Help with an ADU question. Thank you in advance.

[Carol Gist]

Appraised a dayranch, whereas the basement is a legal ADU. There are two ways to access the ADU, via the main level or a door that access the ADU only from the outside. Usually the ADUs I deal with are detached. I have three comps and they ALL have same basement ADUs, so I put the subject's ADU info in the basement area portion and adjusted its sf, BR and bath counts for the comps and did the same for the comps. Lender is coming back and saying it has to be a separate line item at the bottom and can not be written in the basement area. That seems odd, its like I am saying there is no basement. If you agree, it should be a separate line item, then do I just leave the basement area blank? They said it is a "FNMA audit issue" OR did I do it right my way. Thank you

 

[Tim The Enchanter]

Sounds like you did it correctly to me. Not 100% sure about their argument, but I think they are wrong.
Otoh, maybe this is a change in the report that makes no real diff? Just a format change basically?
So, or, maybe it is not your hill to die on? Hmm........

 

[andrew81]

Appraised a dayranch, whereas the basement is a legal ADU. There are two ways to access the ADU, via the main level or a door that access the ADU only from the outside. Usually the ADUs I deal with are detached. I have three comps and they ALL have same basement ADUs, so I put the subject's ADU info in the basement area portion and adjusted its sf, BR and bath counts for the comps and did the same for the comps. Lender is coming back and saying it has to be a separate line item at the bottom and can not be written in the basement area. That seems odd, its like I am saying there is no basement. If you agree, it should be a separate line item, then do I just leave the basement area blank? They said it is a "FNMA audit issue" OR did I do it right my way. Thank you

You did it correctly.

FNMA doesn't address basement ADU's. The selling guide only says to not include main level ADU in GLA unless there is interior access and above grade.

 

[Tim The Enchanter]

there is interior access and above grade.

With exceptions. For me, they are in the hills and mountains.

Which is to say a basement by the usual definition is not always a basement in the eyes of the market.

 

[Elliott]

I put ADU's near the bottom of the grid. Unusual things go there too.

 

[andrew81]

With exceptions. For me, they are in the hills and mountains.

Which is to say a basement by the usual definition is not always a basement in the eyes of the market.

Which is also explained in the selling guide.

For consistency in the sales comparison analysis, the appraiser should compare above-grade areas to above-grade areas and below-grade areas to below-grade areas. The appraiser may need to deviate from this approach if the style of the subject property or any of the comparables does not lend itself to such comparisons. For example, a property built into the side of a hill where the lower level is significantly out of ground, the interior finish is equal throughout the house, and the flow and function of the layout is accepted by the local market, may require the gross living area to include both levels. However, in such instances, the appraiser must be consistent throughout the appraisal in his or her analysis and explain the reason for the deviation, clearly describing the comparisons that were made.