All Forum Posts by: Hillary Gries

A residential appraisal is completed for 1-4 unit properties (can include a rent schedule and operating income statement). 5+ units require a commercial appraisal.

How long ago was the original appraisal completed? The appraiser will need to pull current sales and data, as well as an exterior inspection. Are they actually doing an appraisal update (1004D) or a discounted new appraisal (1004/assuming this is a residential single family)? Recertifications aren't very common any more. Will they be taking into consideration any modifications to the property since the original report?

First you need to make sure zoning allows an ADU. Also check the requirements of the ADU. If your primary is 600 sqft, I am not certain an 864 sqft additional structure would qualify as an ADU. Typically an ADU is inferior in size to the main improvements. In order to determine value, you would need to find similar properties to use as comparables. Which Denver neighborhood are you referring to? By age and size, it sounds like something in DSW? If you need something on paper, an appraiser can complete a report 'subject to'. This would require copies of plans and specifications. Needless to say, my first phone call would be to Denver Zoning.

I second what @Aaron K. said. It doesn't hurt to provide your own research, but the appraiser will do their own due diligence. If I look at the first provided comp and realize it does not come close to meeting guidelines, I stop reading. Make sure the comps provided are legitimate and not just seeking a number.

I would check with your state regulatory board to find out local requirements. Generally, to obtain a license, you have to complete approximately 150 hours of education and align yourself with a mentor for 2000 hours +/- during the trainee phase (in no fewer than 12 months). You can then take a state exam to become licensed. You need additional schooling and hours to become certified. Currently they require a bachelors degree to become certified, however I believe they are making some modifications to this requirement. The toughest hurdle for appraisal entry right now is finding a mentor. Before you dive in, I would suggest reaching out to some experienced appraisers in your area, perhaps find a company that utilizes trainees. Research your local appraisal association and attend a meeting. Or even go the commercial route and start as an analyst. Keep in mind that most banks will only hire certified residential and certified general appraisers to complete appraisal work. Feel free to PM with any questions and best of luck.

While appraisers do need to include actives/pendings in their report, a sold comparable will carry primary weight.

It is my understanding that if the county has it registered as an SFR and ADU, and the property meets all the requirements set forth by the county to make it so, then it should be completed as such on the appraisal report. This would mean the appraisal would be completed on a single family 1004 with the ADU box checked (as opposed to a 1025 2-4 unit report).

Every county has different requirements as to what constitutes a 2 unit vs ADU property. I would suggest consulting with your county assessor direct. Typically an ADU is a subset of the main property, where as a duplex each unit is more or less equal. However, confirming with your assessor is the only way to determine what is legal and how it should be reported on the appraisal.

Happy to help out if you need any appraisal assistance. I'm just 3 blocks east in Whittier!

Congratulations! Can you take a look at competing properties with your desired value/rents and see what finishes they offer? Most importantly you do not want to over improve. Primary upgrades would be finish the basement (possibly add an egress window and additional bedroom), kitchens, baths, flooring, is there room to add a garage if one does not exist, A/C. I would make sure all essentials are in proper working order (roof, furnace, hot water heater, electrical) and then move on to the cosmetics.