Katrina cottage / Tiny house appraisal

[Kelvin J.]

Hi. 

I was wondering if anyone knew if the small 400 sq ft Katrina cottages would appraise in the same way a regular single family home might in terms of resale? Bearing in mind they are solidly built to code and  could be set on pilings on a lot, not on a trailer.

Also would they appreciate in value in the same way a regular SFH might?

(This is assuming I found a subdivision that allowed below 1000 sq foot structures...)

I imagine a tiny house, being on a trailer, and so unconventional would not appraise or appreciate like a SFH.

Any appraisers out there with thoughts?

[Max Householder]

I'm not an appraiser, but I am a big fan of the tiny house movement. From what I understand, since they are on a trailer, they are generally regarded as personal property like a boat, RV, passenger vehicle, or even mobile homes depending on your state. Considering all of those things tend to depreciate in value, I would imagine that the same holds true for tiny houses no matter how well-built they are. On the flip side, I have read that being on a trailer and having "mobile home" status gives some advantages to tiny homes in regards to some building codes, local ordinances, zoning, etc. since it is not physically tied to the property. 

Again, this is a hearsay version of snippets I've read/heard on some blogs, forums, podcasts, etc. but maybe it will give you some more ideas of what to research.