Refi/HELOC - No Comps for ADU's

[Jin Tan]

Hi All,

I am wondering if there is anyone in the LA County area who have completed an ADU project and going thru (or have gone thru) a refi or HELOC process. We just built a 1200 detached ADU and are applying for a HELOC. The appraisal came back far lower than what we expected. The comps used are single family dwellings, and our ADU is being considered as a "guest house" and an amenity to the main dwelling. As such, the appraiser is giving it $60/SF. To me this makes no sense. Just the cost of construction is already $150+/SF.

Has anyone had this similar problem? And were you able to substantiate a higher valuation?