source:
  type: guide
  id: va-m26-7-ch11-t05
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 5 — Room Additions
    and Car Storage Conversions
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 5 — Room
    Additions and Car Storage Conversions.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch11-t05-full
  canonical_id: va-m26-7-ch11-t05-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 5 — Room Additions
    and Car Storage Conversions
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 5 — Room
      Additions and Car Storage Conversions
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: faa7d8c84a0580f3
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:960cb068c0b142cd1bb4a0e38f29c6c5b725d24095781b92c663a83e9fd36263
    paragraph_quote: '5. Room Additions and Car Storage Conversions Change Date February
      22, 2019 • This Chapter has been revised in its entirety. a. GLA Considerations
      Room additions and enclosures of garages and carports into the living area should
      be included in the GLA if the added space is: • accessible from the interior
      of the main dwelling in a functional manner, • has a permanent and sufficient
      heat source, and • is similar in design, quality of construction and appeal
      to the main dwelling. b. Non-GLA Areas Valued Separately Added space that does
      not meet the criteria listed above must be valued separately from the GLA on
      the market data grid. The appraiser must consider the effect on marketability
      of an inferior addition or conversion when arriving at the line item adjustment
      for the added space. When selecting and analyzing comparable sales, the appraiser
      should consider the differences in quality and utility of room additions and
      converted spaces when compared with originally constructed space. VA Pamphlet
      26-7, Revised Chapter 11: Appraisal Report 11-10 6. Accessory Dwelling Unit
      Change Date February 22, 2019 • This Chapter has been revised in its entirety.
      a. Single Real Estate Entity An Accessory Dwelling Unit (ADU) is a living unit
      including kitchen, sleeping, and bathroom facilities added to or created within
      a single-family dwelling, or detached on the same site. A manufactured home
      on the site could be an ADU. The dwelling and the ADU together constitute a
      single real estate entity. b. Highest and Best Use As part of the highest and
      best use analysis, the appraiser must determine if the property is a single-family
      dwelling with an ADU, or a two-family dwelling. The highest and best use must
      be a legal use (see Topic 10). A two-family dwelling must be appraised on the
      Fannie Mae Form 1025, Small Residential Income Property Appraisal Report. c.
      ADU Valued Separately An ADU is usually subordinate in size, location, and appearance
      to the primary dwelling unit and may or may not have separately metered utilities
      and separate means of ingress and egress. The appraiser must not include the
      living area of the ADU in the calculation of the GLA of the primary dwelling.
      The ADU must be valued separately as a line item on the market data grid. d.
      Notify the Lender if More than One Unit The appraiser must notify the lender
      if a property has more than one ADU. e. Detached Buildings A manufactured home,
      shed, or other detached building on the property which does not have kitchen,
      sleeping, and bathroom facilities or cannot be legally used as a dwelling, may
      be valued as storage space if it does not present any health or safety issues.
      VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11-11 7. Nuisances Change
      Date February 22, 2019 • This Chapter has been revised in its entirety. a. Effect
      on Value While nuisances do not make a property ineligible or require repair,
      the appraiser must describe any nuisances and consider any effect on value.
      b. Sales with Same Influence If available, comparable sales influenced by the
      same nuisance, should be used by the appraiser. c. Examples Examples of nuisances
      include heavy traffic, noise from a nearby highway, or odors from a factory
      in the vicinity. VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11-12'
  judgment: false
