Non-permitted 2nd unit?

[Surf Cat]

I don't have similar comps with non-permitted guest houses

How about non-premitted additions...that'd work too.

Expand the parameters of time and distance in your search.

 

[Johnny Knucks]

How about non-premitted additions...that'd work too.

Expand the parameters of time and distance in your search.

That's kind of what it is, except that this is a detached garage. Again, I'm not sure how they did the septic/sewer, which is my biggest concern. This structure is about 50 ft from the main house. They just completed the conversion and now they are selling. I can see myself holding the bag real easy on this one. I want to complete the assignment, but I don't think I can just pretend like the ADU isn't there.

 

[Surf Cat]

Agree with your post, just one point - as far as I know, we can not just create a HC on a URAR lending appraisal where a major property characteristic does not exist/never happened.

He can if he uses the GP form..... he definitely needs to contact the client to clarify. Easiest way to go about this is including a couple sales with some sort of non permitted additions to show Market acceptance.

 

[J Grant]

He can if he uses the GP form..... he definitely needs to contact the client to clarify. Easiest way to go about this is including a couple sales with some sort of non permitted additions to show Market acceptance.

But lender clients for a fannie or freddie loan will not accept the GP form. He can ask, but 99.99 percent of assignments that ask for a URAR form will not allow a GP form to be used.

 

[Surf Cat]

That's kind of what it is, except that this is a detached garage.

But it's not.

You need a sale with a non-permitted addition of some sort. Search harder....18, 36 months back...25 to 30% difference in GLA....2 to 5+ miles in distance. I can't believe the subject is the anomaly of the entire market area and there's no non-permitted additions anywhere in the last 3 years....if that's the case then withdraw yourself from the assignment.

Doing a hypothetical is going to be a slippery slope if the loan is conventional. It can't be done on a 1004 uad....

 

[Dublin ohio]

An "unpermitted" conversion like this is somewhat fascinating. Unless the owner did it all by themselves (highly doubtful). Is there a propensity of qualified contractors that do work without pulling permits. The water line itself would have to be buried below the frost line. Which in areas that have cold winters is at least 36". Tapping into a sewer line is not a "do it yourself" project. Even if they tapped into the existing house line, depending on the distance it would be difficult at the least to get the proper drop. Does it have a lift pump? Is the electric underground or overhead and does it have its own breaker box. Something doesn't pass the "smell" test

 

[Dublin ohio]

It doesn't have any permits, so technically it's illegal, and I'm thinking of doing that. It's either that or legal/nonconforming

I guess I should have clarified, I believe the structure is legal,

So which is it. Don't conflate zoning requirements with building code requirements. Zoning typically just tells you what can be built, not how to build it

 

[Fernando]

I thought this was Fernando's thread. No long ago, he indicated his subject had a converted garage into ADU (an inferior quality 2nd unit) done without permits.
Maybe Fannie has different views on illegal ADUs in CA and your state.
In CA, permitted or unpermitted, appraiser Nando calls it an ADU.

 

[sputnam]

To appraise as if the unit does not exist would require a hypothetical condition. And is the loan a conforming secondary market loan or a non-conforming loan (bank held in house) Are you operating under FNMA or FHA rules or under IAG (interagency guidelines) As JG noted there is a lot to unfold here to be much help.

Doesn't matter... to the appraiser. The responsibility for requesting the correct appraisal service is the Client's. If they incorrectly tell you to appraise it as if the dwelling unit isn't there, then you can do that... for a fee. Of course, if you like the Client, you should spend some time chatting... educating them... that maybe what they are asking for isn't the best approach. Ultimately, it's their decision. Your decision is.... accept, decline, or withdraw.

USPAP is silent about forms. There is no prohibition against using the 1004 form for something like this... however, it's not a good idea. The built in statements and certifications on the 1004 would not really fit. In order to keep it correct, using the 1004 from would require a lot of extra commentary and it's highly likely that you'd miss something. Better off just using the GP form instead.

BTW, a fractional appraisal... that is an appraisal of a portion of a property... does not require the use of a hypothetical condition. It requires that the portions of the property being appraised be clearly identified and described. Sometimes though, it's simpler to just use an HC. If you are using an HC (or an EA) be sure to glance at SR 2-2(a)(xiii).

 

[Tom D]

Just to threating in too many ways, and how much is you being paid. You understand what the issues could be, since permits were not gotten. The happy buyer now will be the unhappy homeowner when there is a problem after they move in. Questions about up to code, insurance co will use that to get out of certain problems.

Around here it's called a completion certificate that the city gives after their final inspection. You can still b sued if you give it no value. You should have told the lender/buyers your significant and obvious concerns in the report.

Dear Lender, my computer ate the appraisal. Can you get someone else to do it. Say no to their request, you will not charge them for what you have done so far done. Let Mikey have this hanging over his head.