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Not an accessory unit?

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Fritz Smith

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South Carolina
My subject is a large (4500+ sq ft) SFR with an In-law/Guest Suite. The suite has about 600 sq ft of living area with a livingroom with a kitchenette (sink, small range and fridge), bedroom and bath. It is integral to the remainder of the dwelling, is accessed from the interior and opens to a screened porch on the rear. It shares electrical, plumbing and hvac with the rest of the house. The property is located in a subdivision where the typical GLA is 2200-2700 sq ft. There is no rental market for accessory units in this area and the design is not intended for that use. It was built for the borrowers father who lives there.

My report states the dwelling is super-adequate for the neighborhood and has external obsolesence due to the GLA. The lender wants me to check the one unit with accessoiry unit box and make an adjustment in the grid.

I don't think the In-law/Guest Suite meets the criteria for an accessory unit due to the way is is constructed. Also, taking the area for the suite from the GLA still leaves the subject almost 1,500 sq ft larger than anything else in the neighborhood.

Any thoughts?
 

Richard Carlsen

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State
Michigan
My report states the dwelling is super-adequate for the neighborhood and has external obsolescence due to the GLA.


I think you hit it on the head in superadequacy as the market does not appear to have any demand for such unit (no similar known housing around). I think you are in error however, in the external due to GLA. Size/floor plan would better be considered as functional since it is something within/about the subject that is effecting value rather than something outside of the subject that is effecting value.

Since the unit is accessed within the house and is not one of the "guest cabins" that we find in old converted garages up here, I would not classify it as a separate unit but part of the subject which, as you correctly noted, is superadequate for the market. I don't think I would allow myself to be cajoled into considering it as a separate accessory unit.
 

Fritz Smith

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The reason I called it external is the subject does not conform to the rest of the subdivision. There are other markets in my area where a dwelling this size would be accepted as typcial. In fact, I supported my depreciation with sales data from one of these other markets.
 

Restrain

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Certified General Appraiser
State
Florida
Is there a superadequacy? Possibly. Are there any competing neighborhoods with similarly oversized homes that can be used as a basis of comparison for your adjustment? Just suggesting that you go the extra mile (figuratively and literally) to support the adjustment.

However, subject does not have an auxiliary unit. This is defined as a separate, detached living area. A home with a secondary, integral, living area would be a "guest quarters", "mother-in-law suite", "second master suite", or other similar description. However it is described, it is not an auxiliary living unit.
 

Fritz Smith

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South Carolina
I did find a sale about 6 miles away where the GLA was about 500 sq ft larger than anything else. This difference is more plausible than my subject but it did help support my adjustments. Any way you turn it, this is not a pretty assignment.

BTW- This has caused me to wonder if there have ever been subdivision restrictions on maximum size?
 

Brad Ellis

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Feb 7, 2006
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California
Fritz,

First Richard is right- this is functional and not external obsolescence. External must be just that- external- meaning off the subject site.

Next, I saw nothing at all that indicates that this is not an accessory unit. I sure seems to be- interior access from the main part of the dwelling, etc.

I'd count it as an accessory unit for sure- unless I am missing something here.

Brad
 

CANative

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Jun 18, 2003
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Retired Appraiser
State
California
Brad... Sometimes it is a judgment call. Look at this diagram of a property I appraised a few weeks ago. Probably similar to the OP's property. Mother's land and the kids built a house on it including a self contained wing for mom to live in. Accessed through a hallway but exterior access also.

Is this a 4200 sf house or a 3600 sf with an ADU?

 

Fritz Smith

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South Carolina
OK, you guys are right about the obsolescence. I just had my thinking backwards for a minute.

However, I'm still not sure about the accessory unit. I have been trying to find a definition or definitive criteria. This will apparently be an on-going issue. I'm seeing a lot more homes built to accomodate an elderly family member. It would be nice to avoid all the headaches every time this comes up.
 

Fritz Smith

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South Carolina
Greg... Very similar to my subject. Was that a sale? Can use it for a comp?
 

CANative

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State
California
No. Not a sale. But if it ever sells I'll let you know so you can use it. You'll just have to explain the 3,000 miles somehow.
 
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