Multi family vs ADU

[App601]

We are not supposed to change a property type because calling it a different property type would get more value. Some people might call it fraud.

This line of thinking is...a BMW sells for more than a Buick, so I will call my Buick a BMW. But it is still a Buick.

The market is showing that properties with ADU s sell for less than properties with it
But if it is currently generating income why I can not say it is an Income producing property?

I am going to use 3 comps of properties with ADUs from competitive nearby developments believe it is the most credible

 

[J Grant]

The market is showing that properties with ADU s sell for less than properties with it
But if it is currently generating income why I can not say it is an Income producing property?

Of course you would dislcose the income it generates - even if it remains an ADU that is being appraised. We always disclose everything, and maybe the lender wants a rental survey added, which happens on investor-use SFR UAD appraisals.

Is it generating income from the SFR and the ADU, or only generating income from the ADU?

 

[App601]

From the ADU But I realize that i have to compare apples to apples and have decided to use all comparable sales from properties with ADUs from nearby Competituve developments

 

[J Grant]

From the ADU But I realize that i have to compare apples to apples and have decided to use all comparable sales from properties with ADUs from nearby Competituve developments

Sounds like that is following appraisal standards... good luck with it!
If it were my appraisal, I would also use comps of sales of similar SFR even if they did not have an ADU from the subject neighborhood. It is good practice to include sales from the same neighborhood or subdivision whenever possible.

 

[App601]

Sounds like that is following appraisal standards... good luck with it!
If it were my appraisal, I would also use comps of sales of similar SFR even if they did not have an ADU from the subject neighborhood. It is good practice to include sales from the same neighborhood or subdivision whenever possible.

Good odea but i would have to do a negative adjustment for the ADU ( ugly)or a functional or external obsolesense as the market indicated that ADU s are worth less
Maybe as a 4 th comparable to explain that properties w/o are worth more but leave the ADU s w/o adjustement.

 

[J Grant]

So

Good odea but i would have to do a negative adjustment for the ADU ( ugly)or a functional or external obsolesense as the market indicated that ADU s are worth less
Maybe as a 4 th comparable to explain that properties w/o are worth more but leave the ADU s w/o adjustement.

Lol - you got stuck with a problem child assignment !

State that the market is not indicating a positive adjustment for an ADU, and the comps show it.

 

[Dublin ohio]

So how do non adu single family homes compare in price between the two developments

 

[Surf Cat]

At first I was going with SFR with Adu. Then, the op gave us the zoning, which allows 1-4 plus, the back unit is separately metered. Not only that, he described the neighborhood as being improved with 2 to 4 unit properties. So, I changed my opinion that it should be done on a 1025 like the op originally was going to ( after informing client).

The op still hasn't provided what the legal description of the subject property is. So, there's still a piece of the puzzle missing after ovrr 30 posts. And now....he's going SFR w/Adu....

 

[J Grant]

Toss a coin .

 

[Dublin ohio]

At first I was going with SFR with Adu. Then, the op gave us the zoning, which allows 1-4 plus, the back unit is separately metered. Not only that, he described the neighborhood as being improved with 2 to 4 unit properties. So, I changed my opinion that it should be done on a 1025 like the op originally was going to ( after informing client).

The op still hasn't provided what the legal description of the subject property is. So, there's still a piece of the puzzle missing after ovrr 30 posts. And now....he's going SFR w/Adu....

Although zoning is 1-4 family. Sometimes you have to examine the zoning regs more closely. A sf could have a min lot size requirement of 5000 sf, but a 2 family could have a larger lot size minimum as well as other requirements. Also, what does zoning say about an adu