Could This Simple Home Renovation Boost Your Property Value by 20%?

Could This Simple Home Renovation Boost Your Property Value by 20%? - 1

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If you want to boost your property value by a significant amount, consider building an ADU (accessory dwelling unit). “We find that the typical ADU adds 24% (about $250,000) to the sale price of a single-family home in L.A. County,” Anthony Dedousis of Revival Homes tells the Los Angeles Times . Here are some other benefits of adding an ADU to your property, and what you should know before you get started on developing one.

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Renting out your ADU can give your finances a boost. “If you rent an ADU to a tenant, you can earn extra income,” according to My Home by Freddie Mac . This can help you pay your monthly mortgage or offset other expenses.”

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With so many families living together during the pandemic lockdowns, the demand for ADUs increased. “I think COVID-19 and the sharp uptick in housing prices have only poured fuel on the fire,” Caitlin Bigelow , CEO and co-founder of Maxable, a leading source for ADU advocacy and resources, tells Better Homes & Gardens. “We’re expecting to see ADUs surge in popularity.”

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One of the nicer things about having an ADU is you can have a family member close enough to see frequently while still having privacy and space. “There is a level of independence and privacy that is really appealing,” Minnesota-based architect Christopher Strom tells Better Homes & Gardens. “In many cases, people in the ADU want to be in proximity of people in the primary residence but not in the way.”

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Having an ADU is ideal for multi-generational living. “An ADU could be a good solution if your adult children are returning to live with you, you need to take care of your aging parents, or you are a caretaker for a family member with mental or physical challenges or limitations,” according to My Home by Freddie Ma

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ADUs are not cheap to build. “We see very few ADUs completed for less than a couple hundred thousand dollars at this point,” Alex Czarnecki , chief executive of the design-build firm Cottage, tells the Los Angeles Times . Czarnecki tells the publication homeowners should be prepared to spend $20,000 to $30,000 on design and permitting alone.

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Consult with professionals before getting started on a prospective ADU project. “That’s a huge thing for us, making sure that someone has a realistic budget, making sure someone knows about the financing options that are out there to help them and making sure … they’re going to build the right type of ADU,” Renée Schomp , former director of the Napa Sonoma ADU Center, tells the Los Angeles Times .

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Make sure to check your local zoning codes before you get started. “Before you add an ADU to your home, you will need to learn about the zoning code that applies to your property and the surrounding area,” says Freddie Mac. “To find your local zoning code, you can

  • Check to see if your local government’s website has a section for zoning.
  • Reach out to your local zoning or building code office.
  • Contact the municipal planning department.”