Owned solar panels for ADU but not for the improvement. Is an adjustment warranted?

[CaliforniaSD]

I am appraising a house with two ADUs. The subject house and the attached ADU do not have solar panels. The subject has a detached ADU with owned solar. I was unable to identify any comps with a detached ADU with solar. Does this warrant an adjustment? Any advice is greatly appreciated. Thanks!

 

[glenn walker]

Yes they have value But I didn't know 2 ADUs ? Normally 1 ADU and when two your then a home and two units? I know Fannie and the other agencys only allow 1 ADU per single family home.

 

[Dublin ohio]

I am appraising a house with two ADUs. The subject house and the attached ADU do not have solar panels. The subject has a detached ADU with owned solar. I was unable to identify any comps with a detached ADU with solar. Does this warrant an adjustment? Any advice is greatly appreciated. Thanks!

Does the the ADU have it's own electric meter, who gets the benefit from the solar panels, is the main unit owner occupied, how big is the solar array, no sales with ADU that have solar on primary unit?

 

[Terrel L. Shields]

So, if FNMA or FHA, do the underwriters think they can fund a house with 2 ADUs?

 

[Tom D]

It's simple. Did you get the cost of the installation minus the savings to even see if there was a cost savings. Did you do a solar value approach. Maybe there aren't any comps because it's a fraud environmental business model.

 

[ZZGAMAZZ]

Yes they have value But I didn't know 2 ADUs ? Normally 1 ADU and when two your then a home and two units? I know Fannie and the other agencys only allow 1 ADU per single family home.

CA has specific standards that [based upon developmental standards as well as occupancy requirements] allow an ADU and also a "Jr. ADU."

 

[Elliott]

From a valuation standpoint, I'd think the 'solar savings' would be reflected in the rent and its correlation with value. So don't see where a line item adjustment would be necessary. It would be double accounting for a feature.

Does the lender know it has two ADUs?

 

[J Grant]

I would disclose the second ADU solar and include it with the overall upgrades. It is too fine a hair to split to try to extract an adjustment for it. If the property overall merits it, the solar can support appraising at the higher end of the adjusted value range.

 

[Tom D]

The appraisal institute has a new course on that.

 

[Surf Cat]

A single SFR comp with a Jr. ADU plus an ADU would be a major win imho.... I'd be surprised if you had one....