Nathan Bernhardt of Bernhardt Appraisal has put some time and energy into discovering a great deal about Accessory Dwelling Appraisal and Accessory Dwelling Financing.
Contact Nathan to help you with anything related to ADU Appraisal or ADU Financing or any question you may have about Accessory Dwelling Units. 503-349-3765
Nathan has put together some of the most relevant articles and information here.
ADU (Accessory Dwelling Units) Survey Report Published
A survey of ADU owners in Portland, Eugene, and Ashland, Oregon is complete and now published. You can find it at Oregon DEQ’s website and AccessoryDwellings.org. This mail and web survey was administered by Portland State University’s Survey Research Lab and developed by the Oregon Department of Environmental Quality, Portland Metro’s regional government (Metro).
Appraisal Journal on ADUs: they could be worth more than you think
Today the Appraisal Journal publishes a research paper about residential properties with accessory dwelling units (ADUs). The paper describes an income-based method for appraising properties with ADUs, and concludes that using an income-based approach can give appraisers a valuable counterpoint to results from the frequently used, but often problematic, sales comparison approach. In the case of 14 Portland properties sold from 2006-2011, valuations by income were significantly higher, on average, than actual sales prices, by 7 or 10 percent, depending on the exact formula used. Here’s the press release, which includes (at least for now) a link to the full report. Also find more from this article, ‘Appraising properties with accessory dwelling units: a preview of new methods and findings‘.
Financing for constructing ADU’s has been rough going.
Here’s some reasons why it’s historically been so difficult to get a loan for constructing an ADU:
- National banks can’t determine the value of ADUs as a product, and they typically won’t lend against a product whose value they don’t understand.
- Banks can’t establish the value of a prospective ADU because it’s difficult to appraise the value of ADU’s.
- It’s difficult to appraise the value of ADUs in part because there are so few permitted ADUs in the market place; there are not many comparables for the appraiser to use to establish an opinion of market value for the ADU and the main house together.
- There’s so few ADUs in the market place because most cities/counties make it difficult or impossible to build them.
There is actually a good amount of information out there about ADU’s, Accessory Dwellings, though not all in one place. Nathan Bernhardt has become well versed and would like to help you with any questions you might have on this popular and fascinating subject.
Give Nathan a call, he would be more than happy to answer any question you may have.