Is It an ADU or a Multifamily Property? How Appraisers Make the Call

At Maverick Appraisals, we often get questions about how to evaluate and categorize properties with more than one living unit. In this video, Andrew from our team walks through a real-life property example to help explain the process we follow to determine whether a home should be considered a single-family residence with an ADU (Accessory Dwelling Unit) or a multifamily property like a duplex or triplex.

▶️ Watch the video below to see the on-site breakdown.We’ll also highlight the key points from the video in the post below.

🔍 What’s the Difference Between a Duplex and an ADU?

Many homeowners are surprised to learn that duplex units don’t have to be attached. If a property has two livable units—like a main home and a separate structure in the back—it may qualify as a duplex or a single-family home with an ADU, depending on how it's configured and zoned.

So how do we, as appraisers, decide?

🛠️ Key Factors We Evaluate:

1. Is the Second Unit Livable?We look for things like:

   • A functional kitchen (not necessarily with a dishwasher or 220V power, but a stove hookup and fridge access are important)

   • A bathroom with a sink, toilet, and shower (often called a "three-quarter bath")

   • Separate entrance and living space

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2. Zoning RegulationsZoning is critical. Even if the second unit meets all physical criteria, it must comply with local zoning laws to be officially recognized as an ADU or duplex.

   
   

3. Highest and Best Use AnalysisIf zoning allows for both uses, we perform a highest and best use analysis. In the example property from the video, the surrounding neighborhood consists mostly of single-family homes, so the most likely appraisal categorization is single-family with an ADU.

   
   
   
   

🚫 What Happens If There Are Three Units?

The moment a property has three separate living units, it no longer qualifies for ADU classification. It must be appraised as a multifamily property. This is important if you’re thinking of converting or adding more living spaces.

🏘️ Why This Matters for Homeowners & Investors

Whether you're flipping a property, planning a renovation, or just want to know the real value of your home, understanding how additional units are appraised can affect:

• Market value

• Financing options

• Insurance

• Permits and compliance

📞 Need Help with Your Appraisal?

At Maverick Appraisals, we specialize in residential property evaluations across Texas. If you're unsure how your property should be classified or need a certified appraisal for your renovation, refinance, or sale, we’re here to help.

👉 Contact us today at www.maverickappraisals-san-antonio.com or give us a call. We’d love to walk you through your options.

💡 Stay Informed

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