Shed-House "Shouse" design properties and secondary market

[rolco]

Lately I have had several request to appraise "shouse" (shed/house) design single family residences on larger non-urban lots in a rural/suburban areas of Missouri. For those not familiar with these, they are locally referred to as a structure that from the outside resembles a shed but is used as a residential dwelling. They typically have metal clad exteriors and roof, slab foundations, and large attached garages with overhead doors. They can either be pole frame or stick built. I will attach a couple of examples below. Some of them are pretty extravagant and include high-end interior finish, covered porches, fake dormers, etc. . There is a market for them, however, they are a relatively new concept so their isn't a lot of resales at this point in time. In my opinion, they are no different than a earth contact or modular design home in terms of marketability.

I'm told by one of my lender clients that fannie mea will not insure a property defined as a "shouse". I know that this same lender has financed several of these through the secondary market. So, other appraisers in the area are apparently calling them something different in order to pass through FM underwriting.

I just received another refi order today for a "shouse" property from this same lender. To clarify the subject of the assignment and scope of work, I drafted an engagement letter that plainly stated this appraisal was of a shouse design single family residence for secondary market mortgage lending purposes. The lender replied and said this is not a shouse, but a cape COD style home and that it has already been financed on the secondary market. They asked that I not identify it as a shouse within the report.

Just curious how other appraisers are handling these assignments, how they define the property, and if they are aware of any specific fannie mae guidance pertaining to a "shouse" or similar design home.

Thanks

 

[Mr Rex]

First one looks like a barn, workshop, or rural commercial use. Second one is just a SFR with metal siding IMHO. They haven't taken off here yet, but I'm sure they are some around.

 

[KHS445]

Pole construction with above average finished living area. More money spent on interior finish than framing and exterior finish. a few like this in my area but no resales.

 

[David S. Roberson]

"Just curious how other appraisers are handling these assignments, how they define the property, and if they are aware of any specific fannie mae guidance pertaining to a "shouse" or similar design home. "

I say "No thank you."

 

[J Grant]

what is the problem? a design style like any other , maybe a fad who cares, if the construction quality and function/kitchen baths etc are comparable to other houses. They look better quality than some at least in the photos
what idiot decided to call them a "shouse"? They are a house with ext styling like a barn

 

[Tim Hicks (Texas)]

They are called barndominiums here.

 

[rolco]

They are called barndominiums here.

How would/do you identify one in your appraisal report under design?

 

[Denita Neuenhaus]

The red one in your post isn't a "shouse" at all. As pointed out a few posts above it's a regular SFR with metal siding.
What are you using to determine the shouse label? The siding material? Size and number of garage doors? I think you should re-evaluate your shouse criteria.
The first one you posted looks like a shouse to me.

 

[Proactive]

Around here, those are a piece of cake. But that's coming from a guy who appraised a house designed like a teepee. Twice.

 

[Terrel L. Shields]

They can either be pole frame or stick built.

I see some with light metal frame (black iron) ...

In my opinion, they are no different than a earth contact or modular design home in terms of marketability.

I would say they market substantially better than either although perhaps less so that a conventional house. Much depends upon the land that it sits on in a rural property...but they are lower cost (why they get built) therefore, they compare poorly with a more conventional house. BUT I also see very typical houses now going to all metal exteriors and they cost every bit as much as painted or bricked home. My nephew just built one here on the rancho deluxe and chose metal siding. Pix while still under construction.