appraisers was about when to pair up with someone more experienced and when to walk away from an assignment, but you obviously know better.

So following your logic anyone that asks a question in the forum should pair up with another appraiser. What a joke. Again, your comment to pair up with a more experienced appraiser is not helpful when a case study is posted. A better response would be, this is what I would do if I had that problem .... And for the record you have done this before and it does not make sense to me so that is why I posted that you were trolling me and I private emailed you as well to put you on notice. If you never comment on my post again it would be a great day. I am looking for constructive opinions and methods from my colleagues not what your input. Of course every appraiser knows if they can not complete an assignment they should not take it or get help from a colleague. That is common knowledge. This is all I will say on this from you. I will read the other more insightful post regarding this matter. I bid you a good day sir.

 

[Mr Rex]

There probably are some sales with ADU or similar amenities that would give you some idea of the contributory value of the ADU. Its just going to take alot of manual searching reading the agent remarks etc of each potential comp and going back several years if necessary and going further distances than you normally would. Throw the guidelines out the window and go back in time as far as necessary and as far geographically until you find those kernels of data that you can use to support your contributory value opinion. The suggestion to give it no value due to the lack of readily available market data is totally unacceptable appraisal practice, and likely one of the reasons you have gotten some of the responses you ave received.

 

[bnmappraisal]

Adding the ADU to the GLA would, in my opinion, lead to a misleading report.

I agree. I have a good number of ADU's in my area; actually just inspected one yesterday! This was an attached, but many times I run into what you describe, a detached unit. Sometimes garage conversion, sometimes over the garage.
There have been many good posts, so I won't add too much, but I will reiterate, I agree in NOT combining the Living area of both dwellings into one

 

[bnmappraisal]

Its just going to take alot of manual searching reading the agent remarks etc of each potential comp

I generally charge extra for ADU properties for this reason. Even though I have a decent number in my market, it still takes a lot longer to research and VERIFY the info b/c agents can be pretty vague in their descriptions and/or the GLA (many times I run into the agents combining the GLA of the subj AND the ADU in the total GLA which takes longer to determine!)

 

[timd354]

So following your logic anyone that asks a question in the forum should pair up with another appraiser. What a joke. Again, your comment to pair up with a more experienced appraiser is not helpful when a case study is posted. A better response would be, this is what I would do if I had that problem .... And for the record you have done this before and it does not make sense to me so that is why I posted that you were trolling me and I private emailed you as well to put you on notice.
If you never comment on my post again it would be a great day. I am looking for constructive opinions and methods from my colleagues not what your input. Of course every appraiser knows if they can not complete an assignment they should not take it or get help from a colleague. That is common knowledge.
From your posts in this thread I would say that you apparently don't know any better

This is all I will say on this from you. I will read the other more insightful post regarding this matter. I bid you a good day sir.

It is no joke. When an appraiser posts a a question and comments regarding an appraisal that they are performing and the questions and comments indicate that the appraiser lacks the knowledge and competence to perform the assignment (which is the case in this thread IMHO) the most important and constructive advice that I or anyone else can give is that the appraiser should pair up with a more experienced appraiser or walk away from the assignment before they end up on the wrong end of a complaint made to the state board. If you don't find that constructive, then so be it...you are free to ignore anything I have to say.

Just an observation: If an appraiser has to ask substantive questions on an internet forum about the methodologies that should be employed in order to properly appraise a particular property (including something as basic as whether or not to count the area of a detached accessory unit in the subject's GLA), then it is very doubtful that the appraiser is competent to appraise that particular property. "Because someone on the AF told me to do it that way" probably not a great defense if the state board questions the appraisal.