How do we classify our detached in-law suite?

[suzannnicole]

How do we classify our in-law suite? We are zoned single family property. The in-law cottage is a 550 sq ft detached structure about 20' away from the main house. It shares an electric meter. Its 12 x 12 "kitchen" has no range so therefore isn't officially considered a 2nd kitchen on the property. It has 1 bedroom, 1 bath, living/dining, and unofficial kitchen (no range). When we bought it, it was not livable, and was listed as a "detached garage." With proper permitting, we converted it into insulated "heated living space" and had the structure rezoned accordingly. Do we add the sq ft to the "heated living space" of our main house? Do we add the bed and bath to our count (was a 3/1, now a 4/2)?

And a 2nd but related question, how do we figure out market value if there are no comparable properties? Double lot, same sq ft, same detached apt, etc.

 

[panappr]

How do we classify our in-law suite? We are zoned single family property. The in-law cottage is a 550 sq ft detached structure about 20' away from the main house. It shares an electric meter. Its 12 x 12 "kitchen" has no range so therefore isn't officially considered a 2nd kitchen on the property. It has 1 bedroom, 1 bath, living/dining, and unofficial kitchen (no range). When we bought it, it was not livable, and was listed as a "detached garage." With proper permitting, we converted it into insulated "heated living space" and had the structure rezoned accordingly. Do we add the sq ft to the "heated living space" of our main house? Do we add the bed and bath to our count (was a 3/1, now a 4/2)?

And a 2nd but related question, how do we figure out market value if there are no comparable properties? Double lot, same sq ft, same detached apt, etc.

The 2nd structure would be a separate variable in the market analysis... As for finding a similar comparable, if none available one could rely on the cost approach or compensate it with a similar amenity and treat it like a non-tangible.

 

[Terrel L. Shields]

With proper permitting, we converted it into insulated "heated living space" and had the structure rezoned accordingly. Do we add the sq ft to the "heated living space" of our main house? Do we add the bed and bath to our count (was a 3/1, now a 4/2)?

Gross Living area as defined by Fannie mae would not allow the square footage to be lumped in with the rest of the house either SF or room count in an appraisal. It is a studio. It has a value. The lack of comps does not make it invisible. Unfortunately for the profession there are a number of practioneers (i hesitate to call them "appraisers") who would aver that it is invisible and won't count it. Others would argue zoning etc etc...and a few might correctly assess it at something approaching its contributory value. It's pretty much a crap shoot that is dependent upon who rolls up snake eyes and has to appraise a house that don't fit the "fannie mae" box.

 

[Tim The Enchanter]

It's not considered living area of the house if it's detached.

 

[Smokey Bear]

Stoves are personal property, as are refrigerators, unless they're build it. So, if the room would be a kitchen if you put in a stove, it's still a kitchen.

 

[Mike Kennedy]

The Market (buyers of local similar, and directly competitive closed sales, contracted sales, actively listed properties) will demonstrate demand, and highest best use for the additional site improvement as:
1. detached guest cottage (current use, finished SF is NOT added to Home's GLA)
2. detached garage

The market will also demonstrate whether converting the garage currently represents an Over-improvement with little or no additional Contributory Value and lack of a garage as an Under-improvement.

As with all characteristics of a property, absent a current market data search the answer has to be "it depends" on when, where, what, and how much.

 

[Mountain Man]

Yours is a single family house with an accessory unit. Not uncommon in my area, many elder parents are living with sons/daughters or they are used as an office. Added value would be compared to other similar sales with an equally attractive feature. To say there are NO sales indicates you may be over built. However, when most agents complain about not being able to find comparable sales, it usually means they didn't look hard enough or didn't know how to find market data. Sometimes it's not as easy as hitting the CMA button in MLS.

 

[Mike Garrett RAA]

Accessory unit, not part of the gross living area (GLA) per Fannie Mae guidelines. It obviously has value but how much? The reason you hire an appraiser! There must be other properties with this feature, albeit, further away, older (dated) sales, or of lesser or greater size and function.

Good luck and best wishes.

 

[Terrel L. Shields]

So, if the room would be a bedroom upstairs. No plumbing. if you put in a stove, it's still a kitchen.

I've seen a cook stove in a kitchen. I've seen modern homes built for old timers who had a kitchen and also had a wood cook stove on a screened in porch. And they are not kitchens. And the rage now is the "outdoor" fireplace.... the antique ones have metal hooks to hang a dutch oven in them. Grilled a lot of steaks in my own fireplace.

 

[Joyce Potts]

You withdraw the invitation and make it inaccessible. It worked for me.