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Opinions For An Adu?

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Tom D said:
makes a great space for your older kids, or parents, although i have seen these mostly over the detached garage. if you cannot find similar, then just do as a finished rec area. like a detached sunroom, or finished enclosed patio. if you are nervous, then mention it, and give it no value because 'there is insufficient market data to determine what effect, if any, this situation has. Due to the lack of market evidence to support differences in exterior amenities (paired sales), no adjustment will be utilized for differences in amenities. However, the appraiser will consider the lack of the adjustment when reconciling an opinion of value.'

personally, i would love it as an office or work shop, or for my daughter, or for the wife's doll collection. can the owner rent it? i don't know the area rental rules, but it has more functional uses other than a rental space.
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Thanks, Tom...Your reconciling comment is rationale for not selecting the value estimate conservatively in the indicated range, if no adjustment made? Bob
 
robertwells said:
Hi Guys/Gals, You folks are always very helpful as a sounding board, and wanted to see if anyone was willing to provide their opinion here(?)...I am working on a refinance appraisal of a single family home that has a detached studio unit with kitchen and bath, that appears to have been an original garage at some point, however, only a garage is recognized in public records. This apparent conversion was done by a prior owner, but has been this way for at least about 19 years. I have no permit data for this feature and again, it is not recognized in public records (also, only one meter on property). My question goes to possible value attributed to this feature. I have only one sale with a detached unit (that is also not recognized in public records), and seems to indicate some value for its feature, but there are numerous other adjustments needed, so not a really solid indicator. I assume this was not a permitted conversion, and it is also noted it extends almost to the rear property line (a cursory review of zoning ordinance indicates accessory dwelling units allowed, but with a minimum lot size larger than the subject's parcel). The bath is funky with two steep steps to get up to the tub/shower from vanity/toilet, and the unit does not have a permanently installed heat source, however, apart from these factors, it has a nice finish. I reached out to get some input/guidance from lender/client, but all I was offered was, "If appraiser can address it as an accessory unit/storage as long as it only has 1 meter, then it should not be a problem".

Thoughts on valuation of this feature, that is likely not legal? Of course with the garage converted, it was not assigned value for having a garage, and comps with one car garages were adjusted downward...Thanks! Bob
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While I appreciate you reaching out to us for guidance, your first stop after the inspection should have been to the Building Inspector.

I see these all the time. I immediately go to the BI office and ask their opinion and look for permits. Once I have the ruling, I go to the client tell them my findings. That way, you are not asking the client what to do; and have them tell you false direction (number of meters does not determine legality). If it is illegal, then you are not doing an appraisal, with finding comps with an ADU, that in the end is still providing a false appraisal.

If it is legal, then you know that you are finding comps with ADUs AND checking to make sure those ADUs are legal. More work? Yup. But at least you are keeping you and your client out of trouble.
 
There is a difference between permitted (pulled permits) and permitted (allowed).
 
Joe Flacco said:
There is a difference between permitted (pulled permits) and permitted (allowed).
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Of course! That is why you have to talk to the BI to get a ruling.
 
robertwells said:
Hi Guys/Gals, You folks are always very helpful as a sounding board, and wanted to see if anyone was willing to provide their opinion here(?)...I am working on a refinance appraisal of a single family home that has a detached studio unit with kitchen and bath, that appears to have been an original garage at some point, however, only a garage is recognized in public records. This apparent conversion was done by a prior owner, but has been this way for at least about 19 years. I have no permit data for this feature and again, it is not recognized in public records (also, only one meter on property). My question goes to possible value attributed to this feature. I have only one sale with a detached unit (that is also not recognized in public records), and seems to indicate some value for its feature, but there are numerous other adjustments needed, so not a really solid indicator. I assume this was not a permitted conversion, and it is also noted it extends almost to the rear property line (a cursory review of zoning ordinance indicates accessory dwelling units allowed, but with a minimum lot size larger than the subject's parcel). The bath is funky with two steep steps to get up to the tub/shower from vanity/toilet, and the unit does not have a permanently installed heat source, however, apart from these factors, it has a nice finish. I reached out to get some input/guidance from lender/client, but all I was offered was, "If appraiser can address it as an accessory unit/storage as long as it only has 1 meter, then it should not be a problem".

Thoughts on valuation of this feature, that is likely not legal? Of course with the garage converted, it was not assigned value for having a garage, and comps with one car garages were adjusted downward...Thanks! Bob
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Property location / governing muni ?
 
In DC, permit is required when replacing siding, gutters, patios, floor coverings. If owner replaces these items without permit is the zoning compliance illegal?
 
gregb said:
Mike, every city and county in CA is required to enact an ADU ordinance, that cannot be more restrictive than the state guidelines. It is a can of worms unfolding on a regular basis.
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Which is why I asked the OP to post the subject's location and governing municipality. :)
 
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