- Jul 12, 2016
- Professional Status
- Certified Residential Appraiser
I recently accepted an order for 1004 SFR purchase appraisal. The listing stated 2-story with finished basement. Upon inspection, it was determined that the basement was separately metered, there was no interior access between the basement and main floor, and there was a tenant renting the basement. You would've had to walk out the back basement door, up and around to front door to get to the main level. So I communicated this to the AMC to see if they wanted to change to multi-family form or cost-to-cure to convert back to interior access between the basement and main level. Their response was "The house was not purchased as a duplex. Please have the appraiser proceed with 1004 as SFR with mother-in-law suite". I have heard of accessory units but they weren't separately metered and they weren't below grade. And I've seen in-law suites but I thought that just meant a dedicated bathroom/kitchenette to a bedroom. How should I proceed if the lender insists on keeping it as-is value on a 1004 form and referring to the basement as in-law suite?