ADU construction

Many homeowners in California have finally realized the value of having accessory dwelling units. They know how these units can help in increasing their property value. That’s why ADU construction is getting popular these days. 

ADU construction

ADU Construction in Adding Property Value 

Here at LARC, Inc., we receive several questions from our clients about how an ADU can improve property value. Unfortunately, we couldn’t give them a simple answer. 

The reason for this is that adding value to your property through a dwelling unit depends on the type of ADU you build. 

For that reason, we highly recommend that you talk to our engineers to help you design an ADU that’s guaranteed to meet your requirements. 

 

What ADU to Build? 

ADUs are of different types. You can have detached units, attached ones, or garage conversion dwelling units. 

Not all ADUs can significantly add value to your property. 

If you choose a detached unit, it’s an ADU that is separate from your existing home. When you complete it, it can offer the most value to your property. 

The reason for this is that you’re adding additional livable footage to your property. 

Appraisers can use it to know how much your property is worth. Depending on how huge your property is, the detached unit could boost property value by up to $470,000. 

In that case, you could make a huge ROI by just building a new guest house on your single-family zoned property. 

 

How an Attached ADU Can Help? 

If your property isn’t enough to build a detached ADU, you can opt for an attached unit. By the term itself, it is built as an addition to your existing home. 

It may be attached to your existing home but it can still add livable space to your property. However, compared to a detached ADU, an attached unit offers little less privacy. 

Then again, a house appraiser can still utilize a cost per square foot analysis in knowing the value of the new unit. 

In that case, an attached unit is less valuable than a detached one. The city only allows increasing the size of your house by 50%. Despite that, it’s still a huge increase compared to not having an ADU. 

 

Converting Your Garage 

If you have an existing garage, you can convert it into a dwelling unit. It won’t substantially increase your property value. 

Even though it doesn’t significantly affect the value of your property, this type of ADU is the least expensive to construct. 

However, before you choose this option, you must consider that as you convert your garage into a dwelling unit, you lose its purpose. 

That is, you can’t use it as your garage anymore. Then again, it still increases property value. 

You may only choose this option if you wish to use your garage and convert it into a dwelling unit for rental income. A garage conversion can give you a gross rental income of up to $3,000. 

 

Ready to Build an ADU? 

If you have decided to boost your property and build an ADU, it’s time to call our ADU construction team. Please dial 818-975-8323.

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