Small Spaces, Big Impact-Appraising ADUs

This course explores accessory dwelling units (ADUs) with a focus on their practical implications for real estate appraisers. The secondary mortgage lending requirements for ADUs are covered, highlighting the distinctions between Fannie Mae and Freddie Mac guidelines, and how these guidelines affect appraisals and eligibility for financing. 
The course includes a case study that illustrates the valuation of an ADU, demonstrating how to apply various appraisal methods to determine the contributory value of an ADU, even when faced with limited or imperfect data. You will also learn about different types of ADUs, from detached units to converted garages, and understand their advantages, such as increased rental income potential and enhanced property utility.
Zoning considerations and the highest and best use test criteria will be covered, providing you with the tools to evaluate the legal and practical viability of ADUs. The course examines how flexible zoning regulations in cities like Los Angeles, Seattle, and Portland can influence ADU development and valuation. By understanding these dynamics, you will be equipped to navigate regulatory changes, advise clients effectively, and make informed decisions when valuing single-family homes with an ADU.