guest quarters?

[drstetson]

assuming it has no separate meters for various utilities, would you just treat is as additional living area within the main unit and speak to the perceived utility of the additional kitchenette? I don’t see much value in a small two burner surface mount range with integrated sink...I mean all you need is a little work plumbing the sink and an outlet for the range.

 

[CANative]

Include it with the main living area and label it a guest suite.

Anon... give it up. What FHA is saying is that this is an HBU decision which is a decision the appraiser makes.

 

[Michael Tipton]

assuming it has no separate meters for various utilities, would you just treat is as additional living area within the main unit and speak to the perceived utility of the additional kitchenette? I don’t see much value in a small two burner surface mount range with integrated sink...I mean all you need is a little work plumbing the sink and an outlet for the range.

As others have stated, it is a case by case issue. Is the area in question part of the main dwelling with direct access to the subject's living area or does it have separate entries? Is it built to the same standards as the subject's living area (materials, quality, etc)?

 

[Mike Garrett RAA]

Intent...what is the intent? Is it for guests? Is it a "mother-in-law" apartment? Is it rented? Does it produce income?

Can you say..."Another fine reason not to do FHA appraisals?".

I would suggest two meters is a stong indication of a duplex rather than an ADU..but what do I know?

 

[CANative]

I would suggest two meters is a stong indication of a duplex rather than an ADU..but what do I know?

When you say "duplex" do you mean a two unit income property?

I think what's most important in these cases is the difference between the units. A very large house with a tiny additional unit has an HBU as an SFR with an accessory unit, regardless of the utility metering. Or two units on acreage.

 

[David Beasley]

I think what's most important in these cases is the difference between the units. A very large house with a tiny additional unit has an HBU as an SFR with an accessory unit, regardless of the utility metering. Or two units on acreage.

Not necessarily. I've had to do several appraisals where there was a larger, primary SFR and a smaller "accessory" unit. In both cases, the ADU was rented. I had to perform the appraisal on the 2-4 family form, which then forces the SFR to be treated as a "unit", just like the ADU. Oh, and those had separate power/water/gas meters BTW.

It really is case-by-case, there is no one-size-fits-all answer to an SFR with ADU, with or without multiple utility connections. It depends on the salient facts found onsite (utility connections), HBU, current use, allowed use, and to a limited extent, which underwriter will be reviewing the appraisal. I mean, the lot of us here at AF generally can't agree on anything - why should we expect reviewers and UWs to be any better when it comes to "being on the same page" even if we all have the same page to read from.

 

[CANative]

"The form made me do it!"


m2::icon_mrgreen:

 

[David Mescon]

"The forum made me do it!"


m2::icon_mrgreen:

0123456789

 

[Riick]

.......
It really is case-by-case, there is no one-size-fits-all answer to an SFR with ADU, with or without multiple utility connections. It depends on the salient facts found onsite (utility connections), HBU, current use, allowed use, and to a limited extent, which underwriter will be reviewing the appraisal. I mean, the lot of us here at AF generally can't agree on anything - why should we expect reviewers and UWs to be any better when it comes to "being on the same page" even if we all have the same page to read from.

You really have to use common sense and be sure that the FORM "dictated" doesn't make your analysis absurd.
I did an urban townhouse of some 5,800 sq.ft. a some years ago; there was a small apartment in the property, with separate utilities, rented at $650/mo.
High sale for 2 units at the time was about $400k, while a SFD of that size & condition, & in that location was easily worth $750k.
Was I supposed to devalue the property by hundreds of thousand of dollars because of the rental unit?
Was I supposed to adjust for the subject's extra 3,800 sq.ft. over 2,000 sq.ft. duplexes?
Or, was I supposed to use SFD sales of similar size, location & quality?

In that marketplace, any potential buyer would love to have that rental unit, if not as a rental, then as guest quarters, or maid's / au-pair quarters.
It was a SFD with an accessory unit - and seperate utilities be d@mmed.

.

 

[Mike Boyd]

Where did you find THAT silly rule? What about duplexes?

Actually, in this case I would include it in the GLA. I would mention that it has an additional small kitchen area....but so what? No value to the 2nd kitchen. What makes it an in-law unit? OP says it is accessible through the main living area.What if it is occupied by a son or daughter? As long as there is no functional obsolescence just consider it as part of the main living area. Try to find comps with similar room count and GLA.