Does anyone know how to value a home with a separate structure or cottage? Are both structures valued separately using separate comps, or as as one home? If the former, and the value pushes the home well above homes in the area, does that need to be taken into account? I would argue yes, since for the same price you could buy into a better area and an extra structure is not going to be essential for most buyers.
If the accessory dwelling is “legal” (has separate address, own mailbox and own utility meters), then it would enhance the value of the property, even if situated on the same lot as the main house. This “enhancement” to the appraisal would likely be based upon the amount of monthly rent it could fetch. If it’s just an unpermitted MIL unit which uses the same address and utilities from the main house, then the main house description would just include the BR’s/BA’s of the accessory unit in its own description and the accessory dwelling may or may not add value to the property, depending on the size of the lot and how it is used.
If the separate unit was not done with permits, the property may not qualify for a loan.
While logic or common sense tells you the property is worth more than other properties that do not have a separate unit, the reality is that it may have to be sold for less because it can only be sold to a cash buyer.
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