How do I estimate the value of a second structure on my property?

Question

zillow.com and other web sites will give you the estimate of your property value. However, if you have built a secondary structure on you property, how do you account for this value. Do you simply add the square footage of the structure to the main house and calculate the new value based on the average $/square ft? I think it should be more since it is a separate structure. My structure, for instance has electricity, plumbing, a bathroom, heat, air conditioning etc... and is 14' X 34' with french doors two windows, and a fireplace.

Answer 1

the best way is to open the yellow pages to the appraiser section.

no two buildings are ever alike, never, not even exact same tract houses on one block all built on slabs, all with equal numbers of bedrooms, baths, etc.--some have been better maintained than others and therefore have a higher value.

so, the best way to determine this value is to pay an appraiser for an appraisal.

if the extra structure sits on a separate lot that has the correct dimensions per your municipality to have a separate tax bill, then the additional building will be worth more. land is never depreciated. will rogers said: "buy land, they don't make too much of that anymore."

Answer 2

For the most part, out buildings carry little or no value. Although a shed, workshop, or other building may be of value to you, most potential purchasers will not want the out building.

If there are two identical homes, one with an out building and one without, many borrowers would rather have the home without the out building. It doesn't bring as much to the table as people think. When I review appraisals, if an outbuilding is given more than $10k in value, I get nervous.

The underwriting rule is that it cannot bring more than 10% of the value to the home without having a minimum of three similar properties in the area having sold in the previous year with the same outbuilding and an increase in the value of the three properties easily demonstrated against sales of similar homes without the out buildings. In other word, about never.