One big house, ADU or Duplex?

[OSU Beavers]

I think that I have found my answer in the HUD Handbook 4000.1 which states that the appraiser must not include the living area of the accessory unit in the calculation of gross living area (GLA) of the primary dwelling.

To answer the above questions, it was built like this two years ago without any interior doors between the two living areas. I have had a property before in a multi-family zone where the owner sealed off a rear addition on smaller side only with drywall, but kept a one-hour fire door on the large house side so it could be converted back if a future owner wanted to. In that case I counted the entire sqft, but knocked a small cost to cure off the value.

For this home the borrower stated "The last appraiser just called it one 27xx square foot house and the bank did not have a problem with it" It was the same bank as now.

Looks like I have to throw out my 27xx sqft comps and find some 20xx sqft homes with an ADU. Good luck.

 

[bnmappraisal]

Looks like I have to throw out my 27xx sqft comps and find some 20xx sqft homes with an ADU. Good luck.

Yyyyyyyyuuuuuuuup!

I run into ADU's (In Law Qtrs) often in my market(s). Agents, even the County Property Appraiser, often combine the whole "27XX" (to use your example) in their figures instead of "20xx plus ADU"

These often take a lot longer to verify the GLA's and ADU living area due to these factors - MANY phone calls to agents later ... as well as reading through MLS comments and searching different "realtor comments" variations of what's an ADU or just "could be" an ADU. (Edit to add: marketed in MLS at 2,750 sf .... is that 2,750 PLUS the ADU or ???? )

As others stated, HBU (specifically zoning) is a big part of the equation in these assignments.

And to quote yourself again OSU ....

Good luck

 

[Tim The Enchanter]

Good luck with that royal pita.

Researched one today, legal duplex both units the same. Panorama City and very few 2 or 3 units around there.
My first search I drew a box on the map to not go too far from my hood and pulled in 6 sales.
Every single one was a SFR with ADU but the agent put it in the Res Income section of MLS and called it duplex.

 

[Mike Kennedy]

Oregon has made ADUs universally legal across all residential zones last year including Single Family.

JUL 3, 2019

https://psmag.com/economics/single-family-housing-is-ore-gone

A New Oregon Law Would Make It the First State to Ban ...
https://psmag.com/economics/single-family-housing-is-ore-gone
On Sunday, Oregon lawmakers gave their final approval to House Bill 2001, which would eliminate single-family zoning around the state. In cities with more than 25,000 residents, duplexes, triplexes, fourplexes, and "cottage clusters" would be allowed on parcels that are currently reserved for single-family houses; in cities of least 10,000, duplexes would be allowed in single-family zones.

 

[Rlong]

How would it been seen by buyers and sellers ?
The buyers and sellers in the market would probably see it as a great place for granny.
Bottom line, find similar sales and compare apples to apples.

Yea research MLS for "illegal apartment" LOL

 

[Terrel L. Shields]

It is a house with an ADU. It is not a duplex, I don't care what the zoning is...

 

[sputnam]

Terrel is correct. Zoning doesn't define what a dwelling is. Zoning defines what is legal on the site.