MAY 30, 2025
Issue 2
Marketing a Property with an ADU? Keep appraisals in mind!
If you are going to be listing a property with an ADU, you might be thinking about including information on the income potential, spinning the benefits of multi-generational living, planning on professional photography and drone video to showcase the two separate living spaces (even showing how someone living in the ADU would have their own private entrance), a 3D tour, and all the cool tools you have to market properties.
Those things are excellent ways to allow a potential buyer to imagine the possibilities. But have you thought ahead to what is needed for the appraisal? The appraisal could absolutely make or break the sale for you and your sellers. If a loan is required, planning ahead for the appraisal is what you should be doing before you even put the listing on the MLS.
The markets in areas that ADUs are allowed are hitting a critical point - there are more of them coming on the market, yet comps are still scarce, making valuing them as a real estate professional difficult, but as an appraiser, this can become even a very challenging exercise.
I recently sat down with Kathy Walsh, president of the Appraisers' Coalition of Washington to talk about the difficulties her industry is facing with appraising middle housing properties and those with ADUs. It was a fascinating conversation. She emphasized the need for real estate agents to work together with appraisers as both sides try to navigate these new uncharted waters and that one of the best ways real estate agents can be supporting appraisers is by providing thorough and accurate information regarding the ADU's development in the listing itself via supplements.
In fact, she shared the biggest issue that appraisers are facing when it comes to appraising listings with ADUs, an issue that real estate agents can avoid altogether by including this one supplement...
