How do Appraisers treat an In-Law suite

Question

Hi BP,

I'm trying to analyze a property that has detached 1/1 inlaw suite and I'm not sure how to comp it for ARV. There aren't really any other sales with one recently so I'm not sure what I should do. Should I comp the main house to similar floor plans, then add in the suite, or comp the whole property to other properties with the same bed/bath make a deduction for the separate floor plan?

Ryan Murdock · Answer

I have a 3/2 house with a 1/1 in-law suite above the garage. I had it appraised in 2014 and again in 2016. Different appraisers each time.

Both appraisers comped it as a 3/2 and then added value for an "Accessory Unit" (+$5000 in value in 2014 and +$9000 in value in 2016).

Hope this helps.

Nicholas Candaffio · Answer

Thanks @Ryan Murdock and @Kuba F. very helpful.

Kuba F. · Answer

@Nicholas Candaffio if you look at it using a buyer's eyes, then it would be much easier to sell as the main house + bonus rather than full property - floorplan. With the first you feel like you're getting something extra, something special, with the other you feel like there is a deficiency.

How do Appraisers treat an In-Law suite

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