Appraisal square footage and ADU

[John Bernardo]

I've received an appraisal back of my property which does not account for livable square footage of my ADU.

The main building's square footage is ~1900 and the ADU is ~400 for a total of ~2300, but the appraiser is using pp/sf figures that only account for 1900 sf, so the pp/sf appears much higher than expected.

We have it listed and have been marketing it at ~2300 sf.

Is this normal?

[Dan H.]

Quote from @John Bernardo:

I've received an appraisal back of my property which does not account for livable square footage of my ADU.

The main building's square footage is ~1900 and the ADU is ~400 for a total of ~2300, but the appraiser is using pp/sf figures that only account for 1900 sf, so the pp/sf appears much higher than expected.

We have it listed and have been marketing it at ~2300 sf.

Is this normal?

In CA it is common that ADUs footage is treated different than the other unit’s footage.  The ADU is often treated like an accessory like pool, Solar, well, non-unit out buildings.  The value added by the ADU is often far below the cost of building the ADU. Not sure if same in chandler, AZ.

This appraisal issue has been discussed on many bigger pockets threads.  The initial negative position of the ADU addition is one of the plethora of reasons that adding an ADU is often one of the worse RE investments (contrary to what many ADU developers/providers state/imply). 

You can try to appeal the appraisal.  It could work if you can find sold comps that reflect the ADU value as significantly higher than your appraisal.  I suspect this will be difficult because in my market the properties with completed ADUs are not selling for a value that reflects the hands off cost of the ADU addition or that values the ADU like the primary structure. 

good luck