When conducting a sales comparison analysis in California, an appraiser discovers that the subject property has an Accessory Dwelling Unit (ADU) that was built under California's recent ADU legislation. How should the appraiser handle this feature?
Correct Answer
A) Search for comparable sales of properties with similar ADUs in the California market and make adjustments based on market-derived contributions
Under California's ADU legislation (Government Code §65852.2), ADUs have become increasingly common. The appraiser should seek comparable sales of properties with ADUs to determine the market-derived contribution of the ADU. This follows standard sales comparison methodology — using paired sales or other extraction techniques to isolate the ADU's market value contribution in the California market.
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Previous Question
A California buyer's agent is reviewing comparable sales data and notices that the county recorder's office lists different documentary transfer tax amounts for similar properties in the same city. Some properties show both a county and city transfer tax, while others show only the county tax. What does this difference indicate about the sale verification process?
Next Question
A California appraiser is valuing a waterfront property in Malibu and cannot find any recent waterfront sales in the immediate area. Three inland comparable sales are available. Under California appraisal practice and USPAP, what is the BEST approach?