Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago,

User Stats

4
Posts
1
Votes
Jaclyn Walker
  • Investor
  • Atlanta, GA
1
Votes |
4
Posts

ADU Valuations-Appraiser Insight Request

Jaclyn Walker
  • Investor
  • Atlanta, GA
Posted

Hey guys-I'm putting the finishing touches on an ADU project and I would love some insight into how the property will be valued now that the ADU is finished. Let me provide some details-

The property is in an A- neighborhood in Atlanta.

Main house is a 2/1 1100sq ft (appraised for 375k in 2017)

The ADU is a 2/2 730sq ft. It's detached from the house. I'll be renting it out to friends for $1600/month but market rent is closer to $1800-2000/month.

I would love an appraisers insight into how to value a property that will be difficult to comp. In my area, ADU's are typically used in properties with a very large main house, so there are very few (if any) properties in my hood that could be used as a comp.

Side note-I've refinanced several properties in the past and as a general rule, appraisals on refinances have come in about 12-15% below what I expected. I've heard other investors talking about this same issue, anyone have some thoughts on how to correct this(other than adjusting your ARV by 15%)? When the house across the street sold 30 days ago for 165k and you refi a fully updated comparable home, with added garage, and it appraised for 142k-I have a hard time understanding. Any thoughts would be appreciated!

-Jackie