Help Needed

[Mike Kennedy]

There are profitable assignments and then there are "sink holes" with major potential liability. Bill the Client for time served ($ x hours) and walk away.

 

[J Grant]

Oy veh caramba...what a nightmare , but if this is a good client they need you to finish it. To sum up, this is a SFR with a large detached 2 story biding consisting of a garage and living area on one level with a bath and a second level living area sf with a second bath. No kitchen or kitchens and from what you post county does not allow it. What distinguishes an ADU is it has a kitchen , particular an installed stove.

Can an owner buyer illegally use these spaces as rentals and put a fridge and hot plate in each level? Unless building inspector finds out, Yeah...but if that it is not the legal use (rental units with cooking facilities ) then we can't value it as such since HBU has to be legal use.

What is legal use of this building as is ? Guest or inlaw suites , bedrooms for teens/extended family, workshop use, home office, art studio etc. The building has contributory value with its large size but at what point does the value cap? See how depreciated cost approach figures as, find SFR with a large detached building and or guest house/ADU, find an area 4000 sf house perhaps as 4th comp etc. Some assignments are "ugly", (I've done my share)...but that's why the client needs you isn't it..

 

[AObrejan]

Oy veh caramba...what a nightmare , but if this is a good client they need you to finish it. To sum up, this is a SFR with a large detached 2 story biding consisting of a garage and living area on one level with a bath and a second level living area sf with a second bath. No kitchen or kitchens and from what you post county does not allow it. What distinguishes an ADU is it has a kitchen , particular an installed stove.

Can an owner buyer illegally use these spaces as rentals and put a fridge and hot plate in each level? Unless building inspector finds out, Yeah...but if that it is not the legal use (rental units with cooking facilities ) then we can't value it as such since HBU has to be legal use.

What is legal use of this building as is ? Guest or inlaw suites , bedrooms for teens/extended family, workshop use, home office, art studio etc. The building has contributory value with its large size but at what point does the value cap? See how depreciated cost approach figures as, find SFR with a large detached building and or guest house/ADU, find an area 4000 sf house perhaps as 4th comp etc. Some assignments are "ugly", (I've done my share)...but that's why the client needs you isn't it..

Per owner, it was built as inlaw suites.
The only house I could find with a guest house larger than 600 sf was about 5 miles away (approx. 1,000 sf GH)
The homes with a sf over 3,000 over a 2 mile radius are newer (year 2000 or newer). Typical sf in the immediate neighborhood is 2,000sf and built in late 70s. No 2 unit properties, 2 on one lot, inlaw suites, game rooms,etc….or older/large sfrs within reasonable distance. Looked 5 years back... and still looking

 

[J Grant]

You can only use what you have... a SFR with guest house under 500 sf and adjust for guest house size, use the one 5 miles away with 1000 GH....are there any SFR with a large detached garage or workshop ?

 

[Tim The Enchanter]

2 low quality AirBnB rooms?

 

[AObrejan]

You can only use what you have... a SFR with guest house under 500 sf and adjust for guest house size, use the one 5 miles away with 1000 GH....are there any SFR with a large detached garage or workshop ?

There is one house with a barn...no size given/listing agent cannot provide additional info.

 

[AObrejan]

2 low quality AirBnB rooms?

Yeah!...not exactly an area for ABBers

 

[J Grant]

There is one house with a barn...no size given/listing agent cannot provide additional info.

Sounds like the sale 5 miles away with 1000 sf detached building is best comp for that aspect at least...what was the selling price?

I did a similar though not as large a difference appraisal recently
On grid I wrote for subject "large gst hse" and then same for biggest guest house comp I could find ( tough it was still smaller thatn my subect) I wrote "large gst hse", and made no sf adjustment between them. For the smaller guest houses I wrote "sml gst house" and made an adjustment for size . No $ for $ sf adjustment made guest houses, just large as equivalent with no adjustment, and small got a big adjustment. .

.is there a 3000 sf house in subject area as another comp...a PITA assignment for sure

 

[Slappy]

When I have a mess like this I always find out what is legally permitted first. Is the guest house legal? What size is allowed? What is is the occupancy restriction if any? That will drive how you approach the problem. "Legally permissible" trumps everything else in your HBU analysis.

 

[gregb]

When I have a mess like this I always find out what is legally permitted first. Is the guest house legal? What size is allowed? What is is the occupancy restriction if any? That will drive how you approach the problem. "Legally permissible" trumps everything else in your HBU analysis.

Yeah, unless the existing improvements have been "grandfathered" due to changes in zoning then the issue is what, if anything, could be re-built if the existing improvements are either damaged or destroyed.