How to Identify a Single-Family with ADU vs. Two-Family Property
The presence of an additional living unit can complicate the appraisal process. It may make it difficult for you, the appraiser, to know how to classify the subject property. How do you know whether you’re dealing with an accessory dwelling unit (ADU) or a second unit?
- ADU meaning and types
- What is a two-family property?
- How to tell if it’s a single-family with ADU vs. two-family property
- It’s more likely to be a two-family property vs. single-family with ADU if:
- It’s more likely to be a single-family with ADU vs. two-family property if:
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My comments: ADUs have been a controversial topic for a long time in California as state and local governments kept changing their ADU requirements. Finally, what they are and where they can be built became standardized. Today, they are becoming popular to get extra rentals in markets low on housing. Most recently, there is a possible regulation to sell them separately from the main house. Another tricky HBU issue in California!
Check the regulations in your state, county, or city.
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NOTE: Please scroll down to read the other topics in this long blog post on non-lender appraisals, VA, flood and fires no insurance, retirement, few lender appraisals, unusual homes, mortgage origination